Heather purchased furniture and fixtures 7-year property)for her retail shop for $50,000.What is the AMT depreciation adjustment required in 2016 if the property was purchased in May 2016,assuming no bonus depreciation was taken?
A)$1,790.
B)$7,145.
C)$0.
D)$5,355.

Question

Quizplus · Accepted Answer

The AMT (Alternative Minimum Tax) depreciation adjustment is the difference between the regular tax depreciation and the AMT depreciation. For 7-year property, the regular MACRS depreciation method uses the 200% declining balance method, while AMT uses the 150% declining balance method. The adjustment is calculated based on these differences. In this case, the AMT depreciation adjustment is $1,790.

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