Instructions For Form 6251 - Alternative Minimum Tax - Individuals

Also include any refunds received in 2007

and included in income on Form 1040,

Home Mortgage Interest Adjustment Worksheet —

Keep for Your

line 21, that are attributable to state or

Line 4

Records

local personal property taxes or general

sales taxes, foreign income taxes, or

state, local, or foreign real property taxes.

1. Enter the total of the home mortgage interest you deducted on lines 10

Enter the total as a negative amount. If

through 12 of Schedule A (Form 1040) and any qualified mortgage

you include an amount from Form 1040,

insurance premiums you deducted on line 13 of Schedule A (Form 1040)

line 21, you must enter a description and

2. Enter the part, if any, of the interest included on line 1

the amount next to the entry space for

above that was paid on an eligible mortgage (defined

line 7. For example, if you include a

on this page). Include any qualified mortgage insurance

refund of real property taxes, enter “real

premiums included on line 1 above that were paid in

property” and the amount next to the

connection with an eligible mortgage . . . . . . . . . . . . 2.

entry space.

3. Enter the part, if any, of the interest included on line 1

Line 8—Investment Interest

above that was paid on a mortgage whose proceeds

were used in a refinancing (including a second or later

If you filled out Form 4952, Investment

refinancing) of an eligible mortgage. Include any

Interest Expense Deduction, for your

qualified mortgage insurance premiums included on

regular tax, you will need to fill out a

line 1 above that were paid in connection with such a

second Form 4952 for the AMT as

mortgage. Do not include any interest paid on (or any

follows.

qualified mortgage insurance premiums paid in

Step 1. Follow the Form 4952

connection with) the part of the balance of the new

instructions for line 1, but also include the

mortgage that exceeded the balance of the original

following amounts when completing

eligible mortgage immediately before it was refinanced

line 1.

(or, if smaller, the balance of any prior refinanced

•

Any interest expense on Form 6251,

mortgage immediately before that mortgage was

line 4, that was paid or accrued on

refinanced) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.

indebtedness attributable to property held

4. Enter the part, if any, of the interest included on line 1

for investment within the meaning of

above that was paid on a mortgage:

section 163(d)(5) (for example, interest on

• Taken out before July 1, 1982, and

a home equity loan whose proceeds were

• Secured, at the time the mortgage was taken out, by

invested in stocks or bonds).

your main home or a qualified dwelling used by you or

•

Any interest that would have been

your family (see definitions on this page).

deductible if interest earned on private

Do not include any amount entered on line 2 or line 3

activity bonds issued after August 7,

above . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.

1986, had been includible in gross

5. Add lines 2 through 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.

income.

6. Subtract line 5 from line 1 and enter the result on Form 6251, line 4 . . . . 6.

Step 2. Enter your AMT disallowed

investment interest expense from 2006 on

line 2. Complete line 3.

any state and local general sales taxes

The balance of the new mortgage is the

included on Schedule A, line 9.

same as the balance of the old mortgage.

Step 3. When completing Part II,

In July 2007, they obtained a home equity

Form 1040NR. If you are filing Form

refigure the following amounts, taking into

loan on their home and used the

1040NR, enter the amount of all taxes

account all adjustments and preferences.

•

proceeds to buy a new car. They paid

from Schedule A (Form 1040NR), line 3,

Gross income from property held for

$5,000 in interest on the home equity loan

except generation-skipping transfer taxes

investment.

•

in 2007. They enter the following amounts

on income distributions.

Net gain from the disposition of

on the Home Mortgage Interest

property held for investment.

Line 4—Home Mortgage

•

Adjustment Worksheet: $24,000 on line 1

Net capital gain from the disposition of

Interest Adjustment

($10,000 plus $9,000 plus $5,000),

property held for investment.

•

$10,000 on line 2, $9,000 on line 3, $ -0-

Complete the worksheet on this page to

Investment expenses.

on line 4, $19,000 on line 5 ($10,000 plus

figure your home mortgage interest

Include any interest income and

$9,000), and $5,000 on line 6 ($24,000

adjustment. The definitions of certain

investment expenses from private activity

minus $19,000).

terms used in the worksheet are as

bonds issued after August 7, 1986.

follows.

Line 5—Miscellaneous

On line 4g, enter the smaller of:

Eligible mortgage. An eligible mortgage

Deductions

1. The amount from line 4g of your

is a mortgage whose proceeds were used

regular tax Form 4952, or

If you are filing Form 1040NR, enter the

to buy, build, or substantially improve

2. The total of lines 4b and 4e of this

amount from Schedule A (Form 1040NR),

your main home or a second home that is

AMT Form 4952.

line 15.

a qualified dwelling. A mortgage whose

proceeds were used to refinance another

Line 6

Step 4. Complete Part III.

mortgage is not an eligible mortgage.

Enter the amount from line 11 of the

Enter on Form 6251, line 8, the

Qualified dwelling. A qualified dwelling

Itemized Deductions Worksheet as a

difference between line 8 of your AMT

is any house, apartment, condominium, or

negative amount.

Form 4952 and line 8 of your regular tax

mobile home not used on a transient

Form 4952. If your AMT expense is

Form 1040NR. If you are filing Form

basis.

greater, enter the difference as a negative

1040NR and line 36 is over $156,400

Family. Family includes only your

amount.

(over $78,200 if you checked filing status

brothers and sisters (whether by whole or

Investment interest expense that is not

box 3, 4, or 5), enter the amount from line

half blood), your spouse, your ancestors,

an itemized deduction. If you did not

11 of the Itemized Deductions Worksheet

and your lineal descendants.

itemize deductions and you had

in the instructions for Form 1040NR as a

Example. In 2007, Dave and Jennifer

investment interest expense, do not enter

negative amount on line 6.

paid $10,000 in interest on a mortgage

an amount on Form 6251, line 8, unless

Line 7—Refund of Taxes

they took out to buy their home (an

you reported investment interest expense

eligible mortgage). In May 2007, they

Include any refund from Form 1040, line

on Schedule E. If you did, follow the steps

refinanced that mortgage and paid $9,000

10 (or Form 1040NR, line 11), that is

above for completing Form 4952. Allocate

in interest through the rest of the year.

attributable to state or local income taxes.

the investment interest expense allowed

-2-

Instructions For Form 6251 - Alternative Minimum Tax - Individuals - 2007 Page 2

Related Articles

Related forms

Related Categories