Instructions For Form 6251 - Alternative Minimum Tax-Individuals

However, only $3,000 of the $65,000

property eligible for the special

depreciation if it was placed in service

net capital loss is allowed for 2017 for

depreciation allowance (discussed

after 2015.

the AMT. The difference between the

later));

Any part of the cost of any property

regular tax gain of $50,000 and the

Section 1250 property placed in

for which you elected to take a section

$3,000 loss allowed for the AMT results

service after 1998 that isn’t depreciated

179 expense deduction. The reduction

in a $53,000 negative adjustment to

for the regular tax using the straight line

to the depreciable basis of section 179

include on line 17.

method; and

property by the amount of the section

Tangible property placed in service

179 expense deduction is the same for

Ash has an AMT capital loss

after 1986 and before 1999. (If the

the regular tax and the AMT.

carryover from 2017 to 2018 of $62,000,

transitional election was made under

Motion picture films, videotapes, or

of which $22,000 is short-term and

section 203(a)(1)(B) of the Tax Reform

sound recordings.

$40,000 is long-term. If he has no other

Act of 1986, this rule applies to property

Property depreciated under the

Form 8949 or Schedule D transactions

placed in service after July 31, 1986.)

unit-of-production method or any other

for 2018, his adjustment reported on his

method not expressed in a term of

2018 Form 6251 would be limited to

years.

What Depreciation Isn’t Refigured

($3,000), the amount of his capital loss

Indian reservation property that

limitation for 2018.

for the AMT?

meets the requirements of section

Line 18—Post-1986

Don’t refigure depreciation for the AMT

168(j).

for the following.

Depreciation

Qualified revitalization expenditures

Residential rental property placed in

for which you elected to claim the

To avoid duplication, any AMT

service after 1998.

commercial revitalization deduction

adjustment or tax preference

Nonresidential real property with a

under section 1400I.

item taken into account on this

class life of 27.5 years or more placed in

A natural gas gathering line placed in

CAUTION

line shouldn’t be taken into account in

service after 1998 that is depreciated for

service after April 11, 2005.

figuring the amount to enter on any

the regular tax using the straight line

other adjustment or tax preference item

method.

How Is Depreciation Refigured for

line of this form.

Other section 1250 property placed in

the AMT?

service after 1998 that is depreciated for

This section describes when

the regular tax using the straight line

Property placed in service before

depreciation must be refigured for the

method.

1999. Refigure depreciation for the

AMT and how to figure the amount to

Property (other than section 1250

AMT using ADS, with the same

enter on line 18.

property) placed in service after 1998

convention used for the regular tax. See

that is depreciated for the regular tax

Don’t use line 18 for depreciation

the following table for the method and

using the 150% declining balance

related to the following.

recovery period to use.

method or the straight line method.

Employee business expenses

Property for which you elected to use

claimed on line 21 of Schedule A (Form

Property Placed in Service Before 1999

the alternative depreciation system

1040) or line 7 of Schedule A (Form

IF the property is...

THEN use the...

(ADS) of section 168(g) for the regular

1040NR). You should have already

tax.

section 1250 property

straight line method

taken this adjustment into account on

Qualified property that is or was

over 40 years.

line 5 as part of your miscellaneous

eligible for a special depreciation

itemized deductions.

tangible property

straight line method

allowance if the depreciable basis of the

Passive activities. Take this

(other than section

over the property's

property is the same for the AMT and

1250 property)

AMT class life.

adjustment into account on line 19.

the regular tax. This applies to any

depreciated using

An activity for which you aren’t at risk.

straight line method for

special depreciation allowance,

Take this adjustment into account on

the regular tax

including those for disaster assistance

line 20.

property, reuse and recycling property,

Income or loss from a partnership or

any other tangible

150% declining

cellulosic biofuel plant property, second

property

balance method,

an S corporation if the basis limitations

generation biofuel plant property, New

switching to straight

apply. Take this adjustment into account

line method the first

York Liberty Zone property, Gulf

on line 20.

tax year it gives a

Opportunity Zone property, and Kansas

A tax shelter farm activity. Take this

larger deduction, over

disaster area recovery assistance

adjustment into account on line 27.

the property's AMT

property. The special allowance is

class life.

deductible for the AMT, and no

What Depreciation Must Be

adjustment is required for any

Refigured for the AMT?

depreciation figured on the remaining

Generally, you must refigure

basis of the qualified property because

Property placed in service after

depreciation for the AMT, including

the depreciable basis of the property is

1998. Use the same convention and

depreciation allocable to inventory

the same for the AMT and the regular

recovery period used for the regular tax.

costs, for:

tax. If you elected not to have any

For property other than section 1250

Property placed in service after 1998

special depreciation allowance apply,

property, use the 150% declining

that is depreciated for the regular tax

the property may be subject to an AMT

balance method, switching to straight

using the 200% declining balance

adjustment for depreciation if it was

line the first tax year it gives a larger

method (generally 3-, 5-, 7-, and

placed in service before 2016. It is not

deduction. For section 1250 property,

10-year property under the modified

subject to an AMT adjustment for

use the straight line method.

accelerated cost recovery system

(MACRS), except for certain qualified

-6-

Instructions for Form 6251 (2017)

Instructions For Form 6251 - Alternative Minimum Tax-Individuals - 2017 Page 6

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