Is residential rental property depreciation subject to the AMT depreciation adjustment?
It depends on the year you placed the property in service. If you placed the property in service after 1998, you don’t have to make an Alternative Minimum Tax (AMT) depreciation adjustment on the home itself. However, AMT depreciation rates may apply if both of these are true:
- You separately depreciate items you used in a residential real estate activity, like:
- Appliances
- Carpet
- Furniture
- You use the 200% declining balance method.
To learn more, see the instructions for Form 6251.
You might not need to adjust depreciation. However, you might need to make a passive-activity adjustment. Make that adjustment on Form 6251.
Related Resources
The IRS needs additional information to forward your case to the Office of Appeals. Learn more from the tax experts at H&R Block.
Learn whether federal Form 8379: Injured Spouse Allocation applies to your state tax return from the tax experts at H&R Block.
Learn about the IRS Notice CP87D, why you received it, and how to address it with help from the tax experts at H&R Block.
Learn about IRS payment plans, also called installment agreements. Get insight from H&R Block on the options you may have if you can't pay your tax bill.