reduced AMT cost of rental house in entire disposition
A taxpayer reports that in their 2018 tax return, the accountant used the actual property cost paid on Form F4797, but used a significantly lower cost basis on the AMT Form F4797. After reviewing the relevant form instructions, the taxpayer could not find a basis for this, and it was difficult to contact the accountant's office due to its closure during the pandemic. This article outlines the background of the issue and suggests possible reasons.
An accountant filed my 2018 tax return. He filed F4797 and AMT F4797. Somehow, in the F4797, the cost of the rental house sold was real cost I paid but the AMT cost was much smaller. I could not find any cases which make me use a smaller AMT costs. I read the instructions of F4797 and F6251 but I cannot find when something like this happens. I cannot contact easily the accountant because his office is closed due to coronavirus. Thanks