Instructions For Form 6251 - 2011 (Page 12 of 13) in pdf

Filers in the Form 1116 instructions,

Simplified Limitation Election

If (1) applies, complete an AMT

and

Form 8949. Next, if (1) or (3) applies,

You may elect to use a simplified

•

Line 41 of Form 6251 is not more

complete lines 1 through 20 of an AMT

section 904 limitation to figure your

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

Schedule D. Then , if (1), (2), or (3)

AMTFTC. If you do, use your regular

separately).

applies, complete lines 2 through 6 of

tax income for Form 1116, Part I,

an AMT Qualified Dividends and

Note. Use your capital gains and

instead of refiguring your foreign source

Capital Gain Tax Worksheet or lines 2

losses as refigured for the AMT to

income for the AMT, as described

through 13 of an AMT Schedule D Tax

determine whether your total amounts

earlier. You must make the election for

Worksheet, whichever applies. (See

are less than the $20,000 threshold

the first tax year after 1997 for which

line 20 of your AMT Schedule D, if you

under the adjustment exception.

you claim an AMTFTC. If you do not

completed one, to determine which

make the election for that year, you

If you do not need to complete the

worksheet applies.) Complete line 5 of

may not make it for a later year. Once

Worksheet for Line 18, enter the

the AMT Qualified Dividends and

made, the election applies to all later

amount from line 28 of Form 6251 on

Capital Gain Tax Worksheet or lines 3

tax years and may be revoked only with

line 18 of the AMT Form 1116.

and 4 of the AMT Schedule D Tax

IRS consent.

Worksheet, whichever applies, using

Instructions for AMT Worksheet

Line 34

your AMT Form 4952. Use amounts

for Line 18. Follow these steps to

from Schedule D or the AMT Schedule

complete, for the AMT, the Worksheet

If you used Schedule J, Income

D, whichever applies, and either the

for Line 18 in the Form 1116

Averaging for Farmers and Fishermen,

AMT Qualified Dividends and Capital

instructions.

to figure your tax on Form 1040, line 44

Gain Tax Worksheet or the AMT

1. Enter the amount from Form

(or Form 1040NR, line 42), you must

Schedule D Tax Worksheet, whichever

6251, line 28, on line 1 of the

refigure that tax (including any tax from

applies, to complete lines 37, 38, and

worksheet.

Form 8814) without using Schedule J

39 of Form 6251. Keep the AMT Form

before completing this line. This is only

2. Skip lines 2 and 3 of the

8949, AMT Schedule D, and the

for Form 6251; do not change the

worksheet.

applicable worksheet for your records,

3. Enter the amount from Form

amount on Form 1040, line 44 (or Form

but do not attach any of them to your

6251, line 50, on line 4 of the

1040NR, line 42).

tax return.

worksheet.

Form 1040NR. If you are filing Form

4. Multiply line 4 of the worksheet

1040NR, enter the tax from Form

Note. Do not decrease your section

by 0.1071 (instead of 0.2857). Enter the

1040NR, line 42 (minus any tax from

1202 exclusion by the amount, if any,

result on line 5 of the worksheet.

Form 4972, Tax on Lump-Sum

on line 13.

5. Enter the amount from Form

Distributions, and any foreign tax credit

6251, line 48, on line 6 of the

from Form 1040NR, line 45). If you

Forms 2555 and 2555-EZ. If you are

worksheet.

used Schedule J to figure your tax, the

filing either of these forms and you

6. Multiply line 6 of the worksheet

amount on line 42 of Form 1040NR

have a capital gain excess, you must

by 0.4643 (instead of 0.5714). Enter the

must be refigured without using

complete Part III of Form 6251 with

result on line 7 of the worksheet.

Schedule J (see preceding paragraph).

certain modifications. To see if you

7. Enter the amount from Form

have a capital gain excess, subtract

6251, line 47, on line 8 of the

Part III—Tax

Form 6251, line 30, from line 6 of your

worksheet.

AMT Qualified Dividends and Capital

Computation Using

8. Complete lines 9 and 10 of the

Gain Tax Worksheet (or line 10 of your

worksheet as instructed on the

Maximum Capital Gains

AMT Schedule D Tax Worksheet). If the

worksheet.

result is greater than zero, that amount

Rates

is your capital gain excess.

Step 7. Enter the amount from Form

6251, line 31, on the AMT Form 1116,

Lines 37, 38, and 39

If you have capital gain excess,

line 20. Complete lines 19, 21, and 22

figure the amounts to enter on lines 37,

You generally can fill out lines 37, 38,

of the AMT Form 1116.

38, and 39 of Form 6251 using the

and 39 using the amounts from the

Step 8. Complete Part IV of the first

following modifications (only for

Qualified Dividends and Capital Gain

AMT Form 1116 only.

purposes of Part III of Form 6251).

Tax Worksheet or the Schedule D Tax

1. Reduce the amount you would

Enter on Form 6251, line 32, the

Worksheet, whichever applies, and

otherwise enter on line 3 of your AMT

amount from line 30 of the first AMT

Schedule D (Form 1040), if you

Qualified Dividends and Capital Gain

Form 1116.

completed Schedule D. But do not use

Tax Worksheet or line 9 of your AMT

those amounts if any of the following

Attach to your tax return, after Form

Schedule D Tax Worksheet (but not

statements apply.

6251, all AMT Forms 1116 you used to

below zero) by your capital gain

figure your AMTFTC. But do not attach

1. Any gain or loss on Form 8949 or

excess.

AMT Forms 1116 if your AMTFTC is

Schedule D is different for the AMT (for

2. Reduce the amount you would

the same as your regular tax foreign tax

example, because of a different basis

otherwise enter on line 2 of your AMT

credit.

for the AMT due to depreciation

Qualified Dividends and Capital Gain

adjustments, an incentive stock option

AMTFTC Carryback and

Tax Worksheet or line 6 of your AMT

adjustment, or a different AMT capital

Carryforward

Schedule D Tax Worksheet (but not

loss carryover from 2010).

below zero) by any of your capital gain

If your AMTFTC is limited, the unused

2. You did not complete either the

excess not used in (1).

amount generally may be carried back

Qualified Dividends and Capital Gain

3. Reduce the amount on your AMT

or forward according to section 904(c).

Tax Worksheet or the Schedule D Tax

Schedule D (Form 1040), line 18, (but

However, if you made the election to

Worksheet because Form 1040, line 43

not below zero) by your capital gain

claim the foreign tax credit on Form

(or Form 1040NR, line 41), is zero.

excess.

1040 (or Form 1040NR) without filing

3. You received a Schedule K-1

Form 1116, any unused AMTFTC

(Form 1041) that shows an amount in

4. Include your capital gain excess

cannot be carried back or forward. In

box 12 with code B, C, D, E, or F. If this

as a loss on line 16 of your AMT

addition, no unused AMTFTC from

applies, see Beneficiaries of estates or

Unrecaptured Section 1250 Gain

another year can be used in any year

trusts. Then read the following

Worksheet in the Instructions for

for which the election has been made.

instructions.

Schedule D (Form 1040).

-11-

Instructions for Form 6251 (2011)

Instructions For Form 6251 - 2011 Page 12

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