I converted a property to become a rental property at the beginning of 2011 and am trying to figure out which method (MACRS vs. ADS) will be best for claiming depreciation to optimize tax impact? Here's the situation:

This rental property is my only passive activity and my AGI is too high to deduct in any given year. But, I understand that the passive loss will convert on the sale of the property to active and be used to offset either capital gains on the sale or active income. What I'm having problems with is understanding how AMT might impact this (I typically have at least a small AMT obligation each year)? Would the gain in the year of sale (esp. if offsetting active income) be affected by AMT? In the years prior to sale, it seems like higher depreciation (using MACRS) might increase my tax obligation because of AMT?

So which method is most likely to be the best choice? MACRS to maximize carryover passive losses that can be converted to offset active income (or capital gains) in the year of sale? Or ADS because AMT is likely to screw up the first scenario in addition to the potential AMT implications in every year between now and sale?

Thanks in advance.