Leased personal property placed in service before December 3

Leased personal property placed in service before December 31, 1986:

a) can be depreciated for alternative minimum tax purposes using an accelerated depreciation method.

b) cannot be depreciated for regular tax purposes using an accelerated method of depreciation.

c) that is being depreciated using an accelerated depreciation method may cause an adjustment, which may increase or decrease the regular taxable income.

d) that is depreciated for regular tax purposes using an accelerated depreciation method can cause a preference, which will increase the regular taxable income.

Solution

Solution: can be depreciated for alternative minimum tax purposes using an accelerated depreciation method.

Explanation: The Accelerated Cost Recovery System (ACRS) is applicable to property first used before before December 31, 1986