BUSINESS-RELATED CHANGES (1 OF 2)
01.Core Concepts
Depreciation (Deferral Item) • Asset class lives lengthen when a taxpayer becomes an AMT taxpayer. Oil and Gas Operations (Deferral Item) • Percentage depletion • The amount of percentage depletion taken for regular tax in excess of the adjusted basis of the property at the end of the year is added back. • Intangible drilling costs • AMT requires 10-year amortization; deductible currently for regular tax. • Preference is excess of regular tax deduction over [AMT amortization + (65% x net oil and gas income)].