K-1 (Post 1986 Depreciation Adjustment)

3 posts by 2 users

Kevin Schick

from California

Apr 14 '08, 12:37 PM

ok, my obsessive compulsive nature has ran it's course and I just cannot figure out on my own what the amount on my Form 1120S K-1 Line 15 represents. It has a code A and has something to do with depreciation and AMT limits ...

If anyone can shed some light on what the heck this is for, I would great appreciate it.


Edited Jun 26 2010, 05:03

Kevin Schick

from California

Apr 14 '08, 11:10 PM

ok, since i know you were all dying to know, i found out a little more.

Evidently S-Corp rental property depreciation is figured differently for AMT calculations. The code of A is used to distinguish the difference between the regular depreciation amount and the AMT depreciation amounts.


Edited Jun 26 2010, 05:03

Joe Wilson

Accountant from Newtown, Connecticut

Apr 21 '08, 08:02 PM

Actually it is not only for S-corporations. That is just the line on the K-1 that they put the AMT Depreciation adjustment on. For P'ships, it is line 17A.

There are several different depreciation amounts for all property, not just rental property. There is Book (for GAAP), Tax, Alternative Minimum Tax (AMT), Adjusted Current Earnings (ACE, now same as AMT), Earnings & Profits (E&P) and State (some states allow bonus depreciation, some don't, so you will have a fed and state tax depreciation difference also.)

When I worked on large REITs, we had schedules for every one of these different depreciation rules. The only ones that apply to individuals will be Fed Tax, AMT & state tax.


Edited Jun 26 2010, 05:05

Manage Keyword Alerts

View All Forums