Instructions For Form 6251 - 2011 (Page 3 of 13) in pdf

Line 5—Miscellaneous

Deductions

Home Mortgage Interest Adjustment

If you are filing Form 1040NR, enter the

Worksheet—Line 4

Keep for Your Records

amount from Schedule A (Form

1040NR), line 13.

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

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

Line 7—Refund of Taxes

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

Include any refund from Form 1040,

1040) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.

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

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

is attributable to state or local income

1 above that was paid on an eligible mortgage

taxes. Also include any refunds

(defined on this page). Include any mortgage

received in 2011 and included in

insurance premiums included on line 1 above that

income on Form 1040, line 21, that are

were paid in connection with an eligible mortgage

attributable to state or local personal

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

property taxes or general sales taxes,

1 above that was paid on a mortgage whose

foreign income taxes, or state, local, or

proceeds were used in a refinancing (including a

foreign real property taxes. Enter the

second or later refinancing) of an eligible mortgage.

total as a negative amount. If you

Include any mortgage insurance premiums included

include an amount from Form 1040, line

on line 1 above that were paid in connection with

21, you must enter a description and

such a mortgage. Do not include any interest paid

the amount next to the entry space for

on (or any mortgage insurance premiums paid in

line 7. For example, if you include a

connection with) the part of the balance of the new

refund of real property taxes, enter “real

mortgage that exceeded the balance of the original

property” and the amount next to the

eligible mortgage immediately before it was

entry space.

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

refinanced mortgage immediately before that

Line 8—Investment Interest

mortgage was refinanced) . . . . . . . . . . . . . . . . . . 3.

If you filled out Form 4952, Investment

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

Interest Expense Deduction, for your

1 above that was paid on a mortgage:

regular tax, you will need to fill out a

•

Taken out before July 1, 1982, and

second Form 4952 for the AMT as

•

Secured, at the time the mortgage was taken out,

follows.

by your main home or a qualified dwelling used by

you or your family (see definitions on this page).

Step 1. Follow the Form 4952

Do not include any amount entered on line 2 or line

instructions for line 1, but also include

3 above . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.

the following amounts when completing

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

line 1.

•

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

Any interest expense on Form 6251,

line 4, that was paid or accrued on

indebtedness attributable to property

held for investment within the meaning

condominium, or mobile home not used

Line 3—Taxes

of section 163(d)(5) (for example,

on a transient basis.

interest on a home equity loan whose

Enter the amount of all taxes from

Family. Family includes only your

proceeds were invested in stocks or

Schedule A (Form 1040), line 9, except

brothers and sisters (whether by whole

bonds).

any generation-skipping transfer taxes

•

or half blood), your spouse, your

Any interest that would have been

on income distributions.

ancestors, and your lineal descendants.

deductible if tax-exempt interest on

Be sure to include any state and

Example. In 2011, Dave and

private activity bonds were includible in

local general sales taxes from Schedule

Jennifer paid $10,000 in interest on a

gross income.

A, line 5.

mortgage they took out to buy their

Step 2. Enter your AMT disallowed

Form 1040NR. If you are filing Form

home (an eligible mortgage). In May

investment interest expense from 2010

1040NR, enter the amount of all taxes

2011, they refinanced that mortgage

on line 2. Complete line 3.

from Schedule A (Form 1040NR), line

and paid $9,000 in interest through the

Step 3. When completing Part II,

1, except any generation-skipping

rest of the year. The balance of the new

refigure the following amounts, taking

transfer taxes on income distributions.

mortgage is the same as the balance of

into account all adjustments and

the old mortgage. In July 2011, they

Line 4—Home Mortgage

preferences.

obtained a home equity loan on their

•

Gross income from property held for

Interest Adjustment

home and used the proceeds to buy a

investment.

new car. They paid $5,000 in interest

•

Complete the Home Mortgage Interest

Net gain from the disposition of

on the home equity loan in 2011. They

Adjustment Worksheet to figure the

property held for investment.

enter the following amounts on the

•

amount to enter on this line. The

Net capital gain from the disposition

Home Mortgage Interest Adjustment

definitions of certain terms used in the

of property held for investment.

Worksheet: $24,000 on line 1 ($10,000

worksheet are as follows.

•

Investment expenses.

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

Eligible mortgage. An eligible

line 2, $9,000 on line 3, $ -0- on line 4,

Include on line 4a any tax-exempt

mortgage is a mortgage whose

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

interest income from private activity

proceeds were used to buy, build, or

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

bonds that must be included on Form

substantially improve your main home

minus $19,000).

6251, line 12. If you have any

or a second home that is a qualified

investment expenses that would have

dwelling. A mortgage whose proceeds

been deductible if the interest on the

were used to refinance another

bonds were includible in gross income

mortgage is not an eligible mortgage.

for the regular tax, you can use them to

Qualified dwelling. A qualified

reduce the amount on line 4a or include

dwelling is any house, apartment,

them on line 5.

-2-

Instructions for Form 6251 (2011)

Instructions For Form 6251 - 2011 Page 3

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