Instructions For Form 6251 - Alternative Minimum Tax-Individuals

Step 3. Follow the instructions below,

foreign source capital gain distributions

Instructions for Worksheets A and

if applicable, to determine the amount

are taxed at a rate of 15%. Include the

B. When you complete Worksheet A

of foreign source qualified dividends,

results on line 1a of the applicable AMT

or Worksheet B, use foreign source

capital gain distributions, and other

Form 1116.

capital gains and losses, as refigured

capital gains and losses to include on

for the AMT if necessary, and do not

You adjust your foreign source

line 1a and line 5 of the AMT Form

use any foreign source capital gains

capital gain distributions taxed at the

1116.

you elected to include on line 4g of

0% rate by not including them on line

AMT Form 4952. If you are required to

Foreign qualified dividends. You

1a. Amounts taxed at the 0% rate are

complete a Schedule D for the AMT,

must adjust your foreign source

on line 11 of the Qualified Dividends

use line 16 of that AMT Schedule D to

qualified dividends before you include

and Capital Gain Tax Worksheet in the

complete line 3 of Worksheet A or line

those amounts on line 1a of the AMT

Form 1040 instructions, line 9 of the

4 of the Line 2 Worksheet for

Form 1116 if:

Qualified Dividends and Capital Gain

•

Worksheet B. Use 0.5357 instead of

Line 52 of Form 6251 is smaller than

Tax Worksheet in the Form 1040NR

0.4286 to complete lines 11, 13, and 15

line 53, and

instructions, or line 20 of the Schedule

•

of Worksheet B and to complete lines

Line 41 of Form 6251 is greater than

D Tax Worksheet.

8, 11, and 17 of the Line 15 Worksheet

zero.

for Worksheet B.

Do not adjust the amount of any

But you do not need to make any

If you do not qualify to use

foreign source capital gain

adjustments if:

•

Worksheet A or Worksheet B, use the

distributions you elected to

You qualify for the adjustment

CAUTION

instructions for Capital Gains and

include on line 4g of AMT Form 4952.

exception under Qualified Dividends

Losses in Pub. 514 to determine the

and Capital Gain Tax Worksheet

Individuals with other capital

adjustments you make.

(Individuals) or Adjustments to foreign

gains or losses. If any capital gain or

qualified dividends under Schedule D

Step 4. Complete Part II and lines 9

loss is different for the AMT, use

Filers in the Form 1116 instructions,

through 14 of the AMT Form 1116. Use

amounts as refigured for the AMT to

and

your AMTFTC carryover, if any, on

complete this step. Use Worksheet A in

•

Line 41 of Form 6251 is not more

line 10.

the instructions for Form 1116 to

than $175,000 ($87,500 if married filing

Step 5. If the simplified limitation

determine the adjustments you must

separately).

election does not apply, complete lines

make to your foreign source capital

Note. Use your capital gains and

15 through 17 of the AMT Form 1116.

gains or losses (as refigured for the

losses as refigured for the AMT to

AMT) if you have foreign source capital

Step 6. If you did not complete Part III

determine whether your total amounts

gains or losses (as refigured for the

of Form 6251, enter the amount from

are less than the $20,000 threshold

AMT) in no more than two separate

line 28 of Form 6251 on line 18 of the

under the adjustment exception.

categories and any of the following

AMT Form 1116 and go to Step 7. If

apply.

you completed Part III of Form 6251,

To adjust your foreign source

•

You are not required to make

you must complete, for the AMT, the

qualified dividends, multiply your

adjustments to your foreign source

Worksheet for Line 18 in the Form 1116

foreign source qualified dividends in

qualified dividends under the rules

instructions to determine the amount to

each separate category by 0.5357 if the

described earlier (or you would not be

enter on line 18 of the AMT Form 1116

foreign source qualified dividends are

required to make those adjustments if

if:

taxed at a rate of 15%. Include the

•

you had foreign source qualified

Line 52 of Form 6251 is smaller than

results on line 1a of the applicable AMT

dividends).

line 53, and

Form 1116.

•

Line 15 or 16 of the AMT Schedule D

Line 41 of Form 6251 is greater than

You adjust your foreign source

(Form 1040) is zero or a loss.

zero.

qualified dividends taxed at the 0% rate

•

On the AMT Qualified Dividends and

But you do not need to complete the

by not including them on line 1a.

Capital Gain Tax Worksheet in the

Worksheet for Line 18 if:

Amounts taxed at the 0% rate are on

Form 1040 instructions, (a) line 3 of

•

You qualify for the adjustment

line 11 of the Qualified Dividends and

that worksheet minus the amount on

exception under Qualified Dividends

Capital Gain Tax Worksheet in the

Form 4952, line 4e, that you elected to

and Capital Gain Tax Worksheet

Form 1040 instructions, line 9 of the

include on Form 4952, line 4g, is zero

(Individuals) or Adjustments to foreign

Qualified Dividends and Capital Gain

or less, (b) line 7 of that worksheet is

qualified dividends under Schedule D

Tax Worksheet in the Form 1040NR

zero, or (c) line 17 of that worksheet is

Filers in the Form 1116 instructions,

instructions, or line 20 of the Schedule

equal to or greater than line 18.

and

D Tax Worksheet.

•

On the AMT Qualified Dividends and

•

Line 41 of Form 6251 is not more

Capital Gain Tax Worksheet in the

Do not adjust the amount of any

than $175,000 ($87,500 if married filing

Form 1040NR instructions, (a) line 3 of

foreign source qualified

separately).

that worksheet is zero, (b) line 5 of that

dividends you elected to include

CAUTION

Note. Use your capital gains and

worksheet is zero, or (c) line 15 of that

on line 4g of AMT Form 4952.

losses as refigured for the AMT to

worksheet is equal to or greater than

Individuals with capital gain

determine whether your total amounts

line 16.

distributions only. If you have no

are less than the $20,000 threshold

•

On the AMT Schedule D Tax

capital gains or losses other than

under the adjustment exception.

Worksheet (Form 1040), (a) line 18 is

capital gain distributions from box 2a of

zero, (b) line 9 is zero or less, or (c) line

If you do not need to complete the

Form(s) 1099-DIV or substitute

35 is equal to or greater than line 36.

Worksheet for Line 18, enter the

statement(s), you must adjust your

amount from line 28 of Form 6251 on

foreign source capital gain distributions

Use Worksheet B if you:

line 18 of the AMT Form 1116.

if you are required to adjust your

•

Cannot use Worksheet A,

Instructions for AMT Worksheet

foreign source qualified dividends under

•

Have foreign source capital gains

the rules just described or you would be

for Line 18. Follow these steps to

and losses in no more than two

required to adjust your foreign source

complete, for the AMT, the Worksheet

separate categories,

qualified dividends if you had any.

•

for Line 18 in the Form 1116

Did not have any item of

instructions.

To adjust your foreign source capital

unrecaptured section 1250 gain or 28%

gain distributions, multiply your foreign

rate gain or loss for the AMT, and

1. Enter the amount from Form

•

source capital gain distributions in each

Do not have any capital gains taxed

6251, line 28, on line 1 of the

separate category by 0.5357 if the

at a rate of 0%.

worksheet.

-10-

Instructions for Form 6251 (2011)

Instructions For Form 6251 - Alternative Minimum Tax-Individuals - 2011 Page 10

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