Instructions For Form 6251 - Alternative Minimum Tax-Individuals

through 26, or you have any amount

Do not include on line 27 any

Line 28—Alternative

included on line 27 from pre-1987

adjustment for an item you

Minimum Taxable Income

depreciation, patron’s adjustment,

refigured on another line of this

CAUTION

If your filing status is married filing

pollution control facilities, or tax shelter

form (for example, line 9).

separately and line 28 is more than

farm activities, you may have to refigure

$223,900, you must include an

any item of income or deduction based

Example. On your Schedule C

additional amount on line 28. If line 28

on a limit of income other than AGI or

(Form 1040) you have a net profit of

is $372,800 or more, include an

modified AGI.

$9,000 before figuring your section 179

additional $37,225. Otherwise, include

deduction. You do not report any other

Affected items include the following.

25% of the excess of the amount on

business income on your return. During

•

Section 179 expense deduction

line 28 over $223,900. For example, if

the year, you purchased an asset for

(Form 4562, Depreciation and

the amount on line 28 is $243,900,

$10,000 for which you elect to take the

Amortization, line 12).

enter $248,900 instead — the additional

section 179 deduction. You also have

•

$5,000 is 25% of $20,000 ($243,900

Expenses for business or rental use

an AMT depreciation adjustment of

minus $223,900).

of your home.

$700 for other assets depreciated on

•

Conservation expenses (Schedule F,

your Schedule C.

Special Rule for Holders of a

line 12).

Residual Interest in a REMIC

•

Taxable IRA distributions (Form

Your section 179 deduction for the

If you held a residual interest in a real

1040, line 15b, or Form 1040NR, line

regular tax is limited to your net profit

estate mortgage investment conduit

16b), if prior year IRA deductions were

(before any section 179 deduction) of

(REMIC) in 2011, the amount you enter

different for the AMT and the regular

$9,000. The $1,000 excess is a section

on line 28 may not be less than the

tax.

179 deduction carryforward for the

amount on Schedule E, line 38, column

•

Self-employed health insurance

regular tax.

(c). If the amount in column (c) is larger

deduction (Form 1040, line 29, or Form

than the amount you would otherwise

1040NR, line 29).

For the AMT, your net profit is

enter on line 28, enter the amount from

•

Self-employed SEP, SIMPLE, and

$9,700, and you are allowed a section

column (c) instead and enter “Sch. Q”

qualified plans deduction (Form 1040,

179 deduction of $9,700 for the AMT.

on the dotted line next to line 28.

line 28, or Form 1040NR, line 28).

You have a section 179 deduction

If your filing status is married filing

•

IRA deduction (Form 1040, line 32,

carryforward of $300 for the AMT.

separately, be sure to include the

or Form 1040NR, line 32), affected by

additional amount that must be added

the earned income limitation of section

You include a $700 negative

to line 28 (as explained above) before

219(b)(1)(B).

adjustment on line 27 because your

you compare line 28 with the amount

section 179 deduction for the AMT is

on Schedule E, line 38, column (c).

Figure the difference between the

$700 greater than your allowable

AMT and regular tax amount for each

Part II—Alternative

regular tax deduction. In the following

item. Combine the amounts for all your

year, when you use the $1,000 regular

related adjustments and include the

Minimum Tax

tax carryforward, you will have a $700

total on line 27. Keep a copy of all

positive related adjustment for the AMT

computations for your records,

Line 29—Exemption Amount

because your AMT carryforward is only

including any AMT carryover and basis

$300.

amounts.

If line 28 is more than the amount

shown for your filing status in the

middle column of the chart on line 29,

see the Exemption Worksheet to figure

Exemption Worksheet—

the amount to enter on line 29.

Line 29

Keep for Your Records

Certain Children Under Age 24

Your exemption amount is limited to the

Note. If Form 6251, line 28, is equal to or more than: $306,300 if single or head of household, $447,800

amount of your earned income plus

if married filing jointly or qualifying widow(er), or $223,900 if married filing separately, your exemption is

$6,800 if condition 1, 2, or 3 below

zero. Do not complete this worksheet; instead, enter the amount from Form 6251, line 28, on line 30 and

go to line 31.

applies to you.

1. You were under age 18 at the

1. Enter: $48,450 if single or head of household; $74,450 if married

end of 2011.

filing jointly or qualifying widow(er); $37,225 if married filing

2. You were age 18 at the end of

separately . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.

2011 and did not have earned income

2. Enter your alternative minimum taxable income

that was more than half of your support.

(AMTI) from Form 6251, line 28 . . . . . . . . . . . 2.

3. You were a full-time student over

3. Enter: $112,500 if single or head of household;

age 18 and under age 24 at the end of

$150,000 if married filing jointly or qualifying

2011 and did not have earned income

widow(er); $75,000 if married filing separately

that was more than half of your support.

4. Subtract line 3 from line 2. If zero or less, enter

-0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.

If condition 1, 2, or 3 applies to you,

5. Multiply line 4 by 25% (.25) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.

complete the Exemption Worksheet,

6. Subtract line 5 from line 1. If zero or less, enter -0-. If any of the

including lines 7 through 10, to figure

three conditions under Certain Children Under Age 24 apply to

the amount to enter on Form 6251, line

you, complete lines 7 through 10. Otherwise, stop here and

29.

enter this amount on Form 6251, line 29, and go to Form 6251,

Exception. If you filed a joint return for

line 30 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2011 or neither of your parents was

7. Minimum exemption amount for certain children under age 24 . . . . 7.

$6,800

alive at the end of 2011, do not

8. Enter your earned income, if any (see instructions) . . . . . . . . . . . 8.

complete lines 7 through 10 of the

9. Add lines 7 and 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.

Exemption Worksheet. However, you

10. Enter the smaller of line 6 or line 9 here and on Form 6251, line

still must complete lines 1 through 6 of

10.

29, and go to Form 6251, line 30 . . . . . . . . . . . . . . . . . . . . . .

the worksheet if Form 6251, line 28, is

more than the amount shown for your

-8-

Instructions for Form 6251 (2011)

Instructions For Form 6251 - Alternative Minimum Tax-Individuals - 2011 Page 8

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