Instructions For Form 6251 - 2011 (Page 9 of 13) in pdf

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Alcohol and Cellulosic Biofuel

Self-employed SEP, SIMPLE, and

You have a section 179 deduction

qualified plans deduction (Form 1040,

carryforward of $300 for the AMT.

Fuels Credit and Biodiesel and

line 28, or Form 1040NR, line 28).

Renewable Diesel Fuels Credit

You include a $700 negative

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IRA deduction (Form 1040, line 32,

adjustment on line 27 because your

If your taxable income includes an

or Form 1040NR, line 32), affected by

section 179 deduction for the AMT is

amount from the alcohol and cellulosic

the earned income limitation of section

$700 greater than your allowable

biofuel fuels credit or the biodiesel and

219(b)(1)(B).

regular tax deduction. In the following

renewable diesel fuels credit under

Figure the difference between the

year, when you use the $1,000 regular

section 87, include that amount as a

AMT and regular tax amount for each

tax carryforward, you will have a $700

negative amount on line 27.

item. Combine the amounts for all your

positive related adjustment for the AMT

related adjustments and include the

Related Adjustments

because your AMT carryforward is only

total on line 27. Keep a copy of all

$300.

If you have an entry on line 8 because

computations for your records,

you deducted investment interest

Line 28—Alternative

including any AMT carryover and basis

allocable to an interest in a trade or

amounts.

Minimum Taxable Income

business, or on line 9, 13, 14, or 16

through 26, or you have any amount

If your filing status is married filing

Do not include on line 27 any

included on line 27 from pre-1987

separately and line 28 is more than

adjustment for an item you

depreciation, patron’s adjustment,

$223,900, you must include an

refigured on another line of this

CAUTION

pollution control facilities, or tax shelter

additional amount on line 28. If line 28

form (for example, line 9).

farm activities, you may have to refigure

is $372,800 or more, include an

Example. On your Schedule C

any item of income or deduction based

additional $37,225. Otherwise, include

(Form 1040) you have a net profit of

on a limit of income other than AGI or

25% of the excess of the amount on

$9,000 before figuring your section 179

modified AGI.

line 28 over $223,900. For example, if

deduction. You do not report any other

the amount on line 28 is $243,900,

Affected items include the following.

business income on your return. During

enter $248,900 instead — the additional

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the year, you purchased an asset for

Section 179 expense deduction

$5,000 is 25% of $20,000 ($243,900

$10,000 for which you elect to take the

(Form 4562, Depreciation and

minus $223,900).

section 179 deduction. You also have

Amortization, line 12).

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an AMT depreciation adjustment of

Special Rule for Holders of a

Expenses for business or rental use

$700 for other assets depreciated on

of your home.

Residual Interest in a REMIC

your Schedule C.

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Conservation expenses (Schedule F,

If you held a residual interest in a real

Your section 179 deduction for the

line 12).

estate mortgage investment conduit

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regular tax is limited to your net profit

Taxable IRA distributions (Form

(REMIC) in 2011, the amount you enter

(before any section 179 deduction) of

1040, line 15b, or Form 1040NR, line

on line 28 may not be less than the

$9,000. The $1,000 excess is a section

16b), if prior year IRA deductions were

amount on Schedule E, line 38, column

179 deduction carryforward for the

different for the AMT and the regular

(c). If the amount in column (c) is larger

regular tax.

tax.

than the amount you would otherwise

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enter on line 28, enter the amount from

Self-employed health insurance

For the AMT, your net profit is

column (c) instead and enter “Sch. Q”

deduction (Form 1040, line 29, or Form

$9,700, and you are allowed a section

on the dotted line next to line 28.

1040NR, line 29).

179 deduction of $9,700 for the AMT.

If your filing status is married filing

separately, be sure to include the

Exemption Worksheet—

additional amount that must be added

to line 28 (as explained above) before

Line 29

Keep for Your Records

you compare line 28 with the amount

on Schedule E, line 38, column (c).

Note. If Form 6251, line 28, is equal to or more than: $306,300 if single or head of household, $447,800

if married filing jointly or qualifying widow(er), or $223,900 if married filing separately, your exemption is

Part II—Alternative

zero. Do not complete this worksheet; instead, enter the amount from Form 6251, line 28, on line 30 and

go to line 31.

Minimum Tax

1. Enter: $48,450 if single or head of household; $74,450 if married

Line 29—Exemption Amount

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

separately . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.

If line 28 is more than the amount

2. Enter your alternative minimum taxable income

shown for your filing status in the

(AMTI) from Form 6251, line 28 . . . . . . . . . . . 2.

middle column of the chart on line 29,

3. Enter: $112,500 if single or head of household;

see the Exemption Worksheet to figure

$150,000 if married filing jointly or qualifying

the amount to enter on line 29.

widow(er); $75,000 if married filing separately

Certain Children Under Age 24

4. Subtract line 3 from line 2. If zero or less, enter

-0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.

Your exemption amount is limited to the

5. Multiply line 4 by 25% (.25) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.

amount of your earned income plus

6. Subtract line 5 from line 1. If zero or less, enter -0-. If any of the

$6,800 if condition 1, 2, or 3 below

three conditions under Certain Children Under Age 24 apply to

applies to you.

you, complete lines 7 through 10. Otherwise, stop here and

1. You were under age 18 at the

enter this amount on Form 6251, line 29, and go to Form 6251,

end of 2011.

line 30 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2. You were age 18 at the end of

7. Minimum exemption amount for certain children under age 24 . . . . 7.

$6,800

2011 and did not have earned income

8. Enter your earned income, if any (see instructions) . . . . . . . . . . . 8.

that was more than half of your support.

9. Add lines 7 and 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.

3. You were a full-time student over

10. Enter the smaller of line 6 or line 9 here and on Form 6251, line

age 18 and under age 24 at the end of

29, and go to Form 6251, line 30 . . . . . . . . . . . . . . . . . . . . . .

10.

2011 and did not have earned income

that was more than half of your support.

-8-

Instructions for Form 6251 (2011)

Instructions For Form 6251 - 2011 Page 9

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