Instructions For Form 6251 - Alternative Minimum Tax - Individuals - 2007
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Department of the Treasury
Internal Revenue Service
Instructions for Form 6251
Alternative Minimum Tax—Individuals
Section references are to the Internal
Recordkeeping
Optional Write-Off for
Revenue Code unless otherwise noted.
For the AMT, certain items of income,
Certain Expenditures
General Instructions
deductions, etc., receive different tax
There is no AMT adjustment for the
treatment than for the regular tax.
following items if you elect for the regular
Therefore, you need to refigure items for
What’s New
tax to deduct them ratably over the period
the AMT that you figured for the regular
of time shown.
•
tax. In some cases, you may wish to do
For 2007, the exemption amount has
•
Circulation expenditures — 3 years
this by completing the applicable tax form
increased to $44,350 ($66,250 if married
(section 173).
a second time. If you do complete another
filing jointly or qualifying widow(er);
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Research and experimental
form, do not attach it to your tax return,
$33,125 if married filing separately).
expenditures — 10 years (section 174(a)).
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but keep it for your records. However, you
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For 2007, the minimum exemption
Mining exploration and development
may have to attach an AMT Form 1116,
amount for a child under age 18 has
costs — 10 years (sections 616(a) and
Foreign Tax Credit, to your return; see the
increased to $6,300.
617(a)).
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instructions for line 32 beginning on
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Beginning in 2007, you can no longer
Intangible drilling costs — 60 months
page 8.
deduct the additional exemption amount
(section 263(c)).
For the regular tax, some deductions
that was allowable if you provided
For information on making the election,
housing for a person displaced by
and credits may result in carrybacks or
see section 59(e) and Regulations section
Hurricane Katrina.
carryforwards to other tax years.
1.59-1. Also see Pub. 535.
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Examples are investment interest
In most cases, no adjustment is
expense, a net operating loss, a capital
required for the deduction of qualified
loss, a passive activity loss, and the
mortgage insurance premiums. But see
Specific Instructions
foreign tax credit. Because you may have
the worksheet for line 4 on page 2.
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to refigure these items for the AMT, the
The Foreign Earned Income Tax
carryback or carryforward amount may be
Worksheet on page 8 has been revised to
If you owe AMT, you may be able
different for the AMT than for the regular
TIP
to lower your total tax (regular tax
reflect changes made by the Tax
tax. Your at-risk limits and basis amounts
Technical Corrections Act of 2007.
plus AMT) by claiming itemized
also may differ for the AMT. Therefore,
deductions on Form 1040, even if your
you must keep records of these different
Purpose of Form
total itemized deductions are less than
amounts.
the standard deduction. This is because
Use Form 6251 to figure the amount, if
the standard deduction is not allowed for
any, of your alternative minimum tax
Partners and Shareholders
the AMT and, if you claim the standard
(AMT). The AMT applies to taxpayers
deduction on Form 1040, you cannot
If you are a partner in a partnership or a
who have certain types of income that
claim itemized deductions for the AMT.
shareholder in an S corporation, see
receive favorable treatment, or who
Schedule K-1 and its instructions to figure
qualify for certain deductions, under the
Part I—Alternative
your adjustments or preferences from the
tax law. These tax benefits can
partnership or S corporation to include on
Minimum Taxable Income
significantly reduce the regular tax of
Form 6251.
some taxpayers with higher economic
(AMTI)
incomes. The AMT sets a limit on the
Nonresident Aliens
amount these benefits can be used to
To avoid duplication, any
reduce total tax.
If you are a nonresident alien and you
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adjustment or preference for line
disposed of U.S. real property interests at
Also use Form 6251 to figure the tax
5, 18, or 19 or for a tax shelter
a gain, you must make a special
CAUTION
liability limit on the credits listed under
farm activity on line 26 must not be taken
computation. Fill in Form 6251 through
Who Must File below.
into account in figuring the amount to
line 30. If your net gain from the
enter for any other adjustment or
disposition of U.S. real property interests
preference.
Who Must File
and the amount on line 28 are both
greater than the tentative amount you
Line 1
Attach Form 6251 to your return if any of
figured for line 30, replace the amount on
the following statements is true.
If Form 1040, line 43, includes a write-in
line 30 with the smaller of that net gain or
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Form 6251, line 31, is greater than
amount (such as a capital construction
the amount on line 28. Also, enter “RPI”
line 34.
fund deduction for commercial
on the dotted line next to line 30.
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fishermen), adjust line 1 by the write-in
You claim any general business credit
Otherwise, do not change line 30.
amount.
on Form 3800, the empowerment zone
and renewal community employment
Credit for Prior Year
Form 1040NR. If you are filing Form
credit, the qualified electric vehicle credit,
1040NR, enter the amount from Form
Minimum Tax
the alternative motor vehicle credit, the
1040NR, line 38. If less than zero, enter
alternative fuel vehicle refueling property
See Form 8801, Credit for Prior Year
as a negative amount.
credit, or the credit for prior year minimum
Minimum Tax — Individuals, Estates, and
Line 3—Taxes
tax.
Trusts, if you paid AMT for 2006 or you
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The total of Form 6251, lines 8 through
had a minimum tax credit carryforward on
Enter the amount of all taxes from
27, is negative and line 31 would be
your 2006 Form 8801. If you pay AMT for
Schedule A (Form 1040), line 9, except
greater than line 34 if you did not take into
2007, you may be able to take a credit on
generation-skipping transfer taxes on
account lines 8 through 27.
Form 8801 for 2008.
income distributions. Be sure to include
Cat. No. 64277P
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