Level 6

Question

Amt on sale of assets on 1120s property what am I not seeing?

Forum|Forum|4 years ago
August 4, 2021
1 reply
4 views

I have an S corp that sold their business. Mainly depreciable equipment. 900,000 with 725,000 depreciated for $220,000. Every thing looks good on the 4797 and ok with that but on their personal return they are being hit with $105,000 in AMT tax. so their total tax owed will be $185,000. What am I not seeing or thinking when it come to the AMT. This just does not seem right. Is there something I am not marking.

Michele

Lacerte Tax

This topic has been closed for replies.

Level 15

Do you have the AMT accumulated depreciation entered?

HumanKind... Be Both

Level 6

The k-1 shows -$1636 for post 1986 adjustment

So the 6251 is showing 700,000 in assets and then gives credit for 268,000 for the gain on property

and shows 423,000 for lin k dispostion of property.

thx

Michele

Level 15

@michele are you preparing the S-Corp? It appears Lacerte may be doubling the prior AMT depreciation. Look into that https://proconnect.intuit.com/community/lacerte-tax-discussions/discussion/re-sale-of-truck-should-4797-part-iii-line-22-depreciation-ever/01/171810#M31606

Answers are easy. Questions are hard!