Instructions For Form 6251 - Alternative Minimum Tax-Individuals

Otherwise, figure your AMTFTC as

than the $20,000 threshold under the

Don’t adjust the amount of any

follows.

adjustment exception. If you qualify for

foreign source capital gain

the adjustment exception, your election

distributions you elected to

Step 1. Separate your foreign source

CAUTION

also applies when you determine

include on line 4g of AMT Form 4952.

income into categories. See the

whether you must adjust your capital

Instructions for Form 1116 for

gain distributions or other capital gains

Individuals with other capital

information about categories of income.

or losses. It also applies to Step 4.

gains or losses. If any capital gain or

Complete a separate AMT Form 1116

loss is different for the AMT, use

To adjust your foreign source

for each separate category of income.

amounts as refigured for the AMT to

qualified dividends, multiply your foreign

Write “AMT” and specify the category of

complete this step. Use Worksheet A in

source qualified dividends in each

income in the top margin of each Form

the Instructions for Form 1116 to

separate category by 0.5357 if the

1116.

determine the adjustments you must

foreign source qualified dividends are

make to your foreign source capital

Figuring high-taxed income.

taxed at a rate of 15%, and by 0.7143 if

gains or losses (as refigured for the

When applying the separate categories

they are taxed at a rate of 20%. Include

AMT) if you have foreign source capital

of income, use the applicable AMT rate

the results on line 1a of the applicable

gains or losses (as refigured for the

instead of the regular tax rate to

AMT Form 1116.

AMT) in no more than two separate

determine if any income is “high-taxed.”

You adjust your foreign source

categories and any of the following

Step 2. Complete Part I of each AMT

qualified dividends taxed at the 0% rate

apply.

Form 1116 using only income and

by not including them on line 1a.

You aren’t required to make

deductions that are allowed for the AMT

Amounts taxed at the 0% rate are on

adjustments to your foreign source

and attributable to sources outside the

line 11 of the Qualified Dividends and

qualified dividends under the rules

United States.

Capital Gain Tax Worksheet in the Form

described earlier (or you wouldn’t be

1040 instructions, line 9 of the Qualified

required to make those adjustments if

Simplified limitation election. If

Dividends and Capital Gain Tax

you had foreign source qualified

you previously made or are making the

Worksheet in the Form 1040NR

dividends).

simplified limitation election, skip Part I

instructions, or line 20 of the

Line 15 or 16 of the AMT Schedule D

and go to Step 3. For more information

Schedule D Tax Worksheet.

(Form 1040) is zero or a loss.

about the simplified limitation election,

On the AMT Qualified Dividends and

see

Simplified Limitation

Election, later.

Don’t adjust the amount of any

Capital Gain Tax Worksheet in the Form

foreign source qualified

Foreign source qualified dividends

1040 instructions, (a) line 3 of that

dividends you elected to include

and capital gains. If you have any

CAUTION

worksheet minus the amount on Form

on line 4g of AMT Form 4952.

foreign source qualified dividends or

4952, line 4e, that you elected to include

foreign source capital gains (including

on Form 4952, line 4g, is zero or less,

Individuals with capital gain

any foreign source capital gain

(b) line 7 of that worksheet is zero, or (c)

distributions only. If you have no

distributions) or losses, use the

capital gains or losses other than capital

line 25 of that worksheet is equal to or

following instructions to determine

gain distributions from box 2a of

greater than line 26.

whether you must make adjustments to

Form(s) 1099-DIV or substitute

On the AMT Qualified Dividends and

those amounts before you include the

statement(s), you must adjust your

Capital Gain Tax Worksheet in the Form

amounts on line 1a or line 5 of the AMT

foreign source capital gain distributions

1040NR instructions, (a) line 3 of that

Form 1116.

if you are required to adjust your foreign

worksheet is zero, (b) line 5 of that

source qualified dividends under the

worksheet is zero, or (c) line 23 of that

Foreign qualified dividends. You

rules just described or you would be

worksheet is equal to or greater than

must adjust your foreign source

required to adjust your foreign source

line 24.

qualified dividends before you include

On the AMT Schedule D Tax

those amounts on line 1a of the AMT

qualified dividends if you had any.

Worksheet (Form 1040), (a) line 18 is

Form 1116 if:

To adjust your foreign source capital

zero, (b) line 9 is zero or less, or (c)

Line 62 of Form 6251 is smaller than

gain distributions, multiply your foreign

line 43 is equal to or greater than

line 63, and

source capital gain distributions in each

line 44.

Line 41 of Form 6251 is greater than

separate category by 0.5357 if the

zero.

Use Worksheet B in the Instructions

foreign source capital gain distributions

for Form 1116 if you:

are taxed at a rate of 15%, and by

But you don’t need to make any

Can’t use Worksheet A,

0.7143 if they are taxed at a rate of

adjustments if:

Have foreign source capital gains and

20%. Include the results on line 1a of

You qualify for the adjustment

the applicable AMT Form 1116.

losses in no more than two separate

exception under Qualified Dividends

categories,

and Capital Gain Tax Worksheet

You adjust your foreign source

Didn’t have any item of unrecaptured

(Individuals) or Adjustments to foreign

capital gain distributions taxed at the 0%

section 1250 gain or 28% rate gain or

qualified dividends under Schedule D

rate by not including them on line 1a.

loss for the AMT, and

Filers in the Instructions for Form 1116,

Amounts taxed at the 0% rate are on

Don’t have any capital gains taxed at

and

line 11 of the Qualified Dividends and

a rate of 0% or 20%.

Line 41 of Form 6251 isn’t more than

Capital Gain Tax Worksheet in the Form

$187,800 ($93,900 if married filing

1040 instructions, line 9 of the Qualified

Instructions for Worksheets A and

separately or if you checked filing status

Dividends and Capital Gain Tax

B. When you complete Worksheet A or

box 3, 4, or 5 on Form 1040NR).

Worksheet in the Form 1040NR

Worksheet B, use foreign source capital

instructions, or line 20 of the

Use your capital gains and losses as

gains and losses, as refigured for the

Schedule D Tax Worksheet.

refigured for the AMT to determine

AMT if necessary, and don’t use any

whether your total amounts are less

-12-

Instructions for Form 6251 (2017)

Instructions For Form 6251 - Alternative Minimum Tax-Individuals - 2017 Page 12

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