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Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 10172
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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I have a client who invests in commercial real estate. this

Customer Question

I have a client who invests in commercial real estate. this year he received a K-1 from partnership that had box 20Z. it is listed as additional supplemental information. Details are below. How do I record this on his personal tax return? Does this come
off of his income number or is this just for reporting and the depreciation should already be in his Box 2 Rental real estate income already? It reads as below Schedule K-1, LIne 20Z Additional Supplemental Information Additional Alternative Minimum tax information
AMT Total Depreciation: 28000 ACE Post 1993 Property Depreciation 28000
Submitted: 1 year ago.
Category: Tax
Expert:  Lane replied 1 year ago.

Hi,

...

For property placed in service after 1998, if the 200% declining balance (DB) MACRS method is used for regular tax purposes, depreciation must be recalculated for AMT purposes using 150% DB MACRS. The difference between regular depreciation and this redetermined amount is an income adjustment subject to inclusion in Alternative Minimum Tax Income (AMTI)

...

What they are telling you here is that the depreciation was calculated for AMT and that this is the depreciation that was used, but this is informational

...

Was there an AMT adjustment amount in line 17?

Customer: replied 1 year ago.
There is no AMT adjustment in line 17.
So I don't need to record this anywhere? It doesn't come off his income anywhere?
Expert:  Lane replied 1 year ago.

That's right - The items are statistical in nature and should not be utilized in the preparation of an individual's tax return and should not be put into your electronic tax preparation software.

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