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Department of the Treasury Instructions for Form 6251 —Individuals (Section references are to the unless otherwise noted.)

General Instructions cases, line 20). The forms used to figure Credit For Prior Year these credits have information on the tentative minimum tax limit. Minimum Tax Paperwork Reduction Act Get Form 8801, Credit For Prior Year Notice Additional Information Minimum Tax—Individuals and We ask for the information on this form Fiduciaries, if you paid AMT for 1991, or For more details, get Pub. 909, if you had a minimum tax credit to carry out the Internal Revenue laws of Alternative Minimum Tax for Individuals. the United States. You are required to carryforward on line 26 of your 1991 give us the information. We need it to Form 8801. If you pay AMT for 1992, ensure that you are complying with Recordkeeping you may be able to take a credit on your these laws and to allow us to figure and For AMT purposes, certain items of 1993 Form 8801. collect the right amount of tax. income, deductions, etc., receive The time needed to complete and file different tax treatment than for regular Earned Income Credit this form will vary depending on tax purposes. Therefore, for the AMT If you have an earned income credit, you individual circumstances. The estimated you need to recompute items that you must reduce the credit by any AMT. average time is: figured for the regular tax. In some cases, you may wish to do this by Recordkeeping 2 hr., 17 min. completing the applicable tax form a Optional Write-Off for Learning about the second time. If you do complete another Certain Adjustments and Tax law or the form 1 hr., 7 min. form, do not attach it to your tax return. Preference Items (Section Preparing the form 1 hr., 23 min. For the regular tax, some deductions 59(e)) and credits may result in carrybacks or Copying, assembling, carryforwards to other tax years. If you elect to deduct certain adjustment and sending the form Examples are investment interest and preference items ratably over a to the IRS 20 min. expense, a net operating loss, a capital period of time for regular tax purposes, If you have comments concerning the loss, and the foreign tax credit. Because they are not treated as adjustments or accuracy of these time estimates or you may have to refigure these items for tax preference items for AMT purposes. suggestions for making this form more the AMT, the carryback or carryforward These items are: circulation expenditures simple, we would be happy to hear from amount may be different for the AMT under section 173, research and you. You can write to both the IRS and than for the regular tax. Therefore, you experimental expenditures under section the Office of Management and Budget should keep records of these different 174(a), intangible drilling and at the addresses listed in the amounts for the AMT and the regular developmental expenditures under instructions of the tax return with which tax. An AMT carryforward amount will be section 263(c), development this form is filed. important in completing Form 6251 for expenditures under section 616(a), and the following year. mining exploration expenditures under A Change To Note section 617(a). You may elect to deduct Partners, Shareholders, etc. circulation expenditures over 3 years, The preference item for the contribution intangible drilling and development of appreciated property does not apply If you are a member of a partnership or expenditures over 60 months, and the to contributions of tangible personal a shareholder in an S corporation, the other items over 10 years. property made before July 1, 1992. See partnership or S corporation will give You make the election in the year of the instructions for line 6a. you information on any adjustments or the expenditure. You can revoke it only tax preference items relating to it that with the consent of the IRS. If you made Who Must File you have to take into account for Form the election for one of the above items, 6251. do not make an adjustment for that item Complete Form 6251 to see if the on Form 6251. See section 59(e) for alternative minimum tax (AMT) applies to Nonresident Alien Individuals more details. you. Attach it to your return only if: ● You are liable for the AMT, If you disposed of U.S. real property interests at a gain, see the instructions Specific Instructions ● The total of lines 5g through 5s is for line 44 of Form 1040NR, U.S. negative, or Nonresident Alien Income Tax Return. Line 1 ● You have certain credits (such as the You may have to enter a different figure credit for child and dependent care on line 18 of Form 6251 if the amount If your taxable income includes an expenses, the credit for the elderly or figured on the worksheet in the amount from the alcohol fuel credit the disabled, etc.) that are limited by the instructions for line 44 of Form 1040NR under section 87, reduce line 1 by the amount shown on line 18 (or in some is more than the tentative amount you amount of the credit included in income. figured on line 18 of Form 6251.

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Line 3—Overall Itemized Line 5f—Certain Home Mortgage the regular tax, enter the difference as a Deductions Limitation Interest negative amount. Amount Include on this line home mortgage Note: If you took the standard deduction interest from line 9a, 9b, or 10 of instead of itemizing your deductions and The overall limitation of itemized Schedule A (Form 1040) that is for a you had investment interest expense, do deductions on Schedule A (Form 1040) mortgage whose proceeds were not not enter an amount on line 5g unless that applies for regular tax purposes to used to buy, build, or substantially you reported investment interest people with higher incomes does not improve your main home or a qualified expense on Schedule E. If you did, apply for AMT purposes. The amount of dwelling that is your second home. See follow the steps above for completing the limitation is shown on line 9 of the section 163(h)(4). Form 4952. Allocate the investment worksheet for line 26 of Schedule A interest expense allowed on line 6 of the (Form 1040). Enter that amount on line 3 Exception. If the mortgage was taken AMT Form 4952 in the same way you of Form 6251. out before July 1, 1982, do not include did for the regular tax. Enter on line 5g on this line interest on the mortgage if it the difference between the amount Lines 5a through 5s— was secured by property that was your allowed on Schedule E for the regular main home or a qualified dwelling used tax and the amount allowed on Schedule Adjustments by you or a member of your family at E for the AMT. the time the mortgage was taken out. Enter all adjustments on lines 5a through See section 56(e)(3). 5s as positive amounts, unless Line 5h—Depreciation of Tangible otherwise indicated. A qualified dwelling is any house, Property Placed in Service After apartment, condominium, or mobile 1986 Line 5a—Standard Deduction home not used on a transient basis. Caution: Do not include on this line any If you took the standard deduction, enter Line 5g—Investment Interest depreciation adjustment from: that amount on line 5a. If you itemized Expense (1) incurring expenses as an employee your deductions on Schedule A, do not that are deducted on Schedule A; (2) an make an entry on this line. If you completed Form 4952, Investment activity for which you are not at risk, or Interest Expense Deduction, you may from amounts received from a Line 5b—Medical and Dental have an adjustment on this line. Refigure partnership or an S corporation if the Expenses your investment interest expense on basis limitations under section 704(d) or If you have an entry on line 4 of another Form 4952 as follows: 1366(d) apply; (3) a tax shelter farm Schedule A (Form 1040), figure this Step 1. Complete line 1 of Form 4952. activity; or (4) a passive activity. Instead, adjustment as follows: Follow the Form 4952 instructions for take these depreciation adjustments into account when figuring the amount to Step 1. Multiply your adjusted gross line 1, but add to line 1 any interest 1 expense on line 5f of Form 6251 that enter on lines 5c, 5p, 5q, and 5r, income (line 32 of Form 1040) by 2 ⁄2% respectively. (.025). was paid or accrued on indebtedness properly attributable to property held for For the AMT, the depreciation Step 2. Compare the amount from investment within the meaning of section deduction must be recomputed using Step 1 to the amount on line 4 of 163(d)(5). An example is interest on a the alternative depreciation system Schedule A (Form 1040), and enter the home equity loan whose proceeds were described in section 168(g) for tangible smaller amount. invested in preferred stock. It is property placed in service after 1986 (or Line 5c—Miscellaneous Itemized deductible as home mortgage interest after July 31, 1986, if an election was Deductions expense for regular tax purposes, but made under the transitional provision of not for alternative minimum tax section 203(a)(1) of the Act If you itemized your deductions, enter purposes. Add to this amount any of 1986) as follows: the amount, if any, from Schedule A, line interest expense that would have been 1. For any real property described in 24. deductible if interest earned on private section 1250(c) (generally nonresidential Caution: To avoid duplication, any AMT activity bonds issued after August 7, real and residential rental), use the adjustment or tax preference item taken 1986, had been includible in gross straight line method over 40 years. income. into account on this line should not be 2. For any tangible property (other taken into account in figuring the Step 2. Enter your AMT disallowed than the property described in 1 above) amount to enter on any other adjustment investment interest expense from 1991 that is depreciated using the straight line or tax preference item line of this form. on line 2. method for regular tax purposes, Line 5e—Refund of Taxes Step 3. Complete line 3. recompute your depreciation using the Step 4. When completing line 4, straight line method over the property’s Include any refund from line 10 of Form recompute your gross investment class life (explained below). 1040 that is attributable to state or local income, any net gain attributable to the 3. For all other tangible property, use income taxes deducted in a tax year disposition of property held for the 150% declining balance method after 1986. investment, and any investment over the property’s class life, switching Also include on this line any refunds expenses taking into account all AMT to the straight line method in the first tax received in 1992 attributable to state or adjustments and tax preference items year it yields a larger deduction. local personal property taxes, foreign that apply. Include any interest income In applying the above rules: income taxes, or state, local, or foreign and investment expenses from private 1. Use the same convention you used real property taxes, deducted in a tax activity bonds issued after August 7, for regular tax purposes; year after 1986. If you include such 1986. Complete lines 5 and 6. 2. The class life to be used for AMT amounts, you must write a description Enter on line 5g the difference purposes is not necessarily the same as and the amount on the dotted line to the between line 6 of your AMT Form 4952 the recovery period used for regular tax left of the entry space for line 5e. For and line 6 of the Form 4952 completed purposes. The class lives you need to example, if you include a refund of real for regular tax purposes. If your use for AMT purposes can be found in property taxes, write “real property” and investment interest expense allowed for Rev. Proc. 87-56, 1987-2 C.B. 674, or in the amount to the left of the entry the AMT is more than that allowed for space. Pub. 534, Depreciation. Use 12 years for

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any tangible personal property that does amortized over 10 years for the AMT. tax, enter the difference as a negative not have an assigned class life; Refigure these expenditures for the AMT amount. and enter the adjustment on line 5i. 3. See Rev. Proc. 87-57, 1987-2 C.B. Line 5l—Pollution Control 687, for optional tables (14 through 18) Figure the adjustment in the same that can be used in computing manner as described above for Facilities Placed in Service After depreciation for AMT purposes. (These circulation expenditures. 1986 optional tables are also included in Pub. If you had a loss on property for which The election under section 169 to 534.) Rev. Proc. 89-15, 1989-1 C.B. 816, a deduction for circulation or research amortize the basis of a certified pollution has special rules for applying Rev. Proc. and experimental expenditures was control facility over a 60-month period is 87-57 for short years and for property allowed for regular tax purposes, see not available for AMT purposes. disposed of before the end of the section 56(b)(2)(B). Instead, the deduction is determined recovery period; Line 5j—Mining Exploration and using the alternative depreciation system 4. Do not make an adjustment for Development Costs Paid or and the class life asset depreciation motion picture films, videotapes, sound range for the facility under the straight recordings, or property depreciated Incurred After 1986 line method. under the units-of-production method or Caution: Skip this line if, for the regular Enter on line 5l the difference between any other method not expressed in tax, you elected to take the optional your recomputed AMT deduction and terms of years; and 10-year write-off under section 59(e). the deduction you claimed under section 5. Do not recompute depreciation for The deduction claimed for regular tax 169 for regular tax purposes. If the AMT purposes for any part of the cost purposes for mining exploration and amount allowed for AMT is more than of any property for which you made the development costs paid or incurred after the amount allowed for regular tax, enter election under section 179 to treat the 1986 under sections 616(a) and 617(a) is the difference as a negative amount. cost of the property as an expense not allowed for AMT purposes. Instead, deduction. you must capitalize these costs and Line 5m—Installment Sales of Enter on line 5h the difference amortize them ratably over a 10-year Certain Property period beginning with the tax year in between the recomputed depreciation For either of the following kinds of which they were paid or incurred. for AMT purposes and the depreciation dispositions in which you used the deducted for regular tax purposes. If the Enter on line 5j the difference between installment method for regular tax depreciation figured for the AMT is more your recomputed AMT expense and the purposes, you must refigure your income than the depreciation deducted for the expense you claimed for regular tax for AMT purposes without regard to the regular tax, enter the difference as a purposes. If your recomputed AMT installment method: negative amount. expense is greater than the expense you 1. Any disposition after March 1, claimed for regular tax purposes, enter If depreciation is capitalized to 1986, of property used or produced in the difference as a negative amount. inventory under the uniform your farming business that you held capitalization rules, refigure the inventory If you had a loss on property for which primarily for sale to customers. using the rules discussed above. a deduction for mining exploration and 2. Any nondealer disposition of development costs was allowed for property that occurred after August 16, Line 5i—Circulation and Research regular tax purposes, see section 1986, but before January 1, 1987, if an and Experimental Expenditures 56(a)(2)(B). Paid or Incurred After 1986 obligation that arose from the disposition Line 5k—Long-Term Contracts was an installment obligation to which Caution: Skip this line if, for regular tax Entered Into After 2/28/86 the proportionate disallowance rule purposes, you elected to take the applied. optional 3-year write-off period for For AMT purposes, you must use the Enter on line 5m the difference circulation expenditures, or the optional percentage-of-completion method rules between the income you reported for 10-year write-off period for research and described in section 460(b) to determine regular tax purposes and the income experimental expenditures under section your taxable income from any long-term you recomputed for AMT purposes. If 59(e). contract (defined in section 460(f)) you the amount reportable for the AMT is Circulation expenditures paid or entered into after February 28, 1986. less than that reported for the regular incurred after 1986.—For regular tax However, this rule does not apply to: tax, enter the difference as a negative purposes, section 173 allows circulation (1) any home construction contract (as amount. expenditures to be deducted in full in defined in section 460(e)(6)) you entered the tax year they were paid or incurred. into after June 20, 1988, and before Line 5n—Adjusted Gain or Loss However, for the AMT these 1991 if you meet the 2-year estimated Use this line to report any AMT expenditures must be capitalized and completion requirement of section adjustment resulting from the amortized over 3 years beginning with 460(e)(1)(B)(i) and the $10-million ceiling recomputation of a gain or loss from the the year they were paid or incurred. on average annual gross receipts sale or exchange of property during the Refigure these circulation expenditures requirement of section 460(e)(1)(B)(ii), or year, or from the recomputation of a for the AMT. Enter on line 5i the (2) any home construction contract casualty gain or loss to business or difference between your recomputed entered into after 1990. income-producing property. AMT expense and the expense claimed Note: In the case of a contract for regular tax purposes. If the current described in section 460(e)(1), use the Make an entry on this line only if you year deduction for the AMT is more than simplified procedures for allocating costs reported gain or loss on Form 4797, that figured for the regular tax, enter the outlined in section 460(b)(4) to determine Sales of Business Property, Schedule D difference as a negative amount. the percentage of completion. (Form 1040), or Section B of Form 4684, Casualties and Thefts. Recompute Research and experimental Enter on line 5k the difference your gain or loss for those forms. When expenditures paid or incurred after between the income you reported for figuring your adjusted basis, take into 1986.—Research and experimental regular tax purposes and the income account any AMT adjustment you made expenditures that may be deducted in you recomputed for AMT purposes. If this year or in previous years for items full in the tax year they were paid or the amount reportable for the AMT is related to lines 5h, 5i, 5j, 5l, and 5o of incurred under section 174(a) for the less than that reported for the regular Form 6251. Enter on line 5n the regular tax must be capitalized and difference between the gain or loss Page 3 Page 4 of 8 of Instructions for Form 6251 7

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reported for the regular tax and that reported for the activity on that form or instead of line 5q. See the instructions figured for the AMT. If (1) the gain schedule for regular tax purposes. for line 5n. recomputed for AMT purposes is less Note: The AMT amount of any gain or Line 5r—Passive Activities than the gain computed for regular tax loss from activities for which you are not purposes, or (2) the loss recomputed for at risk is likely to differ from the amount Your passive activity gains and losses AMT purposes is more than the loss for regular tax purposes. Your basis in must be refigured for the AMT by taking computed for regular tax purposes, or partnerships and S corporations for AMT into account all AMT adjustments, tax (3) you recomputed a loss for AMT purposes is also likely to differ from your preference items, and any AMT prior purposes and had a gain for regular tax basis for regular tax purposes. Therefore, year unallowed losses that apply to that purposes, enter the difference as a keep adequate records for both AMT activity. You may wish to fill out a negative amount. and regular tax purposes. second Form 8582, Passive Activity Loss Limitations, and the other forms or Line 5o—Incentive Stock Options Enter any adjustment for amounts reported on Schedule D, Form 4684, or schedules on which your passive For regular tax purposes, no income is Form 4797 for the activity on line 5n activities are reported, to determine your recognized when an incentive stock instead of line 5p. See the instructions passive activity loss allowed for AMT option (as defined in section 422(b)) is for line 5n. purposes, but do not file the second set granted or exercised. However, this rule of forms and schedules. does not apply for AMT purposes. Line 5q—Tax Shelter Farm Example. Assume you are a partner in a Instead, you must generally include on Activities partnership and the Schedule K-1 (Form line 5o the excess, if any, of: Complete line 5q only if you have a gain 1065) you received shows the following: 1. The fair market value of the option or loss from a tax shelter farm activity ● A passive activity loss of ($4,125), (determined without regard to any lapse (as defined in section 58(a)(2)) that is not ● A depreciation adjustment of $500 on restriction) at the first time your rights in a passive activity. If the tax shelter farm property placed in service after 1986, the option become transferable or when activity is a passive activity, you must and these rights are no longer subject to a include the gain or loss with your other substantial risk of forfeiture, over ● A tax preference item of $225 for passive activities on line 5r (see below). accelerated depreciation on property 2. The amount you paid for the option. Recompute all gains and losses you placed in service before 1987. Increase your AMT basis of any stock reported for regular tax purposes from Because the depreciation adjustment acquired through the exercise of an tax shelter farm activities by taking into and the depreciation tax preference item incentive stock option by the amount of account your AMT adjustments and tax are deductions that are not allowed for the adjustment. preference items. the AMT, you must first reduce the If you acquired stock by exercising an Caution: To avoid duplication, any AMT passive activity loss by those amounts. incentive stock option and you disposed adjustment or tax preference item taken The result is a passive activity loss for of that stock in the same year, the tax into account on this line should not be the AMT of ($3,400). You would then treatment under the regular tax and the taken into account in figuring the enter this amount on Worksheet 2 of the AMT is the same. amount to enter on any other adjustment AMT Form 8582 and refigure the See section 83 for more details. or tax preference item line of this form. allowable passive activity loss for AMT Note: Your basis in stock acquired Determine your tax shelter farm purposes. through incentive stock options for AMT activity gain or loss for AMT purposes Note: The amount of any passive activity purposes is likely to differ from your using the same rules you used for loss that is not deductible and is carried basis for regular tax purposes. Therefore, regular tax purposes with the following forward for AMT purposes is likely to keep adequate records for both AMT modifications. No recomputed loss is differ from the amount, if any, that is and regular tax purposes so that you can allowed, except to the extent you are carried forward for regular tax purposes. compute your adjusted gain or loss in insolvent (see section 58(c)(1)). A Therefore, keep adequate records for the year you sell the stock. See the recomputed loss may not be used in the both AMT and regular tax purposes. instructions for line 5n. current tax year to offset gains from Enter on line 5r the difference other tax shelter farm activities. Instead, Line 5p—Certain Loss Limitations between the amount that would be any recomputed loss must be reported for the activity on Schedule C, Caution: For passive activities, use line suspended and carried forward C-EZ, E, F, or Form 4835 for AMT 5r instead. For tax shelter farm activities indefinitely until: (1) you have a gain in a purposes and the amount that was (that are not passive), use line 5q. subsequent tax year from that same tax reported for the activity on that form or shelter farm activity, or (2) you dispose Refigure your gains and losses from schedule for regular tax purposes. of the activity. activities for which you are not at risk Enter any adjustment for amounts and basis limitations applicable to Note: The amount of any tax shelter reported on Schedule D, Form 4684, or partnerships and S corporations by farm activity loss that is not deductible Form 4797 for the activity on line 5n taking into account your AMT and is carried forward for AMT purposes instead of line 5r. See the instructions adjustments and tax preference items. is likely to differ from the amount, if any, for line 5n. that is carried forward for regular tax See sections 59(h), 465, 704(d), and Caution: To avoid duplication, any AMT 1366(d). purposes. Therefore, keep adequate records for both AMT and regular tax adjustment or tax preference item taken Caution: To avoid duplication, any AMT purposes. into account on this line should not be adjustment or tax preference item taken taken into account in figuring the into account on this line should not be Enter on line 5q the difference amounts to enter on any other taken into account in figuring the between the amount that would be adjustment or tax preference item line of amount to enter on any other adjustment reported for the activity on Schedule E, this form. or tax preference item line of this form. F, or Form 4835 for AMT purposes and the amount that was reported for the Publicly traded partnership (PTP).—If Enter on line 5p the difference activity on that form or schedule for you had losses from a PTP, you will have between the amount that would be regular tax purposes. to refigure the loss using any AMT reported for the activity on Schedule C, adjustments, tax preference items, and C-EZ, E, F, or Form 4835, Farm Rental Enter any adjustment for amounts any AMT prior year unallowed loss. Income and Expenses, for AMT reported on Schedule D, Form 4684, or purposes and the amount that was Form 4797 for the activity on line 5n Page 4 Page 5 of 8 of Instructions for Form 6251 7

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Tax shelter passive farm activities.— activity bond to the extent the company Line 6f—Intangible Drilling Costs Refigure any gain or loss from a tax received interest on the bond. Note: If, for regular tax purposes, you shelter passive farm activity taking into If you are filing Form 8814, Parents’ elected the optional 60-month write-off account all AMT adjustments, tax Election To Report Child’s Interest and under section 59(e) for all property in this preference items, and AMT prior year Dividends, any tax-exempt interest from category, skip this line. No adjustment is unallowed losses. If the amount is a line 1b of that form that is a tax necessary. gain, it can be included on the AMT preference item must be included on Intangible drilling costs (IDCs) from oil, Form 8582, but if it is a loss, the line 6b. adjustment for the tax shelter passive gas, and geothermal wells are a tax farm activity is the loss you reported for Line 6c—Depletion preference item to the extent that the excess IDCs exceed 65% of the net regular tax purposes. The AMT loss to In the case of mines, wells, and other carry forward is the refigured AMT loss. income from the wells. The tax natural deposits, enter on line 6c the preference item is computed separately Insolvency.—If at the end of the tax amount by which your depletion for oil and gas properties and for year your liabilities exceed the fair deduction under section 611 exceeds geothermal properties. market value of your assets, increase the adjusted basis of the property at the your passive activity loss allowed by that Excess IDCs are computed as follows: end of your tax year. In computing your Figure the amount of your IDCs allowed excess (but not more than your total year-end adjusted basis, use the rules of loss). See section 58(c)(1). for regular tax purposes under section section 1016. However, do not reduce 263(c), but do not include any section the adjusted basis by the current year’s 263(c) deduction for nonproductive Line 5s—Beneficiaries of Estates depletion. and Trusts wells. Then, subtract the amount that Figure the excess amount separately would have been allowed had you Enter on this line the amount from line 8 for each property. If the depletion amortized these IDCs over a 120-month of your Schedule K-1 (Form 1041). This deduction for any property does not period starting with the month the well is your share of the distributable exceed the adjusted basis at year-end, was placed in production. alternative minimum taxable income do not include a tax preference amount Note: If you prefer not to use the adjustment from the estate or trust. for that property. 120-month period, you can elect to use any method that is permissible in Lines 6a through 6f—Tax Line 6d—Accelerated Depreciation of Real Property Placed in Service determining cost depletion. Preference Items Before 1987 Net income is determined by taking Enter all tax preference items on lines 6a the gross income that you received or For AMT purposes, you must use the through 6f as positive amounts. If you accrued during the tax year from all oil, straight line method to figure refigure an item for AMT and the AMT gas, and geothermal wells and reducing depreciation on real property placed in amount is more than that figured for the it by the deductions allocable to these service before 1987. Enter on line 6d the regular tax, do not enter an amount on properties (reduced by the excess IDCs). excess of the depreciation taken on this the line. Note: When refiguring net income, use property for the regular tax over the only income and deductions allowed for Line 6a—Appreciated Property depreciation as refigured for the AMT AMT purposes. Charitable Deduction (using the straight line method). Figure this amount separately for each property Enter the amount by which your and include only positive amounts on Line 8—Energy Preference contribution deduction would be line 6d. For 15-, 18-, or 19-year real Adjustment reduced if all capital gain and section property, use the straight line method 1231 property was taken into account at For certain taxpayers other than over 15, 18, or 19 years. For low-income integrated oil companies, an adjustment its cost or other basis (rather than its fair housing property, use the straight line market value). is allowed based on certain energy method over 15 years. preference deductions. The amount Do not make an adjustment for entered on line 8 may not be more than contributions of tangible personal Line 6e—Accelerated Depreciation of Leased Personal Property 40% of line 7. See section 56(h) and property made before July 1, 1992. Also, Pub. 909 for details. do not include property for which you Placed in Service Before 1987 elected under section 170(b)(1)(C)(iii) to For AMT purposes, you must use the Line 10—Alternative Tax Net figure the contribution deduction using straight line method to figure the property’s adjusted basis rather than depreciation on leased personal property Operating Loss Deduction its fair market value. placed in service before 1987. Enter on (ATNOLD) Line 6b—Tax-Exempt Interest line 6e the excess of the depreciation The ATNOLD is the aggregate of the From Private Activity Bonds taken for the regular tax over the alternative tax net operating loss depreciation as refigured for the AMT Issued After 8/7/86 (ATNOL) carryovers and carrybacks to (using the straight line method). Figure the tax year, subject to the limitation Enter interest you earned on “specified this amount separately for each property explained on page 6. Figure your private activity bonds” reduced by any and include only positive amounts on ATNOLD as follows: deduction that would have been line 6e. For loss years beginning after 1986, allowable if the interest were includible For leased recovery property, other in gross income for regular tax your ATNOL is the excess of the than 15-, 18-, or 19-year real property, deductions allowed for computing purposes. Generally, the term “specified or low-income housing, enter the private activity bonds” means any alternative minimum taxable income amount by which your depreciation (AMTI) (excluding the ATNOLD) over the private activity bond (as defined in deduction figured for the regular tax section 141) issued after August 7, income included in computing AMTI. exceeds the deduction allowable using This excess is computed with the 1986. See section 57(a)(5) for exceptions the straight line method with a half-year and more details. modifications contained in section convention, no salvage value, and a 172(d), taking into account the Exempt-interest dividends paid by a recovery period of 15 years for 10-year adjustments in sections 56 and 58 and regulated investment company are property (22 years for 15-year public the preferences in section 57 (i.e., the treated as interest on a specified private utility property). section 172(d) modifications should be Page 5 Page 6 of 8 of Instructions for Form 6251 (Pages 7 & 8 are Blank) 7

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separately computed in figuring the E. Exemption. Enter the greater of a tax year beginning after 1986 that are ATNOL). For example, the limitation of $1,000 or the child’s share of the treated under section 904(c) as paid or nonbusiness deductions to the amount unused parental minimum tax accrued in a tax year beginning before of nonbusiness income must be exemption, if any (see below) 1987. Enter on line 10 of Form 1116 separately computed in figuring the F. Add lines D and E your alternative minimum foreign tax ATNOL, using only nonbusiness income G. Enter the smaller of line C or line credit carryover, and on line 17 of Form F here and on line 16 and deductions that are included in 1116, enter the alternative minimum computing AMTI. Earned income.—Earned income taxable income from line 11 of Form For loss years beginning before 1987, includes wages, tips, and other 6251. On line 19 of Form 1116, enter see section 56(d)(2)(B) to refigure your payments received for personal services the amount from line 18 of Form 6251. ATNOLD. performed. Generally, earned income is 4. Complete Part IV of Form 1116. the amount reported on Form 1040, line Your ATNOLD may be limited. To The foreign tax credit from line 32 of 7; Form 1040A, line 7; or Form 1040NR, compute the ATNOLD limitation, first Form 1116 used for AMT purposes is lines 8, 13, and 20. Earned income also multiply line 7 by 90%. Then, reduce the limited to the tax on line 18 of Form includes the amount from line 31 of result by the amount, if any, on line 8. 6251 minus 10% of what the tax on line Schedule C or line 3 of Schedule C-EZ Enter on line 10 the smaller of the 18 would have been if lines 8 and 10 of for statutory employees. See the ATNOLD or the ATNOLD limitation. Any Form 6251 had been zero. If you have instructions for Schedule C (Form 1040). ATNOL not used because of the no entry on both lines 8 and 10 of Form ATNOLD limitation can be carried back Note: If the child is self-employed, 6251, enter on line 19 of Form 6251 the or forward. See section 172(b) for earned income also includes the amount smaller of 90% of line 18 of Form 6251 details. The treatment of ATNOLs does from Schedule SE, Section A, line 3, or or the amount from line 32 of Form not affect your regular tax NOL. Section B, lines 3 and 4b, minus any 1116. If either line 8 or 10 of Form 6251 amount reported on Form 1040, line 25. has an amount, for purposes of this line, Note: If you elected under section recompute what your tax on line 18 172(b)(3) to forego the carryback period Exemption.—The unused parental would have been if lines 8 and 10 were for regular tax purposes, the election will minimum tax exemption is the excess, if zero. Multiply that amount by 10% and also apply for the AMT. any, of the parent’s minimum tax exemption over the parent’s AMTI. The subtract the result from the tax on line Line 11—Alternative child’s share is determined by dividing 18. Enter the smaller of that amount or the child’s AMTI by the sum of the AMTI the amount from line 32 of Form 1116 Minimum Taxable Income of all of the parent’s children under age on line 19 of Form 6251. If you are married filing a separate return 14 and multiplying the result by the If your foreign tax credit is limited for and the amount on line 11 is more than unused parental minimum tax AMT purposes, the unused amount can $155,000, you must enter the amount exemption. See section 59(j). If the be carried back or forward according to from line F below on line 11 instead. child’s parents are married and file section 904(c). separate returns, the above rule applies A. Enter the amount from line 11 $155,000 to the parent with the greater AMTI. If Line 22—Alternative B. Maximum amount the child’s parents are not married, the C. Subtract line B from line A Minimum Tax D. Multiply line C by 25% (.25) above rule applies to the custodial parent. If you are completing this form for a E. Enter the smaller of line D or child who was under age 14 on January $20,000 1, 1993 (the line 16 worksheet was F. Add lines A and E. Enter here and Line 19—Alternative replace the amount on line 11 of completed), and line 20 is more than line Form 6251 with this amount Minimum Tax Foreign Tax 21, get Form 8803, Limit on Alternative Credit Minimum Tax for Children Under Age 14. Using Form 8803 may reduce or Line 16—Exemption Your AMT foreign tax credit is your eliminate the child’s AMT if: foreign tax credit refigured as follows: If you are completing this form for a ● The child’s parent has regular tax that child who was under age 14 on January 1. Complete and attach a separate is more than the parent’s tentative 1, 1993, and at least one of the child’s Form 1116, Foreign Tax Credit, for each minimum tax (line 21 is more than line parents was alive on December 31, separate limitation specified at the top of 20 if the parent completed Form 6251); 1992, use the worksheet below to figure Form 1116 to help you figure your AMT or the amount to enter on line 16. To the foreign tax credit. Write across the top Another child of the parent who was left of the entry space on line 16, write of each Form 1116–“Alt. Min. Tax.” ● under age 14 on January 1, 1993, has “Exemption Worksheet.” 2. Complete Part I using only income regular tax that is more than that child’s Line 16 Worksheet For Computing and deductions allowed for AMT tentative AMT. Minor Child’s AMT Exemption purposes attributable to sources outside the United States. If Form 8803 is attached, Form 6251 must also be attached, even if no AMT A. Enter the amount from line 12 3. Complete Part III, but do not enter is due. B. Enter the amount from line 15 on line 9 any taxes taken into account in C. Subtract line B from line A. If zero or less, enter -0- D. Earned income. Enter the child’s earned income (see below)

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