Instructions For Form 6251 - 2011 (Page 2 of 13) in pdf

2011

Department of the Treasury

Internal Revenue Service

Instructions for Form 6251

Alternative Minimum Tax—Individuals

Optional Write-Off for

Section references are to the Internal

you do complete another form, do not

Revenue Code unless otherwise noted.

attach it to your tax return, but keep it

Certain Expenditures

for your records. However, you may

General Instructions

have to attach an AMT Form 1116,

There is no AMT adjustment for the

For information about any additional

following items if you elect for the

Foreign Tax Credit, to your return; see

changes to the 2011 tax law or other

regular tax to deduct them ratably over

the instructions for line 32.

developments affecting Form 6251 or

the period of time shown.

•

its instructions, go to

For the regular tax, some deductions

Circulation expenditures — 3 years

and credits may result in carrybacks or

(section 173).

•

carryforwards to other tax years.

Research and experimental

What’s New

Examples are investment interest

expenditures — 10 years (section

expense, a net operating loss, a capital

The exemption amount has increased

174(a)).

•

loss, a passive activity loss, and the

to $48,450 ($74,450 if married filing

Mining exploration and development

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

foreign tax credit. Because you may

costs — 10 years (sections 616(a) and

if married filing separately).

have to refigure these items for the

617(a)).

•

AMT, the carryback or carryforward

Intangible drilling costs — 60 months

Who Must File

amount may be different for the AMT

(section 263(c)).

than for the regular tax. Your at-risk

Attach Form 6251 to your return if any

For information on making the

limits and basis amounts also may

of the following statements is true.

election, see section 59(e) and

differ for the AMT. Therefore, you must

1. Form 6251, line 31, is greater

Regulations section 1.59-1. Also see

keep records of these different

than line 34.

Pub. 535, Business Expenses.

amounts.

2. You claim any general business

credit, and either line 6 (in Part I) or line

Partners and

25 of any Form 3800 is more than zero.

Specific Instructions

3. You claim the qualified electric

Shareholders

vehicle credit, the personal use part of

the alternative fuel vehicle refueling

If you are a partner in a partnership or a

If you owe AMT, you may be

property credit, or the credit for prior

TIP

able to lower your total tax

shareholder in an S corporation, see

year minimum tax.

(regular tax plus AMT) by

Schedule K-1 and its instructions to

4. The total of Form 6251, lines 8

claiming itemized deductions on Form

figure your adjustments or preferences

through 27, is negative and line 31

1040, even if your total itemized

from the partnership or S corporation to

would be greater than line 34 if you did

deductions are less than the standard

include on Form 6251.

not take into account lines 8 through

deduction. This is because the standard

27.

deduction is not allowed for the AMT

Nonresident Aliens

and, if you claim the standard

deduction on Form 1040, you cannot

Purpose of Form

If you are a nonresident alien and you

claim itemized deductions for the AMT.

disposed of U.S. real property interests

Use Form 6251 to figure the amount, if

at a gain, you must make a special

any, of your alternative minimum tax

Part I—Alternative

computation. Fill in Form 6251 through

(AMT). The AMT applies to taxpayers

line 30. If your net gain from the

who have certain types of income that

Minimum Taxable

disposition of U.S. real property

receive favorable treatment, or who

Income (AMTI)

interests and the amount on line 28 are

qualify for certain deductions, under the

both greater than the tentative amount

tax law. These tax benefits can

you figured for line 30, replace the

significantly reduce the regular tax of

To avoid duplication, any

amount on line 30 with the smaller of

adjustment or preference for line

some taxpayers with higher economic

that net gain or the amount on line 28.

5, 19, or 20 or for a tax shelter

incomes. The AMT sets a limit on the

CAUTION

Also, enter “RPI” on the dotted line next

amount these benefits can be used to

farm activity on line 27 must not be

to line 30. Otherwise, do not change

reduce total tax.

taken into account in figuring the

line 30.

amount to enter for any other

Also use Form 6251 to help you

adjustment or preference.

figure the tax liability limit on the credits

Credit for Prior Year

listed under Who Must File.

Line 1

Minimum Tax

Recordkeeping

If Form 1040, line 43, includes a

write-in amount (such as a capital

See Form 8801, Credit for Prior Year

For the AMT, certain items of income,

construction fund deduction for

Minimum Tax — Individuals, Estates,

deductions, etc., receive different tax

commercial fishermen), adjust line 1 by

and Trusts, if you paid AMT for 2010 or

treatment than for the regular tax.

the write-in amount.

you had a minimum tax credit

Therefore, you need to refigure items

carryforward on your 2010 Form 8801.

for the AMT that you figured for the

Form 1040NR. If you are filing Form

If you pay AMT for 2011, you may be

regular tax. In some cases, you may

1040NR, enter the amount from Form

able to take a credit on Form 8801 for

wish to do this by completing the

1040NR, line 39. If less than zero, enter

applicable tax form a second time. If

2012.

as a negative amount.

Oct 18, 2011

Cat. No. 64277P

Instructions For Form 6251 - 2011 Page 2

Related Articles

Related forms

Related Categories