Instructions For Form 6251 - Alternative Minimum Tax-Individuals

amount from line 9 of the Itemized

total as a negative amount. If you

into account all adjustments and

Deductions Worksheet in the

include an amount from Form 1040,

preferences.

Instructions for Schedule A (Form

line 21, you must enter a description

Gross income from property held for

1040). Enter it as a negative amount.

and the amount next to the entry space

investment.

for line 7. For example, if you include a

Net gain from the disposition of

If Form 1040, line 38, isn’t more than

refund of real property taxes, enter “real

property held for investment.

the amount listed above for your filing

property” and the amount next to the

Net capital gain from the disposition

status, enter -0-.

entry space.

of property held for investment.

Investment expenses.

Form 1040NR. Enter the amount from

Line 8—Investment Interest

line 9 of the Itemized Deductions

Include on line 4a any tax-exempt

If you filled out Form 4952, Investment

Worksheet in the instructions for Form

interest income from private activity

Interest Expense Deduction, for your

1040NR if you are filing Form 1040NR

bonds that must be included on Form

regular tax, you will need to fill out a

and line 37 of Form 1040NR is over the

6251, line 12. If you have any

second Form 4952 for the AMT as

amount listed below for your filing

investment expenses that would have

follows.

status:

been deductible if the interest on the

$261,500 and you checked filing

Step 1. Follow the Form 4952

bonds were includible in gross income

status box 1 or 2,

instructions for line 1, but also include

for the regular tax, you can use them to

$156,900 and you checked filing

the following amounts when completing

reduce the amount on line 4a or include

status box 3, 4, or 5, or

line 1.

them on line 5.

$313,800 and you checked filing

Any interest expense on Form 6251,

On line 4g, enter the smaller of:

status box 6.

line 4, that was paid or accrued on

1. The amount from line 4g of your

Enter it as a negative amount.

indebtedness attributable to property

regular tax Form 4952, or

held for investment within the meaning

If Form 1040NR, line 37, isn’t more

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

2. The total of lines 4b and 4e of this

than the amount just listed for your filing

interest on a home equity loan whose

AMT Form 4952.

status, enter -0-.

proceeds were invested in stocks or

Line 7—Refund of Taxes

Step 4. Complete Part III.

bonds).

Include any refund from Form 1040,

Any interest that would have been

Enter on Form 6251, line 8, the

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

deductible if tax-exempt interest on

difference between line 8 of your AMT

private activity bonds were includible in

is attributable to state or local income

Form 4952 and line 8 of your regular tax

gross income.

taxes. Also include any refunds

Form 4952. If your AMT expense is

received in 2017 and included in income

greater, enter the difference as a

Step 2. Enter your AMT disallowed

on Form 1040, line 21, that are

negative amount.

investment interest expense from 2016

attributable to state or local personal

on line 2. Complete line 3.

Investment interest expense that

property taxes or general sales taxes,

isn’t an itemized deduction. If you

foreign income taxes, or state, local, or

Step 3. When completing Part II,

didn’t itemize deductions and you had

foreign real property taxes. Enter the

refigure the following amounts, taking

investment interest expense, don’t enter

an amount on Form 6251, line 8, unless

you reported investment interest

Home Mortgage Interest Adjustment

expense on Schedule E, Supplemental

Worksheet—Line 4

Keep for Your Records

Income and Loss (Form 1040). If you

did, follow the steps above for

1. Enter the total of the home mortgage interest you deducted on lines 10 through

completing Form 4952. Allocate the

12 of Schedule A (Form 1040) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.

investment interest expense allowed on

2. Enter the part, if any, of the interest included on line 1 above

line 8 of the AMT Form 4952 in the

that was paid on an eligible mortgage (defined in the line 4

same way you did for the regular tax.

instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.

Enter on Form 6251, line 8, the

3. Enter the part, if any, of the interest included on line 1 above

difference between the amount allowed

that was paid on a mortgage whose proceeds were used in

a refinancing (including a second or later refinancing) of an

on Schedule E for the regular tax and

eligible mortgage. Don’t include any interest paid on the part

the amount allowed on Schedule E for

of the balance of the new mortgage that exceeded the

the AMT.

balance of the original eligible mortgage immediately before

Line 9—Depletion

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

refinanced mortgage immediately before that mortgage was

Refigure your depletion deduction for

refinanced) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.

the AMT. To do so, use only income

4. Enter the part, if any, of the interest included on line 1 above

and deductions allowed for the AMT

that was paid on a mortgage:

when refiguring the limit based on

• Taken out before July 1, 1982, and

taxable income from the property under

• Secured, at the time the mortgage was taken out, by your

section 613(a) and the limit based on

main home or a qualified dwelling used by you or your

taxable income, with certain

family (see definitions).

Don’t include any amount entered on line 2 or line 3

adjustments, under section 613A(d)(1).

above . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.

Also, your depletion deduction for

mines, wells, and other natural deposits

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

under section 611 is limited to the

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

property's adjusted basis at the end of

the year, as refigured for the AMT,

Instructions for Form 6251 (2017)

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Instructions For Form 6251 - Alternative Minimum Tax-Individuals - 2017 Page 3

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