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Author: inparadise Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121338  
Subject: AMT and business deductions Date: 4/16/2008 7:01 AM
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We are looking at buying a house to turn into a vacation rental property. We expect to offset against the income from that property against all the expenses and depreciation associated with the business. We will not use it personally for more than the amount of time allowed by law, (the greater of 14 days or 10% of time rented, IIRC.) It is expected that for a few years we will have a loss to use against ordinary income.

That said, we came darned close to being hit with AMT this year. If we trigger AMT, will it affect the business deductions? At some point, (possibly rather early on,) the rental could add to our tax liability. The profitability spread sheets we are using does not take AMT into consideration when dealing with tax consequences. What do I need to take into consideration for AMT?

IP,
doubtlessly needing to go see a CPA, but wanting to get some better understanding first
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