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
Learn about the consequences you can face if you lie on your tax return. Get the facts from the tax experts at H&R Block.
Learn more about IRS Letter PCA, why you received the letter, and what it means for you with help from the tax experts at H&R Block.
Did you receive IRS Letter 3500? Learn more about letter 3500 and how to handle it with help from the tax experts at H&R Block.
Can you file your taxes without a W-2 form? If you are missing your W-2 form, the Tax Institute can help. Learn what to do so you can get your taxes filed before the deadline.
