Which of the Following Statements About the Alternative Minimum Tax

question 73

Multiple Choice

Which of the following statements about the alternative minimum tax depreciation rules is correct?

• A)The MACRS depreciation rules are used to calculate the depreciation deduction when calculating alternative minimum taxable income regardless of the date the property was placed in service.
• B)The excess of the gain reported on the disposition of tangible personal property for income tax purposes over the gain reported for alternative minimum tax purposes is a positive adjustment to taxable income in arriving at alternative minimum taxable income.
• C)A 31.5-year recovery period is used when calculating the commercial real property depreciation deduction for alternative minimum taxable income purposes.
• D)No depreciation adjustment is made when computing AMT for real property acquired after 1998.

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