Revised Proof Ok to Print Rtext sent (date) Requested (init. & date) (init. & date) Page 1 of 8 of Instructions for Form 6251 7 The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing. Department of the Treasury Internal Revenue Service Instructions for Form 6251 Alternative Minimum Tax—Individuals (Section references are to the Internal Revenue Code 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: c You are liable for the AMT, If you disposed of U.S. real property interests at a gain, see the instructions Specific Instructions c 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 c 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. Cat. No. 64277P Page 2 of 8 of Instructions for Form 6251 7 The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing. 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.