Omar acquires used 7-year personal property for $100,000 to use in his business in February 2013.Omar does not elect § 179 expensing,but does take the maximum regular cost recovery deduction.He elects not to take additional first-year depreciation.As a result,Omar will have a positive AMT adjustment in 2013 of what amount?

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The AMT adjustment is the difference between the regular tax depreciation and the AMT depreciation. For 7-year property, the regular MACRS method uses 200% declining balance, while AMT uses 150% declining balance. The difference in depreciation for 2013 results in a positive AMT adjustment of $3,580.

Omar Acquires Used 7-Year Personal Property for $100,000 to Use