Question

The alternative depreciation system is used to calculate the portion of depreciation treated as an alternative minimum tax (AMT) adjustment for purposes of the corporate and individual AMT.

a-True
b-False

Answer 1

The alternative depreciation system is not used for calculating the AMT adjustment.

Step-by-step explanation:

The statement is false. The alternative depreciation system (ADS) is actually used to calculate depreciation deductions for assets used in business or income-producing activities. It is not specifically related to the alternative minimum tax (AMT) adjustment. The AMT adjustment is a separate calculation that determines the difference between regular tax calculations and the AMT tax calculations.