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 Topics

Related Resources

I recently received an adjustment letter from the IRS, which explained that an adjustment to my tax return indicates tha

What should you do if you don't agree with an IRS adjustment letter? Find out more and get tax answers at H&R Block.

What are the short sale tax implications — What short sale tax penalties can I expect?

Learn more about short sale tax implications with advice from the tax experts at H&R Block.

What if I didn’t file taxes last year, or forgot to file taxes, should I file a late tax return?

What happens if you forgot to file taxes? Explore your options to find what's best for your situation. Get tax answers at H&R Block.

New IRS Process for ITIN Renewal | H&R Block

There's a new IRS process for those that have an expired ITIN. Here is some information from H&R Block that you need to know before your ITIN renewal.