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2021 Instructions for Form 6251

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Note: The draft you are looking for begins on the next page. Caution: DRAFT—NOT FOR FILING This is an early release draft of an IRS tax form, instructions, or publication, which the IRS is providing for your information. Do not file draft forms and do not rely on draft forms, instructions, and publications for filing. We do not release draft forms until we believe we have incorporated all changes (except when explicitly stated on this coversheet). However, unexpected issues occasionally arise, or legislation is passed—in this case, we will post a new draft of the form to alert users that changes were made to the previously posted draft. Thus, there are never any changes to the last posted draft of a form and the final revision of the form. Forms and instructions generally are subject to OMB approval before they can be officially released, so we post only drafts of them until they are approved. Drafts of instructions and publications usually have some changes before their final release. Early release drafts are at IRS.gov/DraftForms and remain there after the final release is posted at IRS.gov/LatestForms. All information about all forms, instructions, and pubs is at IRS.gov/Forms. Almost every form and publication has a page on IRS.gov with a friendly shortcut. For example, the Form 1040 page is at IRS.gov/Form1040; the Pub. 501 page is at IRS.gov/Pub501; the Form W-4 page is at IRS.gov/W4; and the Schedule A (Form 1040/SR) page is at IRS.gov/ScheduleA. If typing in a link above instead of clicking on it, be sure to type the link into the address bar of your browser, not a Search box. If you wish, you can submit comments to the IRS about draft or final forms, instructions, or publications at IRS.gov/FormsComments. We cannot respond to all comments due to the high volume we receive and may not be able to consider many suggestions until the subsequent revision of the product. If you have comments on reducing paperwork and respondent (filer) burden, with respect to draft or final forms, please respond to the relevant information collection through the Federal Register process; for more info, click here. Department of the Treasury 2021 Internal Revenue Service Instructions for Form 6251 Alternative Minimum Tax—Individuals Section references are to the Internal Revenue is imposed in addition to your regular Good records will help you explain any Code unless otherwise noted. tax. It applies to taxpayers who have item and arrive at the correct AMT. certain types of income that receive General Instructions favorable treatment, or who qualify for Keep records that show how you certain deductions, under the tax law. figured income, deductions, etc., for the Future DevelopmentsDRAFTThese tax benefits can significantlyAS AMT. OF Also keep records of any items For the latest information about reduce the regular tax of some that you used to figure the AMT that developments related to Form 6251 and taxpayers with higher economic differ from what you used to figure the its instructions, such as legislation incomes. The AMT sets a limit on the regular tax. For example, you will need enacted after they were published, go to amount these benefits can be used to to separately figure and track certain IRS.gov/Form6251. reduce total tax. carrybacks, carryforwards, basis August 31, amounts,2021 depreciation, and loss Also use Form 6251 to figure your limitation amounts that differ between What's New tentative minimum tax (Form 6251, the AMT and the regular tax. line 9). You may need to know that Exemption amount. The exemption amount to figure the tax liability limit on amount on Form 6251, line 5, has If you refigure an item for AMT by the credits listed under Who Must File, increased to $73,600 ($114,600 if completing an AMT version of a form or earlier. married filing jointly or qualifying worksheet, keep a copy of that AMT widow(er); $57,300 if married filing form or worksheet for your records. separately). Figuring AMT Amounts For the AMT, certain items of income, Also, the amount used to determine Partners and Shareholders deductions, etc., receive different tax the phaseout of your exemption has If you are a partner in a partnership or a treatment than for the regular tax. increased to $523,600 ($1,047,200 if shareholder in an S corporation, see Therefore, you will need to figure items married filing jointly or qualifying Schedule K-1 and its instructions to for the AMT differently from how you widow(er)). figure your adjustments or preferences figured them for the regular tax. These from the partnership or S corporation to AMT tax brackets. For 2021, the 26% instructions will help you figure AMT include on Form 6251. tax rate applies to the first $199,900 items by using the amount you figured ($99,950 if married filing separately) of for the regular tax and refiguring it for Nonresident Aliens taxable excess (the amount on line 6). the AMT. In some cases, it is easiest to If you are a nonresident alien and you This change is reflected on lines 7, 18, refigure an item for AMT by completing disposed of U.S. real property interests and 39. a tax form or worksheet a second time at a gain, you must make a special using additional AMT instructions. computation. Fill in Form 6251 through These instructions refer to such a form Who Must File line 6. If your net gain from the or worksheet as an “AMT” version. If Attach Form 6251 to your return if any of disposition of U.S. real property you do complete an AMT version of a the following statements are true. interests and the amount on line 4 are form or worksheet, don’t attach it to your 1. Form 6251, line 7, is greater than both greater than the tentative amount tax return unless instructed to do so. For line 10. you figured for line 6, replace the example, you may have to attach an amount on line 6 with the smaller of that 2. You claim any general business AMT Form 1116, Foreign Tax Credit, to net gain or the amount on line 4. Also credit, and either line 6 (in Part I) of your return; see Line 8, later. Form 3800 or line 25 of Form 3800 is enter “RPI” on the dotted line next to more than zero. As you figure some deductions and line 6. Otherwise, don’t change line 6. credits for the AMT, carrybacks or 3. You claim the qualified electric carryforwards to other tax years may be vehicle credit (Form 8834), the personal Credit for Prior Year different from what you figured for the Minimum Tax use part of the alternative fuel vehicle regular tax. Examples are investment refueling property credit (Form 8911), or interest expense, a net operating loss, a See Form 8801, Credit for Prior Year the credit for prior year minimum tax capital loss, a passive activity loss, and Minimum Tax—Individuals, Estates, and (Form 8801). the foreign tax credit. Your at-risk limits Trusts, if you paid AMT for 2020 or you 4. The total of Form 6251, lines 2c and basis amounts may also differ for had a minimum tax credit carryforward through 3, is negative and line 7 would the AMT. on your 2020 Form 8801. If you pay be greater than line 10 if you didn’t take AMT for 2021, you may be able to take into account lines 2c through 3. Recordkeeping a credit on Form 8801 for 2022. You must keep records to support items Optional Write-off for Purpose of Form reported on Form 6251 in case the IRS Use Form 6251 to figure the amount, if has questions about them. If the IRS Certain Expenditures any, of your alternative minimum tax examines your tax return, you may be There is no AMT adjustment for the (AMT). The AMT is a separate tax that asked to explain the items reported. following items if you elect for the Aug 17, 2021 Cat. No. 64277P regular tax to deduct them ratably over any generation-skipping transfer taxes into account all adjustments and the period of time shown. on income distributions. preferences. • Circulation expenditures—3 years If you aren’t filing Schedule A (Form • Gross income from property held for (section 173). 1040), then enter the standard investment. • Research and experimental deduction amount that you reported on • Net gain from the disposition of expenditures—10 years (section Form 1040 or 1040-SR, line 12a. property held for investment. 174(a)). • Net capital gain from the disposition • Mining exploration and development Net qualified disaster loss. If you of property held for investment. costs—10 years (sections 616(a) and filed Schedule A just to claim an • Investment expenses. 617(a)). increased standard deduction on Form Include on line 4a any tax-exempt Intangible drilling costs—60 months 1040 or Form 1040-SR due to a loss • interest income from private activity (section 263(c)). you suffered related to property in a federally declared disaster area, then bonds that must be included on Form For informationDRAFT on making the enter zero on line 2a andAS go to line 2b. 6251, OF line 2g. If you have any election, see section 59(e) and You will include the amount of the investment expenses that would have Regulations section 1.59-1. Also see standard deduction (before it was been deductible if the interest on the Pub.
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