Instructions For Form 6251 - Alternative Minimum Tax-Individuals

AMTFTC Carryback and

4. If the simplified limitation

AMT Schedule D or AMT Schedule D

election does not apply, complete

Tax Worksheet to complete lines 30,

Carryforward

lines 14 through 16 of the AMT Form

31, and 33 of Form 6251. Keep the

If your AMTFTC is limited, the unused

1116.

AMT Schedule D and worksheet for

amount may be carried back or

5. If you did not complete

your records, but do not attach the

forward according to sections

Schedule D (Form 1040) for the

AMT Schedule D to your tax return.

59(a)(2)(B) and 904(c).

regular tax and did not complete Part

If you completed Part III of

Simplified Limitation Election

III of Form 6251, enter the AMTI from

Schedule D for the regular tax but not

Form 6251, line 21, on line 17 of the

You may elect to use a simplified

Part IV, enter zero on Form 6251, line

AMT Form 1116 and go to 6 below.

section 904 limitation to figure your

37.

Otherwise, follow these steps to

AMTFTC. If you do, use your regular

Note: Do not decrease your section

complete, for the AMT, the

tax income for Form 1116, Part I,

1202 exclusion by the amount, if any,

Worksheet for Line 17 in the Form

instead of refiguring your foreign

on line 14m.

1116 instructions.

source income for the AMT, as

described earlier. You must make the

Line 39

a. Enter the amount from Form

election for the first tax year after

6251, line 21, on line 1 of the AMT

Generally, you may enter the amount

1997 for which you claim an

Worksheet for Line 17.

from Schedule D, line 29, on Form

AMTFTC. If you do not make the

b. Complete a Schedule D for the

6251, line 39. However, if your

election for that year, you may not

AMT as explained in the instructions

qualified 5-year gain is different for

make it for a later year. Once made,

for lines 30, 31, 33, and 37 below (or,

the AMT (for example, because of a

the election applies to all later tax

if you already completed an AMT

different basis), you must complete

years and may be revoked only with

Schedule D to complete Part III of

an AMT Qualified 5-Year Gain

IRS consent.

Form 6251, use that Schedule D).

Worksheet (on page D-8 of the

Next, enter the amount from Form

Schedule D instructions). If the

Part III—Line 24

6251, line 23, on line 20 of your AMT

amount on any line of the worksheet

Schedule D or line 1 of the AMT

Computation Using

is different for the AMT, use the AMT

Schedule D Tax Worksheet. Then,

amount instead of the regular tax

Maximum Capital Gains

complete lines 24 through 36 of the

amount. Enter the amount from line 7

AMT Schedule D (you may skip lines

of that worksheet on Form 6251, line

Rates

25, 31, and 33) or lines 10 through 33

39.

of the AMT Schedule D Tax

Lines 30, 31, 33, and 37

Worksheet (you may skip lines 15,

Paperwork Reduction Act Notice.

If you did not complete Schedule D

19, 21, 25, and 31).

We ask for the information on this

(Form 1040) because you reported

c. Complete the rest of the AMT

form to carry out the Internal

capital gain distributions directly on

Worksheet for Line 17 using amounts

Revenue laws of the United States.

Form 1040, line 13, then:

from the AMT Schedule D or AMT

•

You are required to give us the

Enter the amount of your capital

Schedule D Tax Worksheet.

information. We need it to ensure that

gain distributions on Form 6251, lines

6. Enter the amount from Form

you are complying with these laws

30 and 33,

6251, line 24, on the AMT Form

•

and to allow us to figure and collect

Enter zero on Form 6251, line 31,

1116, line 19. Complete lines 18, 20,

the right amount of tax.

and

and 21 of the AMT Form 1116.

•

Enter on Form 6251, line 37, the

You are not required to provide the

7. Complete Part IV of the first

amount, if any, from line 7 of the

information requested on a form that

AMT Form 1116 only.

Capital Gain Tax Worksheet in the

is subject to the Paperwork Reduction

Follow the instructions below to

instructions for line 40 of Form 1040.

Act unless the form displays a valid

figure the amount to enter on Form

If you did complete Schedule D,

OMB control number. Books or

6251, line 25.

you generally may enter the amounts

records relating to a form or its

If you have no entry on Form 6251,

from Schedule D or the Schedule D

instructions must be retained as long

line 20, and no intangible drilling

Tax Worksheet as instructed on Form

as their contents may become

costs (IDCs) (or the exception for

6251, lines 30, 31, and 33. But do

material in the administration of any

IDCs does not apply to you—see the

not use those amounts if either of the

Internal Revenue law. Generally, tax

instructions for line 14e on page 5),

following applies.

returns and return information are

enter on Form 6251, line 25, the

confidential, as required by section

1. Any gain or loss on Schedule D

smaller of:

6103.

is different for the AMT (for example,

•

90% of Form 6251, line 24, or

because of a different basis for the

The time needed to complete and

•

The amount from line 33 of the first

AMT due to depreciation

file this form will vary depending on

AMT Form 1116.

adjustments, an incentive stock

individual circumstances. The

If you have an entry on line 20 or

option adjustment, or a different AMT

estimated average time is:

the exception for IDCs applies to you:

capital loss carryover from 2000).

Recordkeeping, 2 hr., 30 min.;

1. Figure the amount of tax that

2. You did not complete Part IV of

Learning about the law or the

would be on line 24 if line 20 were

Schedule D because Form 1040, line

form,1 hr., 10 min.; Preparing the

zero and the exception did not apply,

39, is zero.

form, 1 hr., 55 min.; Copying,

2. Multiply the amount from 1

assembling, and sending the form

If 1 or 2 above applies, complete a

above by 10%,

to the IRS, 27 min.

Schedule D for the AMT as follows. If

3. Subtract the amount from 2

If you have comments concerning

1 applies, refigure the amounts for

above from the tax on line 24, and

the accuracy of these time estimates

Schedule D, Parts I, II, and III for the

4. Enter on Form 6251, line 25,

or suggestions for making this form

AMT; otherwise, use the regular tax

the smaller of the amount from 3

simpler, we would be happy to hear

amounts. Next, complete line 19 of

above or the amount from line 33 of

from you. See the instructions for the

the AMT Schedule D and lines 21

the first AMT Form 1116.

tax return with which this form is filed.

through 23 (or lines 2 through 9 of an

Attach to your tax return, after

AMT Schedule D Tax Worksheet, if

Form 6251, all AMT Forms 1116 you

applicable). Use amounts from the

used to figure your AMTFTC.

-8-

Instructions For Form 6251 - Alternative Minimum Tax-Individuals - 2001 Page 8

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