Instructions For Form 6251 - 2011 (Page 7 of 13) in pdf

AMT deduction is more than the regular

Publicly Traded Partnership

Circulation costs (expenditures to

tax deduction, enter the difference as a

establish, maintain, or increase the

(PTP)

negative amount.

circulation of a newspaper, magazine,

If you had a loss from a PTP, refigure

or other periodical) deducted in full for

the loss using any AMT adjustments

In addition to the AMT adjustment to

the regular tax in the year they were

and preferences and any AMT prior

your deduction for depreciation, you

paid or incurred must be capitalized

year unallowed loss.

must also adjust the amount of

and amortized over 3 years for the

depreciation that was capitalized, if any,

AMT. Enter the difference between the

Tax Shelter Passive Farm

to account for the difference between

regular tax and AMT deduction. If the

Activities

the rules for the regular tax and the

AMT deduction is greater, enter the

Refigure any gain or loss from a tax

AMT. Include on this line the current

difference as a negative amount.

shelter passive farm activity taking into

year adjustment to taxable income, if

If you had a loss on property for

account all AMT adjustments and

any, resulting from the difference.

which circulation costs have not been

preferences and any AMT prior year

fully amortized for the AMT, your AMT

unallowed losses. If the amount is a

Line 19—Passive Activities

deduction is the smaller of (a) the

gain, include it on the AMT Form 8582.

amount of the loss allowable for the

Refigure your passive activity gains and

If the amount is a loss, do not include it

costs had they remained capitalized or

losses for the AMT by taking into

on the AMT Form 8582. Carry the loss

(b) the remaining costs to be amortized

account all adjustments and

forward to 2012 to see if you have a

for the AMT.

preferences and any AMT prior year

gain or loss from tax shelter passive

unallowed losses that apply to that

farm activities for 2012.

Line 22—Long-Term

activity. You may fill out a second Form

Insolvency

Contracts

8582, Passive Activity Loss Limitations,

and the other forms or schedules on

If at the end of the tax year your

For the AMT, you generally must use

which your passive activities are

liabilities exceed the fair market value

the percentage-of-completion method

reported, to determine your passive

of your assets, increase your passive

described in section 460(b) to

activity loss allowed for the AMT, but do

activity loss allowed by that excess (but

determine your income from any

not file the second set of forms and

not by more than your total loss). See

long-term contract (defined in section

schedules with your tax return.

section 58(c)(1).

460(f)). However, this rule does not

apply to any home construction contract

Example. You are a partner in a

Line 20—Loss Limitations

(as defined in section 460(e)(6)). For

partnership and the Schedule K-1

For passive activities, see the line 19

contracts excepted from the

(Form 1065) you received shows the

instructions instead. For tax shelter

percentage-of-completion method for

following.

farm activities (that are not passive),

the regular tax by section 460(e)(1),

•

A passive activity loss of $4,125,

see the line 27 instructions.

you must use the simplified procedures

•

A depreciation adjustment of $500 on

for allocating costs outlined in section

Refigure your gains and losses from

post-1986 property, and

460(b)(3) to determine the percentage

activities for which you are not at risk

•

An adjustment of $225 on the

of completion.

and basis limitations applicable to

disposition of property.

partnerships and S corporations by

Enter the difference between the

taking into account all AMT adjustments

AMT and regular tax income. If the

Because the two adjustments above

and preferences that apply. See

AMT income is smaller, enter the

are from the passive activity and are

sections 59(h), 465, 704(d), and

difference as a negative amount.

not allowed for the AMT, you must first

1366(d).

reduce the passive activity loss by

Note. If you are required to use the

those amounts. The result is a passive

Enter the difference between the

percentage-of-completion method for

activity loss for the AMT of $3,400. You

either the regular tax or the AMT, you

amount that would be reported for the

then enter this amount on the AMT

activity on Schedule C, C-EZ, E, or F or

may owe or be entitled to a refund of

Form 8582 and refigure the allowable

Form 4835 for the AMT and the regular

interest for the tax year the contract is

passive activity loss for the AMT.

tax amount. If (a) the AMT loss is more

completed or adjusted. For details, see

than the regular tax loss, (b) the AMT

Form 8697, Interest Computation Under

the Look-Back Method for Completed

The amount of any AMT passive

gain is less than the regular tax gain, or

TIP

activity loss that is not

Long-Term Contracts.

tax gain, enter the adjustment as a

deductible and is carried

Line 23—Mining Costs

negative amount.

forward is likely to differ from the

regular tax amount, if any. Therefore,

The AMT amount of any gain or loss

Do not make this adjustment for

keep adequate records for both the

from activities for which you are not at

costs for which you elected the

AMT and regular tax.

risk is likely to differ from the regular tax

optional 10-year write-off for the

CAUTION

amount. Your AMT basis in

Enter the difference between the

regular tax.

partnerships and S corporations is also

amount that would be reported for the

likely to differ from your regular tax

Mining exploration and development

activity on Schedule C, C-EZ, E, or F or

costs deducted in full for the regular tax

basis. Therefore, keep adequate

Form 4835, Farm Rental Income and

in the tax year they were paid or

records for both the AMT and regular

Expenses, for the AMT and the regular

incurred must be capitalized and

tax.

tax amount. If (a) the AMT loss is more

amortized over 10 years for the AMT.

Enter any adjustment for amounts

than the regular tax loss, (b) the AMT

Enter the difference between the

gain is less than the regular tax gain, or

reported on Form 8949, Schedule D,

regular tax and AMT deduction. If the

Form 4684, or Form 4797 for the

AMT deduction is greater, enter the

tax gain, enter the adjustment as a

activity on line 17 instead of line 20.

difference as a negative amount.

negative amount.

Line 21—Circulation Costs

If you had a loss on property for

Enter any adjustment for amounts

which mining costs have not been fully

reported on Form 8949, Schedule D,

Do not make this adjustment for

amortized for the AMT, your AMT

Form 4684, or Form 4797 for the

costs for which you elected the

deduction is the smaller of (a) the loss

activity on line 17 instead of line 19.

optional 3-year write-off for the

allowable for the costs had they

CAUTION

See the instructions for line 17.

regular tax.

remained capitalized or (b) the

-6-

Instructions for Form 6251 (2011)

Instructions For Form 6251 - 2011 Page 7

Related Articles

Related forms

Related Categories