[Anonymous]

What is it and why would a company that formed after 1986 have one?

[Justinnnn]

The current AMT rules apply to tax years after 1986 (and transition rules apply to pre-1987 years). I believe this specific rule applies to property placed in service after 1986, not only corporations formed after 1986.

The post 1986 depreciation is an AMT adjustment. MACRS depreciation for certain property is on 200% declining balance. AMT depreciation for certain property is based on 150% declining balance. The difference year to year is an AMT adjustment. Over the life of an asset, the adjustment nets to $0.

If bonus depreciation is taken on the property, AMT depreciation = MACRS for the entire life of the asset (no 150% and no AMT adjustment).

REG 80 2/7/11
FAR 91 10/8/11
AUD 97 11/22/11
BEC 96 2/4/12

CPA 3/15/13

[Justinnnn]

This belongs in REG by the way not FAR.

This wouldn't even belong in income tax accounting as AMT differences are not recorded in ASC 740.

REG 80 2/7/11
FAR 91 10/8/11
AUD 97 11/22/11
BEC 96 2/4/12

CPA 3/15/13

[jeff]

I moved…FAR is the default setting and people miss it sometimes

[Anonymous]

Thanks Justinnnn! And sorry about the misclassification; I'll be more careful in the future 🙂

[Author]

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