Property placed in service after 1998

For property placed in service after 1998, no adjustment is necessary if the property is IRC Section 1250(c) property or tangible property (other than IRC Section 1250(c) property) depreciated using the straight-line method or 150% declining balance method for regular tax. For any other tangible property, use the 150% declining balance method, switching to the straight-line method the first tax year that it provides a larger deduction. Use the same convention and recovery period used for regular tax.

Get federal Pub. 946 or refer to IRC Section 168(g) for more information on the ADS method.

Grapevines replanted as a result of phylloxera infestation or Pierce's Disease that are depreciated over 5 years for regular tax must be depreciated over 10 years for AMT.

Partners, S corporation shareholders, and LLC members : Enter the amount shown on the Schedule K-1 (565, 100S, or 568) issued by your partnership, S corporation, or LLC.

Enter on line 8 the difference between depreciation for regular tax and depreciation for AMT. Do not include depreciation from the following:

Expenses you incurred as an employee and deducted on federal Schedule A (Form 1040), Itemized Deductions.

An activity for which you are not at risk.

Amounts received from a partnership or S corporation, if the basis limitations under IRC Section 704(c) or IRC Section 1366(d) apply.

A passive activity.

A tax shelter farm activity.

Instead, include these types of depreciation when you figure adjustments for line 5, line 11, line 13f, line 13j, or line 13k, whichever applies.

If the AMT depreciation is more than the regular tax depreciation, enter the difference on line 8 as a negative amount.