Keosha acquires used 10-year personal property to use in her business in 2017 and uses MACRS depreciation for regular income tax purposes. As a result, Keosha will incur a positive AMT adjustment in 2017, because AMT depreciation is slower.

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Under the Alternative Minimum Tax (AMT) rules, taxpayers must use the slower straight-line method of depreciation instead of the accelerated MACRS method. As a result, the AMT depreciation adjustment is usually positive, meaning that the taxable income for AMT purposes will be higher than the regular tax. Since Keosha is using MACRS depreciation for regular tax purposes, she will incur a positive AMT adjustment in 2017.

Keosha Acquires Used 10-Year Personal Property to Use in Her