Good Afternoon,
(I posted this to biz.comp.accounting and realized immediately afterwards that it may not be the proper forum for my question, so I'm posting it here also)
I have completed our tax return for 2007 using TaxACT (importing 2006 return to aid in this), except for one entry that has me puzzled.
In previous year's returns, the K-1 Box 15a entry was always a negative amount. This year it's a positive amount: $1,754. And is flagged by TaxACT as a yellow alert. TaxAct states:
---------------- "A calculation has been made with TaxACT of the difference between depreciation allowed for the regular tax and depreciation allowed for the AMT for assets in the system acquired after 1986 of $0 for Form
6251. The amount shown below includes any entries from Partnership K-1s, S-corporation K-1s, and trust or estate K-1s. Make any adjustments that may be needed.Post-1986 depreciation difference between regular tax and AMT: $1,754 Check here if no additional adjustments are needed: ______
Difference between regular and AMT depreciation are also be sorted (sic) according to passive activities which appear on line 18."
----------------
The K1 is for my husband's S-corporation (50% ownership) and line 18 on form 6251 is blank (as it should be according to the K-1). I don't understand what adjustment may need to be made. Or if an adjustment is even necessary (check box or not check box? and then...?).
The forms being filed this year are: 1040, Sch C (my biz), Sch E (husband's biz), Sch SE (my biz), and 4562 Depreciation and Amortization (husband's biz).
It's quite likely I haven't supplied enough information for you to help me. If this is the case please tell me what further information you need.
Would appreciate some positive feedback if you are able to help.
Thank You. Cheryl