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Level 5
September 17, 2020
Question

Alternative Minimum Tax Research and Experimental Costs Preference

  • September 17, 2020
  • 1 reply
  • 9 views

 Every year a negative amount appears on line 2r of Form 6251 for my client. Yes I have had and entered Section 59(e)(2) expenses in the partnership input screen (line 13 j Screen 20) but I have never elected to amortize the costs. Why does this line 2r populate automatically each year and where does the amount come from. I have never been able to receive a helpful response from Lacerte on this matter.

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1 reply

George4Tacks
Level 15
September 19, 2020

This sounds like something generated in prior year, probably from the K-1 in that year. Research and Experimental Costs that are depreciated or amortized may have different regular and AMT rates. The number represents those differences. If you feel it is there inappropriately, simple delete it. I believe you will find it in Screen 40. 

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