Heather purchased furniture and fixtures (7-year property)for her retail shop for $50,000.What is the AMT depreciation adjustment required in 2014 if the property was purchased in May 2014,assuming no bonus depreciation was taken?

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The AMT depreciation adjustment for 7-year property is calculated by multiplying the unadjusted basis by 1/7. In this case, the unadjusted basis is $50,000, so the AMT depreciation adjustment is $50,000 x 1/7 = $7,145. However, since the property was purchased in May 2014, only 8/12 of the full year's depreciation is allowed. Therefore, the AMT depreciation adjustment for 2014 is $7,145 x 8/12 = $4,763.

Heather Purchased Furniture and Fixtures (7-Year Property)for Her Retail Shop