Form 8582 - MAGI - AMT v. Regular Tax

Not as far as I know. If you look at the instructions for Line 19 and 20 of the 6251 you will see that there can be a difference in passive activity gains or losses. As such, you have to prepare a pro forma 8582 for AMT purposes. Could this be what ProSeries is doing?

ProSeries seems to think so. However, Regs. Sec. 1.55-1 states,

Depreciation differences - or any of the items listed on Form 6251 that are above the line....

ProSeries is wrong. MAGI is the same for regular and AMT purposes as you found in the regulation. I have tried several times to get intuit to fix the error. I hear that Lacerte, also by Intuit, uses the same MAGI for both regular and AMT purposes.

Perhaps if we both complain, Intuit will fix it. Eternal optimist?

Drew Edmundson, CPA Cary, NC

This is a rough outline of the situation. T/P pays AMT. Active participation rental real estate activities. The "AMT Form 8582" properly shows a $1,000 rental loss on Line 1d, which properly includes AMT depreciation adjustments. No other passive activities. "Regular Tax MAGI" is $146,000. T/P has $4,000 private activity bond interest unrelated to the rental activity. ProSeries thinks that "AMT MAGI" is $150,000.

Is the allowable AMT rental loss $1,000 or $0?

Did it throw an amount onto Form 6251 line 19? If so, how much?

And if so, does it give any hints where that line 19 amount is from? Possibly a difference in depreciation expense between regular & AMT?

Form 6251, Line 19 is $1,100. This is the excess of $1,100 (the rental loss properly allowed for regular tax, which is the entire loss) over $0 (the AMT rental loss allowed according to ProSeries). There is a $100 positive depreciation adjustment, so a $1,000 loss is properly shown on Line 1d of the AMT Form 8582.