Instructions for IRS Form 6251 Alternative Minimum Tax-individuals 2017

January 1, 2017 "Instructions For Irs Form 6251 - Alternative Minimum Tax'-individuals" contain the latest filing requirements for the IRS-issued Form 6251. Download your copy of the instructions by clicking the link below.

IRS Form 6251 is tax form released and collected by the Internal Revenue Service of the United States.

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2017
Department of the Treasury
Internal Revenue Service
Instructions for Form 6251
Alternative Minimum Tax—Individuals
married filing jointly or qualifying
amount these benefits can be used to
Section references are to the Internal Revenue
Code unless otherwise noted.
widow(er); $42,250 if married filing
reduce total tax.
separately).
General Instructions
Also use Form 6251 to figure your
AMT tax brackets. For 2017, the 26%
tentative minimum tax (Form 6251,
tax rate applies to the first $187,800
line 33). You may need to know that
Future Developments
($93,900 if married filing separately) of
amount to figure the tax liability limit on
For the latest information about
taxable excess (the amount on line 30).
the credits listed under
Who Must
File.
developments related to Form 6251 and
This change is reflected in lines 31, 42,
its instructions, such as legislation
Figuring AMT Amounts
and 63.
enacted after they were published, go to
For the AMT, certain items of income,
Limit on itemized deductions. You
IRS.gov/Form6251.
deductions, etc., receive different tax
can’t deduct all of your itemized
treatment than for the regular tax.
deductions for regular tax purposes if
What's New
Therefore, you will need to figure items
your adjusted gross income is more
for the AMT differently than you figured
6251 instructions reissued. The
than:
Instructions for Form 6251 have been
them for the regular tax. These
$156,900 if married filing separately,
instructions will help you figure AMT
revised and reissued due to recent
$261,500 if single,
items by using the amount you
legislation that extended certain tax
$287,650 if head of household, or
benefits. These tax benefits include the
calculated for the regular tax and
$313,800 if married filing jointly or
refiguring it for the AMT. In some cases,
following.
qualifying widow(er).
it is easiest to refigure an item for AMT
Alternative fuel vehicle refueling
This limit doesn’t apply for the AMT.
property credit.
by completing a tax form or worksheet a
See the instructions for line 6.
second time using additional AMT
Deduction for mortgage insurance
Who Must File
instructions. These instructions refer to
premiums.
References to these tax benefits have
such a form or worksheet as an “AMT”
Attach Form 6251 to your return if any of
been added back to these instructions
version. If you do complete an AMT
the following statements is true.
version of a form or worksheet, don’t
accordingly.
1. Form 6251, line 31, is greater
attach it to your tax return unless
The instructions for reporting a net
than line 34.
instructed to do so. For example, you
qualified disaster loss also have been
2. You claim any general business
may have to attach an AMT Form 1116,
revised.
credit, and either line 6 (in Part I) or
Foreign Tax Credit, to your return; see
Disaster tax relief. Disaster tax relief
line 25 of Form 3800 is more than zero.
the instructions for line 32.
was enacted for those impacted by
3. You claim the qualified electric
As you figure some deductions and
certain Presidentially declared
vehicle credit (Form 8834), the personal
credits for the AMT, carrybacks or
disasters. The tax benefits provided by
use part of the alternative fuel vehicle
carryforwards to other tax years may be
this relief include a deduction against
refueling property credit (Form 8911), or
different than what you figured for the
AMT of any net qualified disaster loss,
the credit for prior year minimum tax
regular tax. Examples are investment
even if you are claiming the standard
(Form 8801).
interest expense, a net operating loss, a
deduction.
4. The total of Form 6251, lines 8
capital loss, a passive activity loss, and
To see if you were impacted by one
through 27, is negative and line 31
the foreign tax credit. Your at-risk limits
of the Presidentially declared disasters
would be greater than line 34 if you did
and basis amounts also may differ for
eligible for this relief or to get more
not take into account lines 8 through 27.
the AMT.
information about disaster tax relief, see
Pub. 976.
Purpose of Form
Recordkeeping
No AMT adjustment for medical ex-
Use Form 6251 to figure the amount, if
You must keep records to support items
penses deducted on Schedule A
any, of your alternative minimum tax
reported on Form 6251 in case the IRS
(Form 1040). Public Law 115-97
(AMT). The AMT is a separate tax that
has questions about them. If the IRS
extended the lower 7.5% adjusted gross
is imposed in addition to your regular
examines your tax return, you may be
income threshold for deducting medical
tax. It applies to taxpayers who have
asked to explain the items reported.
expenses on Schedule A (Form 1040)
certain types of income that receive
Good records will help you explain any
to all taxpayers for 2017. Line 2 shows
favorable treatment, or who qualify for
item and arrive at the correct AMT.
as "Reserved for future use" because no
certain deductions, under the tax law.
Keep records that show how you
AMT adjustment for this lower rate is
These tax benefits can significantly
figured income, deductions, etc. for the
required under the new law for 2017.
reduce the regular tax of some
AMT. Also keep records of any items
taxpayers with higher economic
Exemption amount. The exemption
that you used to figure the AMT that
incomes. The AMT sets a limit on the
amount on Form 6251, line 29, has
differ from what you used to figure the
increased to $54,300 ($84,500 if
regular tax. For example, you will need
Feb 23, 2018
Cat. No. 64277P
2017
Department of the Treasury
Internal Revenue Service
Instructions for Form 6251
Alternative Minimum Tax—Individuals
married filing jointly or qualifying
amount these benefits can be used to
Section references are to the Internal Revenue
Code unless otherwise noted.
widow(er); $42,250 if married filing
reduce total tax.
separately).
General Instructions
Also use Form 6251 to figure your
AMT tax brackets. For 2017, the 26%
tentative minimum tax (Form 6251,
tax rate applies to the first $187,800
line 33). You may need to know that
Future Developments
($93,900 if married filing separately) of
amount to figure the tax liability limit on
For the latest information about
taxable excess (the amount on line 30).
the credits listed under
Who Must
File.
developments related to Form 6251 and
This change is reflected in lines 31, 42,
its instructions, such as legislation
Figuring AMT Amounts
and 63.
enacted after they were published, go to
For the AMT, certain items of income,
Limit on itemized deductions. You
IRS.gov/Form6251.
deductions, etc., receive different tax
can’t deduct all of your itemized
treatment than for the regular tax.
deductions for regular tax purposes if
What's New
Therefore, you will need to figure items
your adjusted gross income is more
for the AMT differently than you figured
6251 instructions reissued. The
than:
Instructions for Form 6251 have been
them for the regular tax. These
$156,900 if married filing separately,
instructions will help you figure AMT
revised and reissued due to recent
$261,500 if single,
items by using the amount you
legislation that extended certain tax
$287,650 if head of household, or
benefits. These tax benefits include the
calculated for the regular tax and
$313,800 if married filing jointly or
refiguring it for the AMT. In some cases,
following.
qualifying widow(er).
it is easiest to refigure an item for AMT
Alternative fuel vehicle refueling
This limit doesn’t apply for the AMT.
property credit.
by completing a tax form or worksheet a
See the instructions for line 6.
second time using additional AMT
Deduction for mortgage insurance
Who Must File
instructions. These instructions refer to
premiums.
References to these tax benefits have
such a form or worksheet as an “AMT”
Attach Form 6251 to your return if any of
been added back to these instructions
version. If you do complete an AMT
the following statements is true.
version of a form or worksheet, don’t
accordingly.
1. Form 6251, line 31, is greater
attach it to your tax return unless
The instructions for reporting a net
than line 34.
instructed to do so. For example, you
qualified disaster loss also have been
2. You claim any general business
may have to attach an AMT Form 1116,
revised.
credit, and either line 6 (in Part I) or
Foreign Tax Credit, to your return; see
Disaster tax relief. Disaster tax relief
line 25 of Form 3800 is more than zero.
the instructions for line 32.
was enacted for those impacted by
3. You claim the qualified electric
As you figure some deductions and
certain Presidentially declared
vehicle credit (Form 8834), the personal
credits for the AMT, carrybacks or
disasters. The tax benefits provided by
use part of the alternative fuel vehicle
carryforwards to other tax years may be
this relief include a deduction against
refueling property credit (Form 8911), or
different than what you figured for the
AMT of any net qualified disaster loss,
the credit for prior year minimum tax
regular tax. Examples are investment
even if you are claiming the standard
(Form 8801).
interest expense, a net operating loss, a
deduction.
4. The total of Form 6251, lines 8
capital loss, a passive activity loss, and
To see if you were impacted by one
through 27, is negative and line 31
the foreign tax credit. Your at-risk limits
of the Presidentially declared disasters
would be greater than line 34 if you did
and basis amounts also may differ for
eligible for this relief or to get more
not take into account lines 8 through 27.
the AMT.
information about disaster tax relief, see
Pub. 976.
Purpose of Form
Recordkeeping
No AMT adjustment for medical ex-
Use Form 6251 to figure the amount, if
You must keep records to support items
penses deducted on Schedule A
any, of your alternative minimum tax
reported on Form 6251 in case the IRS
(Form 1040). Public Law 115-97
(AMT). The AMT is a separate tax that
has questions about them. If the IRS
extended the lower 7.5% adjusted gross
is imposed in addition to your regular
examines your tax return, you may be
income threshold for deducting medical
tax. It applies to taxpayers who have
asked to explain the items reported.
expenses on Schedule A (Form 1040)
certain types of income that receive
Good records will help you explain any
to all taxpayers for 2017. Line 2 shows
favorable treatment, or who qualify for
item and arrive at the correct AMT.
as "Reserved for future use" because no
certain deductions, under the tax law.
Keep records that show how you
AMT adjustment for this lower rate is
These tax benefits can significantly
figured income, deductions, etc. for the
required under the new law for 2017.
reduce the regular tax of some
AMT. Also keep records of any items
taxpayers with higher economic
Exemption amount. The exemption
that you used to figure the AMT that
incomes. The AMT sets a limit on the
amount on Form 6251, line 29, has
differ from what you used to figure the
increased to $54,300 ($84,500 if
regular tax. For example, you will need
Feb 23, 2018
Cat. No. 64277P
Line 4—Home Mortgage
to separately figure and track certain
Specific Instructions
carrybacks, carryforwards, basis
Interest Adjustment
amounts, depreciation, and loss
If you owe AMT, you may be
Complete the
Home Mortgage Interest
limitation amounts that differ between
able to lower your total tax
Adjustment Worksheet
to figure the
TIP
the AMT and the regular tax.
(regular tax plus AMT) by
amount to enter on this line. The
claiming itemized deductions on Form
If you refigure an item for AMT by
definitions of certain terms used in the
1040, even if your total itemized
completing an AMT version of a form or
worksheet are as follows.
deductions are less than the standard
worksheet, keep a copy of that AMT
Eligible mortgage. An eligible
deduction. This is because the standard
form or worksheet for your records.
mortgage is a mortgage whose
deduction isn’t allowed for the AMT and,
proceeds were used to buy, build, or
Partners and Shareholders
if you claim the standard deduction on
substantially improve your main home
Form 1040, you can’t claim itemized
If you are a partner in a partnership or a
or a second home that is a qualified
deductions for the AMT.
shareholder in an S corporation, see
dwelling. A mortgage whose proceeds
Schedule K-1 and its instructions to
were used to refinance another
Part I—Alternative
figure your adjustments or preferences
mortgage isn’t an eligible mortgage.
from the partnership or S corporation to
Minimum Taxable Income
Qualified dwelling. A qualified
include on Form 6251.
(AMTI)
dwelling is any house, apartment,
Nonresident Aliens
condominium, or mobile home not used
To avoid duplication, any
on a transient basis.
If you are a nonresident alien and you
adjustment or preference for
!
Family. Family includes only your
disposed of U.S. real property interests
line 5, 19, or 20 or for a tax
CAUTION
brothers and sisters (whether by whole
at a gain, you must make a special
shelter farm activity on line 27 must not
or half blood), your spouse, your
computation. Fill in Form 6251 through
be taken into account in figuring the
ancestors, and your lineal descendants.
line 30. If your net gain from the
amount to enter for any other
disposition of U.S. real property
adjustment or preference.
Example. In 2017, Dave and
interests and the amount on line 28 are
Jennifer paid $10,000 in interest on a
Line 1
both greater than the tentative amount
mortgage they took out to buy their
you figured for line 30, replace the
If Form 1040, line 43, includes a write-in
home (an eligible mortgage). In May
amount on line 30 with the smaller of
amount (such as a capital construction
2017, they refinanced that mortgage
that net gain or the amount on line 28.
fund deduction for commercial
and paid $9,000 in interest through the
Also, enter “RPI” on the dotted line next
fishermen), adjust line 1 by the write-in
rest of the year. The balance of the new
to line 30. Otherwise, don’t change
amount.
mortgage is the same as the balance of
line 30.
the old mortgage. In July 2017, they
Net qualified disaster loss. If you
obtained a home equity loan on their
Credit for Prior Year
filed Schedule A just to claim an
home and used the proceeds to buy a
increased standard deduction on Form
Minimum Tax
new car. They paid $5,000 in interest on
1040 due to a loss you suffered related
the home equity loan in 2017. They
See Form 8801, Credit for Prior Year
to property in a Presidentially declared
enter the following amounts on the
Minimum Tax—Individuals, Estates, and
disaster area, then enter the amount
Home Mortgage Interest Adjustment
Trusts, if you paid AMT for 2016 or you
from Form 1040, line 41, even though it
Worksheet: $24,000 on line 1 ($10,000
had a minimum tax credit carryforward
has been reduced by the standard
plus $9,000 plus $5,000), $10,000 on
on your 2016 Form 8801. If you pay
deduction, and go to line 7. You will
line 2, $9,000 on line 3, -0- on line 4,
AMT for 2017, you may be able to take
include the amount of the standard
$19,000 on line 5 ($10,000 plus
a credit on Form 8801 for 2018.
deduction (before it was increased by
$9,000), and $5,000 on line 6 ($24,000
any net qualified disaster loss) on
Optional Write-Off for
minus $19,000).
line 27.
Certain Expenditures
Line 5—Miscellaneous
Form 1040NR. If you are filing Form
Deductions
There is no AMT adjustment for the
1040NR, enter the amount from Form
following items if you elect for the
1040NR, line 39. If less than zero, enter
If you are filing Form 1040NR, enter the
regular tax to deduct them ratably over
as a negative amount.
amount from Schedule A (Form
the period of time shown.
1040NR), line 13.
Line 2
Circulation expenditures—3 years
Line 6—Overall Limit on
(section 173).
Line 2 is reserved for future use.
Itemized Deductions
Research and experimental
Line 3—Taxes
expenditures—10 years (section
If Form 1040, line 38, is over $261,500
Enter the amount of all taxes from
174(a)).
($287,650 if head of household;
Schedule A (Form 1040), line 9, except
Mining exploration and development
$313,800 if married filing jointly or
any generation-skipping transfer taxes
costs—10 years (sections 616(a) and
qualifying widow(er); or $156,900 if
on income distributions.
617(a)).
married filing separately), enter the
Intangible drilling costs—60 months
Form 1040NR. If you are filing Form
amount from line 9 of the Itemized
(section 263(c)).
1040NR, enter the amount of all taxes
Deductions Worksheet in the
from Schedule A (Form 1040NR), line 1,
Instructions for Schedule A (Form
For information on making the
except any generation-skipping transfer
1040). Enter it as a negative amount.
election, see section 59(e) and
taxes on income distributions.
Regulations section 1.59-1. Also see
Pub. 535, Business Expenses.
-2-
Instructions for Form 6251 (2017)
If Form 1040, line 38, isn’t more than
foreign real property taxes. Enter the
private activity bonds were includible in
the amount listed above for your filing
total as a negative amount. If you
gross income.
status, enter -0-.
include an amount from Form 1040,
Step 2. Enter your AMT disallowed
line 21, you must enter a description
Form 1040NR. Enter the amount from
investment interest expense from 2016
and the amount next to the entry space
line 9 of the Itemized Deductions
on line 2. Complete line 3.
for line 7. For example, if you include a
Worksheet in the instructions for Form
Step 3. When completing Part II,
refund of real property taxes, enter “real
1040NR if you are filing Form 1040NR
refigure the following amounts, taking
property” and the amount next to the
and line 37 of Form 1040NR is over the
into account all adjustments and
entry space.
amount listed below for your filing
preferences.
status:
Line 8—Investment Interest
Gross income from property held for
$261,500 and you checked filing
If you filled out Form 4952, Investment
investment.
status box 1 or 2,
Interest Expense Deduction, for your
Net gain from the disposition of
$156,900 and you checked filing
regular tax, you will need to fill out a
property held for investment.
status box 3, 4, or 5, or
second Form 4952 for the AMT as
Net capital gain from the disposition
$313,800 and you checked filing
follows.
of property held for investment.
status box 6.
Investment expenses.
Step 1. Follow the Form 4952
Enter it as a negative amount.
instructions for line 1, but also include
Include on line 4a any tax-exempt
If Form 1040NR, line 37, isn’t more
the following amounts when completing
interest income from private activity
than the amount just listed for your filing
line 1.
bonds that must be included on Form
status, enter -0-.
Any interest expense on Form 6251,
6251, line 12. If you have any
Line 7—Refund of Taxes
line 4, that was paid or accrued on
investment expenses that would have
indebtedness attributable to property
been deductible if the interest on the
Include any refund from Form 1040,
held for investment within the meaning
bonds were includible in gross income
line 10 (or Form 1040NR, line 11), that
of section 163(d)(5) (for example,
for the regular tax, you can use them to
is attributable to state or local income
interest on a home equity loan whose
reduce the amount on line 4a or include
taxes. Also include any refunds
proceeds were invested in stocks or
them on line 5.
received in 2017 and included in income
bonds).
on Form 1040, line 21, that are
On line 4g, enter the smaller of:
Any interest that would have been
attributable to state or local personal
1. The amount from line 4g of your
deductible if tax-exempt interest on
property taxes or general sales taxes,
regular tax Form 4952, or
foreign income taxes, or state, local, or
2. The total of lines 4b and 4e of this
AMT Form 4952.
Home Mortgage Interest Adjustment
Step 4. Complete Part III.
Keep for Your Records
Worksheet—Line 4
Enter on Form 6251, line 8, the
difference between line 8 of your AMT
1. Enter the total of the home mortgage interest you deducted on lines 10 through
Form 4952 and line 8 of your regular tax
12 of Schedule A (Form 1040) and any mortgage insurance premiums you
Form 4952. If your AMT expense is
deducted on line 13 of Schedule A (Form 1040) . . . . . . . . . . . . . . . . . . . . . 1.
greater, enter the difference as a
2. Enter the part, if any, of the interest included on line 1 above
negative amount.
that was paid on an eligible mortgage (defined in the line 4
instructions). Include any mortgage insurance premiums
Investment interest expense that
included on line 1 above that were paid in connection with
isn’t an itemized deduction. If you
an eligible mortgage . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.
didn’t itemize deductions and you had
3. Enter the part, if any, of the interest included on line 1 above
investment interest expense, don’t enter
that was paid on a mortgage whose proceeds were used in
an amount on Form 6251, line 8, unless
a refinancing (including a second or later refinancing) of an
you reported investment interest
eligible mortgage. Include any mortgage insurance
expense on Schedule E, Supplemental
premiums included on line 1 above that were paid in
connection with such a mortgage. Don’t include any interest
Income and Loss (Form 1040). If you
paid on (or any mortgage insurance premiums paid in
did, follow the steps above for
connection with) the part of the balance of the new
completing Form 4952. Allocate the
mortgage that exceeded the balance of the original eligible
investment interest expense allowed on
mortgage immediately before it was refinanced (or, if
line 8 of the AMT Form 4952 in the
smaller, the balance of any prior refinanced mortgage
same way you did for the regular tax.
immediately before that mortgage was refinanced) . . . . . . 3.
Enter on Form 6251, line 8, the
4. Enter the part, if any, of the interest included on line 1 above
difference between the amount allowed
that was paid on a mortgage:
on Schedule E for the regular tax and
• Taken out before July 1, 1982, and
the amount allowed on Schedule E for
• Secured, at the time the mortgage was taken out, by your
the AMT.
main home or a qualified dwelling used by you or your
family (see definitions).
Line 9—Depletion
Don’t include any amount entered on line 2 or line 3
above . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.
Refigure your depletion deduction for
the AMT. To do so, use only income
5. Add lines 2 through 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.
and deductions allowed for the AMT
6. Subtract line 5 from line 1 and enter the result on Form 6251, line 4 . . . . . . . . 6.
when refiguring the limit based on
taxable income from the property under
Instructions for Form 6251 (2017)
-3-
section 613(a) and the limit based on
line 9 amount and treating line 11 as if it
The treatment of ATNOLs doesn’t
taxable income, with certain
were zero. This is your AMTI figured
affect your regular tax NOL. However, if
adjustments, under section 613A(d)(1).
without regard to the ATNOLD. Add any
you elected under section 172(b)(3) to
Also, your depletion deduction for
domestic production activities deduction
forgo the carryback period for the
mines, wells, and other natural deposits
to this tentative total. Your ATNOLD is
regular tax, the election also applies for
under section 611 is limited to the
limited to 90% of the result.
the AMT.
property's adjusted basis at the end of
Line 12—Interest From Private
However, the 90% limit doesn’t apply
the year, as refigured for the AMT,
Activity Bonds
to an ATNOL that is attributable to
unless you are an independent
qualified disaster losses before
producer or royalty owner claiming
Enter on line 12 interest income from
December 19, 2004 (as defined in
percentage depletion for oil and gas
“specified private activity bonds”
section 172(j)), qualified Gulf
wells under section 613A(c). Figure this
reduced (but not below zero) by any
Opportunity Zone losses (as defined in
limit separately for each property. When
deduction that would have been
section 1400N(k)(2)), qualified recovery
refiguring the property's adjusted basis,
allowable if the interest were includible
assistance losses (as defined in Pub.
take into account any AMT adjustments
in gross income for the regular tax. Each
4492-A, Information for Taxpayers
you made this year or in previous years
payer of this type of interest should
Affected by the May 4, 2007, Kansas
that affect basis (other than current year
send you a Form 1099-INT showing the
Storms and Tornadoes), qualified
depletion).
amount of this interest in box 9.
disaster recovery assistance losses (as
Enter the difference between the
Generally, the term “specified private
defined in Pub. 4492-B, Information for
regular tax and AMT deduction. If the
activity bond” means any private activity
Affected Taxpayers in the Midwestern
AMT deduction is more than the regular
bond (as defined in section 141) the
Disaster Areas), or a 2008 or 2009 loss
tax deduction, enter the difference as a
interest on which isn’t includible in gross
that you elected to carry back more than
negative amount.
income for the regular tax, if the bond
2 years under section 172(b)(1)(H).
was issued after August 7, 1986. But
Therefore, if an ATNOL that is carried
Line 10—Net Operating Loss
specified private activity bonds
back or carried forward to the tax year is
Deduction
generally don’t include any bonds
attributable to any of those losses, the
If you are filing Form 1040NR, enter
issued in 2009 or 2010. See section
ATNOLD for the tax year is limited to the
your net operating loss deduction from
57(a)(5) for other exceptions and more
sum of:
Form 1040NR, line 21, as a positive
details.
1. The smaller of:
amount.
Don’t include interest on qualified
a. The sum of the ATNOL
Line 11—Alternative Tax Net
Gulf Opportunity Zone bonds or
carrybacks and carryforwards to the tax
Operating Loss Deduction
qualified Midwestern disaster area
year attributable to net operating losses
bonds.
other than those losses described in 2a
(ATNOLD)
below, or
Exempt-interest dividends paid by a
The ATNOLD is the sum of the
b. 90% of AMTI for the tax year
mutual fund or other regulated
alternative tax net operating loss
(figured without regard to the ATNOLD
investment company are treated as
(ATNOL) carrybacks and carryforwards
and any domestic production activities
interest income on specified private
to the tax year, subject to the limitation
deduction, as discussed earlier), plus
activity bonds to the extent the
explained later. Figure your ATNOLD as
dividends are attributable to interest on
follows.
2. The smaller of:
the bonds received by the company,
a. The sum of the ATNOL
Your ATNOL for a loss year is the
minus an allocable share of the
carrybacks and carryforwards to the tax
excess of the deductions allowed for
expenses paid or incurred by the
year attributable to qualified disaster
figuring AMTI (excluding the ATNOLD)
company in earning the interest. This
losses, qualified Gulf Opportunity Zone
over the income included in AMTI.
amount should be reported to you on
losses, qualified recovery assistance
Figure this excess with the
Form 1099-DIV in box 11.
losses, qualified disaster recovery
modifications in section 172(d), taking
assistance losses, and any 2008 or
into account your AMT adjustments and
If you are filing Form 8814, Parents'
2009 loss that you elected to carry back
preferences (that is, the section 172(d)
Election To Report Child's Interest and
more than 2 years under section 172(b)
modifications must be separately
Dividends, include on this line any
(1)(H), or
figured for the ATNOL). For example,
tax-exempt interest income from line 1b
the limitation of nonbusiness deductions
of that form that is a preference item.
b. 100% of AMTI for the tax year
to the amount of nonbusiness income
(figured without regard to the ATNOLD
Line 13—Qualified Small
must be separately figured for the
and any domestic production activities
Business Stock
ATNOL, using only nonbusiness income
deduction, as discussed earlier)
and deductions that are included in
If you claimed the exclusion under
reduced by the amount determined
AMTI.
section 1202 for gain on qualified small
under (1).
business stock acquired before
Your ATNOLD may be limited. To
Enter on line 11 the smaller of the
September 28, 2010 and held more
figure the ATNOLD limitation, you must
ATNOLD or the ATNOLD limitation.
than 5 years, multiply the excluded gain
first figure your AMTI without regard to
Enter it as a negative amount.
(as shown on Form 8949 in column (g))
the ATNOLD and any domestic
by 7% (0.07). Enter the result on line 13
production activities deduction. To do
Any ATNOL not used may be carried
as a positive amount.
this, first figure a tentative amount for
back 2 years or forward up to 20 years.
line 9 by treating line 11 as if it were
In some cases, the carryback period is
zero. Next, figure a tentative total of
longer than 2 years; for details, see Pub.
lines 1 through 27 using the tentative
536.
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Instructions for Form 6251 (2017)
Line 14—Exercise of Incentive
multiply the amount in box 4, $25, by the
AMT capital loss carryover, fill out an
100 shares in box 5. The result is
AMT Capital Loss Carryover Worksheet
Stock Options
$2,500, the fair market value of all the
in the Schedule D instructions.
For the regular tax, no income is
shares. Then multiply the amount in
For each of the four items listed
recognized when an incentive stock
box 3, $10, by the 100 shares in box 5.
earlier, figure the difference between the
option (ISO), as defined in section
The result is $1,000, the amount you
amount included in taxable income for
422(b), is exercised. However, this rule
paid for all the shares. Your adjustment
the regular tax and the amount included
doesn’t apply for the AMT. Instead, you
is $1,500 ($2,500 − $1,000). Enter it on
in income for the AMT. Include the
generally must include on line 14 the
Form 6251, line 14.
difference as a negative amount on
excess, if any, of:
line 17 if (a) both the AMT and regular
Line 16—Large Partnerships
1. The fair market value of the stock
tax amounts are zero or more and the
If you were a partner in an electing large
acquired through exercise of the option
AMT amount is less than the regular tax
partnership, enter the amount from
(determined without regard to any lapse
amount or (b) the AMT amount is a loss,
Schedule K-1 (Form 1065-B), box 6.
restriction) when your rights in the
and the regular tax amount is a smaller
acquired stock first become transferable
Take into account any amount from
loss or is zero or more.
box 5 on Form 6251, line 19.
or when these rights are no longer
Enter on line 17 the combined
subject to a substantial risk of forfeiture,
Line 17—Disposition of
adjustments for the four items listed
over
Property
earlier.
2. The amount you paid for the
Your AMT gain or loss from the
Example. On March 13, 2016,
stock, including any amount you paid for
disposition of property may be different
Victor Ash, whose filing status is single,
the ISO used to acquire the stock.
from your gain or loss for the regular tax.
paid $20,000 to exercise an incentive
Even if your rights in the stock aren’t
This is because the property may have
stock option (which was granted to him
transferable and are subject to a
a different adjusted basis for the AMT.
on January 3, 2015) to buy 200 shares
substantial risk of forfeiture, you may
Use this line to report any AMT
of stock worth $200,000. The $180,000
elect to include in AMT income the
adjustment resulting from refiguring:
difference between his cost and the
excess of the stock's fair market value
value of the stock at the time he
1. Gain or loss from the sale,
(determined without regard to any lapse
exercised the option isn’t taxable for the
exchange, or involuntary conversion of
restriction) over the exercise price upon
regular tax. His regular tax basis in the
property reported on Form 4797, Sales
the transfer to you of the stock acquired
stock at the end of 2016 is $20,000. For
of Business Property;
through exercise of the option. You
the AMT, however, Ash must include
2. Casualty gain or loss to business
must make the election by the 30th day
the $180,000 as an adjustment on his
or income-producing property reported
after the date of the transfer. See Pub.
2016 Form 6251. His AMT basis in the
on Form 4684, Casualties and Thefts;
525, Taxable and Nontaxable Income,
stock at the end of 2016 is $200,000.
for more details.
3. Ordinary income from the
On January 18, 2017, Ash sold 100
disposition of property not already taken
of the shares for $75,000. Because Ash
If you acquired stock by exercising
into account in (1) or (2) or on any other
didn’t hold these shares more than 1
an ISO and you disposed of that stock in
line on Form 6251, such as a
year, that sale is a disqualifying
the same year, the tax treatment under
disqualifying disposition of stock
disposition. For the regular tax, Ash has
the regular tax and the AMT is the
acquired in a prior year by exercising an
ordinary income of $65,000 ($75,000
same, and no adjustment is required.
incentive stock option; and
minus his $10,000 basis in the 100
Increase your AMT basis in any stock
4. Capital gain or loss (including any
shares). Ash has no capital gain or loss
acquired through the exercise of an ISO
carryover that is different for the AMT)
for the regular tax resulting from the
by the amount of the adjustment. Keep
reported on Form 8949, Sales and
sale. For the AMT, Ash has no ordinary
adequate records for both the AMT and
Other Dispositions of Capital Assets, or
income, but has a short-term capital
regular tax so that you can figure your
Schedule D (Form 1040), Capital Gains
loss of $25,000 ($75,000 minus his
adjustment. See the instructions for
and Losses.
$100,000 AMT basis in the 100 shares).
line 17.
On April 21, 2017, Ash sold the other
First figure any ordinary income
Form 3921. If you received a Form
100 shares for $60,000. Because he
adjustment related to (3) above. Then,
3921, it may help you figure your
held the shares for more than 1 year
refigure Form 4684, Form 4797, Form
adjustment.
and more than 2 years had passed
8949, and Schedule D for the AMT, if
since the option was granted to him, the
applicable, by taking into account any
Example. You exercised an ISO to
sale isn’t a disqualifying disposition. For
adjustments you made this year or in
acquire 100 shares of stock in 2017.
the regular tax, Ash has a long-term
previous years that affect your basis or
Your rights in the acquired stock first
capital gain of $50,000 ($60,000 minus
otherwise result in a different amount for
became transferable on the date you
his regular tax basis of $10,000). For the
the AMT.
exercised the ISO and weren’t subject
AMT, Ash has a long-term capital loss
to a substantial risk of forfeiture. You
If you have a capital loss after
of $40,000 ($60,000 minus his AMT
didn’t pay anything for the ISO. You
refiguring Schedule D for the AMT,
basis of $100,000).
didn’t sell the acquired stock during
apply the $3,000 capital loss limitation
2017. You received a Form 3921 that
Ash has no other sales of stock or
separately to the AMT loss. Because
shows $10 in box 3 (the exercise price
other capital assets for 2017. Ash enters
the amount of your gains and losses
you paid for each share), $25 in box 4
a total negative adjustment of $118,000
may be different for the AMT, the
(the fair market value of each share on
on line 17 of his 2017 Form 6251,
amount of any capital loss carryover
the exercise date), and 100 shares in
figured as follows:
also may be different for the AMT. See
box 5 (the number of shares you
Ash figures a negative adjustment of
the following example. To figure your
acquired). To figure your adjustment,
$65,000 for the difference between the
Instructions for Form 6251 (2017)
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Download Instructions for IRS Form 6251 Alternative Minimum Tax-individuals 2017

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