Instructions For Form 6251 - Alternative Minimum Tax - Individuals

dividends under the rules just described

Step 5. If the simplified limitation election

same as your regular tax foreign tax

or you would be required to adjust your

does not apply, complete lines 14 through

credit.

foreign source qualified dividends if you

16 of the AMT Form 1116.

AMTFTC Carryback and

had any.

Step 6. If you did not complete Part III of

Carryforward

Form 6251, enter the amount from line 28

To adjust your foreign source capital

If your AMTFTC is limited, the unused

of Form 6251 on line 17 of the AMT Form

gain distributions, multiply your foreign

amount generally may be carried back or

1116 and go to Step 7. If you completed

source capital gain distributions in each

forward according to section 904(c).

Part III of Form 6251, you must complete,

separate category by 0.5357. Include the

However, if you made the election to

for the AMT, the Worksheet for Line 17 in

results on line 1a of the applicable AMT

claim the foreign tax credit on Form 1040

the Form 1116 instructions to determine

Form 1116. But do not adjust the amount

(or Form 1040NR) without filing Form

the amount to enter on line 17 of the AMT

of any foreign source capital gain

1116, any unused AMTFTC cannot be

Form 1116 if:

distribution you elected to include on line

•

carried back or forward. In addition, no

Line 53 of Form 6251 is smaller than

4g of AMT Form 4952.

unused AMTFTC from another year can

line 54, and

•

be used in any year for which the election

Line 41 of Form 6251 is greater than

Individuals with other capital gains

has been made.

zero.

or losses. If any capital gain or loss is

different for the AMT, use amounts as

But you do not need to complete the

Simplified Limitation Election

refigured for the AMT to complete this

Worksheet for Line 17 if:

You may elect to use a simplified section

•

step. Use Worksheet A in the instructions

You qualify for the adjustment

904 limitation to figure your AMTFTC. If

for Form 1116 to determine the

exception under Qualified Dividends and

you do, use your regular tax income for

adjustments you must make to your

Capital Gain Tax Worksheet (Individuals)

Form 1116, Part I, instead of refiguring

foreign source capital gains or losses (as

or Adjustments to foreign qualified

your foreign source income for the AMT,

refigured for the AMT) if you have foreign

dividends under Schedule D Filers in the

as described earlier. You must make the

source capital gains or losses (as

Form 1116 instructions, and

election for the first tax year after 1997 for

•

refigured for the AMT) in no more than

Line 41 of Form 6251 is not more than

which you claim an AMTFTC. If you do

two separate categories and any of the

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

not make the election for that year, you

following apply.

separately).

•

may not make it for a later year. Once

You are not required to make

Note. Use your capital gains and losses

made, the election applies to all later tax

adjustments to your foreign source

as refigured for the AMT to determine

years and may be revoked only with IRS

qualified dividends under the rules

whether your total amounts are less than

consent.

described earlier (or you would not be

the $20,000 threshold under the

required to make those adjustments if you

Line 34

adjustment exception.

had foreign source qualified dividends).

If you used Schedule J to figure your tax

•

If you do not need to complete the

Line 15 or 16 of the AMT Schedule D

on Form 1040, line 44 (or Form 1040NR,

Worksheet for Line 17, enter the amount

(Form 1040) is zero or a loss.

line 41), you must refigure that tax

•

from line 28 of Form 6251 on line 17 of

The amount on line 3 of the AMT

(including any tax from Form 8814)

the AMT Form 1116.

Qualified Dividends and Capital Gain Tax

without using Schedule J before

Instructions for AMT Worksheet for

Worksheet (or line 7 of the AMT Schedule

completing this line. This is only for Form

Line 17. Follow these steps to complete,

D Tax Worksheet) minus the amount on

6251; do not change the amount on Form

for the AMT, the Worksheet for Line 17 in

Form 4952, line 4e, that you elected to

1040, line 44 (or Form 1040NR, line 41).

the Form 1116 instructions.

include on Form 4952, line 4g, is zero or

Form 1040NR. If you are filing Form

less.

1. Enter the amount from Form 6251,

1040NR, enter the tax from Form

line 28, on line 1 of the worksheet.

Use Worksheet B if you:

1040NR, line 41 (minus any tax from

2. Skip lines 2 and 3 of the worksheet.

•

Cannot use Worksheet A,

Form 4972 and any foreign tax credit from

3. Enter the amount from Form 6251,

•

Have foreign source capital gains and

Form 1040NR, line 46). If you used

line 51, on line 4 of the worksheet.

losses in no more than two separate

Schedule J to figure your tax, the amount

4. Multiply line 4 of the worksheet by

categories, and

on line 41 of Form 1040NR must be

0.1071 (instead of 0.2857). Enter the

•

Did not have any item of unrecaptured

refigured without using Schedule J (see

result on line 5 of the worksheet.

section 1250 gain or 28% rate gain or

preceding paragraph).

5. Enter the amount from Form 6251,

loss for the AMT.

line 49, on line 6 of the worksheet.

Part III—Tax Computation

6. Multiply line 6 of the worksheet by

Instructions for Worksheets A and

0.4643 (instead of 0.5714). Enter the

B. When you complete Worksheet A or

Using Maximum Capital

result on line 7 of the worksheet.

Worksheet B, use foreign source capital

Gains Rates

7. Enter the amount from Form 6251,

gains and losses, as refigured for the

line 47, on line 8 of the worksheet.

AMT if necessary, and do not use any

Lines 37, 38, and 39

8. Multiply line 8 of the worksheet by

foreign source capital gains you elected

0.8214 (instead of 0.8571). Enter the

to include on line 4g of AMT Form 4952. If

You generally can fill out lines 37, 38, and

result on line 9 of the worksheet.

you are required to complete a Schedule

39 using the amounts from the Qualified

9. Complete lines 10 and 11 of the

D for the AMT, use line 16 of that AMT

Dividends and Capital Gain Tax

worksheet as instructed on the

Schedule D to complete line 3 of

Worksheet or the Schedule D Tax

worksheet.

Worksheet A or line 4 of the Line 2

Worksheet, whichever applies, and

Worksheet for Worksheet B. Use 0.5357

Schedule D (Form 1040), if you

Step 7. Enter the amount from Form

instead of 0.4286 to complete lines 11,

completed Schedule D. But do not use

6251, line 31, on the AMT Form 1116,

13, and 15 of Worksheet B and to

those amounts if any of the following

line 19. Complete lines 18, 20, and 21 of

complete lines 8, 11, and 17 of the Line

statements apply.

the AMT Form 1116.

15 Worksheet for Worksheet B.

1. Any gain or loss on Schedule D is

Step 8. Complete Part IV of the first

different for the AMT (for example,

If you do not qualify to use Worksheet

AMT Form 1116 only.

because of a different basis for the AMT

A or Worksheet B, use the instructions for

Enter on Form 6251, line 32, the

due to depreciation adjustments, an

Capital Gains and Losses in Pub. 514 to

amount from line 29 of the first AMT

incentive stock option adjustment, or a

determine the adjustments you make.

Form 1116.

different AMT capital loss carryover from

Step 4. Complete Part II and lines 9

Attach to your tax return, after Form

2006).

through 13 of the AMT Form 1116. Use

6251, all AMT Forms 1116 you used to

2. You did not complete either the

your AMTFTC carryover, if any, on

figure your AMTFTC. But do not attach

Qualified Dividends and Capital Gain Tax

line 10.

AMT Forms 1116 if your AMTFTC is the

Worksheet or the Schedule D Tax

-9-

Instructions For Form 6251 - Alternative Minimum Tax - Individuals - 2007 Page 9

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