Userid: CPM Schema: Leadpct: 100% Pt. size: 9.5 Draft Ok to Print instrx AH XSL/XML Fileid: … ions/I6251/2020/A/XML/Cycle07/source (Init. & Date) _______ Page 1 of 13 14:42 - 8-Jan-2021 The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing. Department of the Treasury 2020 Internal Revenue Service Instructions for Form 6251 Alternative Minimum Tax—Individuals Section references are to the Internal Revenue 4. The total of Form 6251, lines 2c and basis amounts may also differ for Code unless otherwise noted. through 3, is negative and line 7 would the AMT. be greater than line 10 if you didn’t take General Instructions into account lines 2c through 3. Recordkeeping You must keep records to support items Future Developments Purpose of Form reported on Form 6251 in case the IRS For the latest information about Use Form 6251 to figure the amount, if has questions about them. If the IRS developments related to Form 6251 and any, of your alternative minimum tax examines your tax return, you may be its instructions, such as legislation (AMT). The AMT is a separate tax that asked to explain the items reported. enacted after they were published, go to is imposed in addition to your regular Good records will help you explain any IRS.gov/Form6251. tax. It applies to taxpayers who have item and arrive at the correct AMT. certain types of income that receive Keep records that show how you favorable treatment, or who qualify for What's New figured income, deductions, etc., for the certain deductions, under the tax law. AMT. Also keep records of any items Excess business loss limitation. These tax benefits can significantly that you used to figure the AMT that Recent legislation has repealed the reduce the regular tax of some differ from what you used to figure the excess business loss limitation of taxpayers with higher economic regular tax. For example, you will need noncorporate taxpayers (Form 461) for incomes. The AMT sets a limit on the to separately figure and track certain 2020 (and retroactively to 2018 and amount these benefits can be used to carrybacks, carryforwards, basis 2019). If you filed a 2018 or 2019 return reduce total tax. with the limitation, you can file an amounts, depreciation, and loss amended return, Form 1040-X. Also use Form 6251 to figure your limitation amounts that differ between tentative minimum tax (Form 6251, the AMT and the regular tax. Exemption amount. The exemption line 9). You may need to know that amount on Form 6251, line 5, has amount to figure the tax liability limit on If you refigure an item for AMT by increased to $72,900 ($113,400 if the credits listed under Who Must File, completing an AMT version of a form or married filing jointly or qualifying earlier. worksheet, keep a copy of that AMT widow(er); $56,700 if married filing form or worksheet for your records. separately). Figuring AMT Amounts Partners and Shareholders Also, the amount used to determine For the AMT, certain items of income, the phaseout of your exemption has deductions, etc., receive different tax If you are a partner in a partnership or a increased to $518,400 ($1,036,800 if treatment than for the regular tax. shareholder in an S corporation, see married filing jointly or qualifying Therefore, you will need to figure items Schedule K-1 and its instructions to widow(er)). for the AMT differently from how you figure your adjustments or preferences figured them for the regular tax. These from the partnership or S corporation to AMT tax brackets. For 2020, the 26% include on Form 6251. tax rate applies to the first $197,900 instructions will help you figure AMT ($98,950 if married filing separately) of items by using the amount you figured taxable excess (the amount on line 6). for the regular tax and refiguring it for Nonresident Aliens This change is reflected in lines 7, 18, the AMT. In some cases, it is easiest to If you are a nonresident alien and you and 39. refigure an item for AMT by completing disposed of U.S. real property interests a tax form or worksheet a second time at a gain, you must make a special Who Must File using additional AMT instructions. computation. Fill in Form 6251 through These instructions refer to such a form line 6. If your net gain from the Attach Form 6251 to your return if any of disposition of U.S. real property the following statements are true. or worksheet as an “AMT” version. If you do complete an AMT version of a interests and the amount on line 4 are 1. Form 6251, line 7, is greater than form or worksheet, don’t attach it to your both greater than the tentative amount line 10. tax return unless instructed to do so. For you figured for line 6, replace the 2. You claim any general business example, you may have to attach an amount on line 6 with the smaller of that credit, and either line 6 (in Part I) of AMT Form 1116, Foreign Tax Credit, to net gain or the amount on line 4. Also, Form 3800 or line 25 of Form 3800 is your return; see Line 8, later. enter “RPI” on the dotted line next to line 6. Otherwise, don’t change line 6. more than zero. As you figure some deductions and 3. You claim the qualified electric credits for the AMT, carrybacks or vehicle credit (Form 8834), the personal carryforwards to other tax years may be Credit for Prior Year use part of the alternative fuel vehicle different from what you figured for the Minimum Tax refueling property credit (Form 8911), or regular tax. Examples are investment See Form 8801, Credit for Prior Year the credit for prior year minimum tax interest expense, a net operating loss, a Minimum Tax—Individuals, Estates, and (Form 8801). capital loss, a passive activity loss, and Trusts, if you paid AMT for 2019 or you the foreign tax credit. Your at-risk limits had a minimum tax credit carryforward Jan 08, 2021 Cat. No. 64277P Page 2 of 13 Fileid: … ions/I6251/2020/A/XML/Cycle07/source 14:42 - 8-Jan-2021 The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing. on your 2019 Form 8801. If you pay line 15, is zero, subtract line 14 from deductible if tax-exempt interest on AMT for 2020, you may be able to take line 11 of Form 1040-NR and enter the private activity bonds were includible in a credit on Form 8801 for 2021. result. If less than zero, enter as a gross income. negative amount. Step 2. Enter your AMT disallowed Optional Write-off for Line 2a—Taxes investment interest expense from 2019 Certain Expenditures Enter the amount of all taxes from on line 2. Complete line 3. There is no AMT adjustment for the Schedule A (Form 1040), line 7, except Step 3. When completing Part II, following items if you elect for the any generation-skipping transfer taxes refigure the following amounts, taking regular tax to deduct them ratably over on income distributions. into account all adjustments and the period of time shown. 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 12. property held for investment. 174(a)). Net qualified disaster loss. If you • Net capital gain from the disposition • Mining exploration and development filed Schedule A just to claim an of property held for investment. costs—10 years (sections 616(a) and increased standard deduction on Form • Investment expenses. 617(a)). 1040 or Form 1040-SR due to a loss Include on line 4a any tax-exempt • Intangible drilling costs—60 months you suffered related to property in a interest income from private activity (section 263(c)). federally declared disaster area, then bonds that must be included on Form enter zero on line 2a and go to line 2b. For information on making the 6251, line 2g. If you have any You will include the amount of the election, see section 59(e) and investment expenses that would have standard deduction (before it was Regulations section 1.59-1. Also see been deductible if the interest on the increased by any net qualified disaster Pub. 535, Business Expenses. bonds were includible in gross income loss) on line 3. for the regular tax, you can use them to Specific Instructions Form 1040-NR. If you are filing Form reduce the amount on line 4a or include 1040-NR, enter the amount of all taxes them on line 5. If you owe AMT, you may be from Schedule A (Form 1040-NR), On line 4g, enter the smaller of: TIP able to lower your total tax line 1b, plus any foreign income taxes (regular tax plus AMT) by you are deducting on Schedule A 1. The amount from line 4g of your claiming itemized deductions on Form (instead of claiming a credit on Form regular tax Form 4952, or 1040 or Form 1040-SR, even if your 1116). Don’t include any 2. The total of lines 4b and 4e of this total itemized deductions are less than generation-skipping transfer taxes on AMT Form 4952.