TaxACT and Yellow Alert on Form 6251 AMT-Individuals, Line 17

Discussion in 'Accounting Software' started by CT, Mar 20, 2008.

  1. CT

    CT Guest

    Good Afternoon,

    I have completed our tax return for 2007 using TaxACT (importing 2006
    return to aid in this), except for one entry that has me puzzled.

    In previous year's returns, the K-1 Box 15a entry was always a
    negative amount. This year it's a positive amount: $1,754. And is
    flagged by TaxACT as a yellow alert. TaxAct states:

    "A calculation has been made with TaxACT of the difference between
    depreciation allowed for the regular tax and depreciation allowed for
    the AMT for assets in the system acquired after 1986 of $0 for Form
    6251. The amount shown below includes any entries from Partnership
    K-1s, S-corporation K-1s, and trust or estate K-1s. Make any
    adjustments that may be needed.

    Post-1986 depreciation difference between regular tax and AMT:
    Check here if no additional adjustments are
    needed: ______

    Difference between regular and AMT depreciation are also be sorted
    (sic) according to passive activities which appear on line 18."

    The K1 is for my husband's S-corporation (50% ownership) and line 18
    on form 6251 is blank (as it should be according to the K-1). I don't
    understand what adjustment may need to be made. Or if an adjustment is
    even necessary (check box or not check box? and then...?).

    The forms being filed this year are: 1040, Sch C (my biz), Sch E
    (husband's biz), Sch SE (my biz), and 4562 Depreciation and
    Amortization (husband's biz).

    It's quite likely I haven't supplied enough information for you to
    help me. If this is the case please tell me what further information
    you need.

    Would appreciate some positive feedback if you are able to help.

    Thank You.
    CT, Mar 20, 2008
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