Only property used in a trade or business or to produce income can be depreciated. The kinds of property that can be depreciated include machinery, equipment, buildings, vehicles, and furniture. Depreciation is a very complex subject. For more information, see Topic 704, Depreciation, Publication 946 (PDF file), How to Depreciate Property, or Publication 534 (PDF file), Depreciating Property Placed in Service Before 1987.

Are incentive stock options subject to alternative minimum tax, and if so, how do I determine the basis for the stock?

A taxpayer generally must include in alternative minimum taxable income; if the price (if any) paid for an incentive stock option is exceeded by the option's fair market value at the time, his rights to the stock are freely transferable and are not subject to a substantial risk of forfeiture.

If a taxpayer acquires stock pursuant to the exercise of an ISO and disposes of the stock in the same taxable year, the tax treatment for regular taxes and the alternative minimum taxes are the same. See IRC 83, IRC 56(b)(3), and IRC 422(c)(2).