Instructions For Form 6251 - Alternative Minimum Tax-Individuals

personal property other than recovery

Don’t use a refigured loss in the

allocable to an interest in a trade or

property, enter the amount by which

current tax year to offset gains from

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

your regular tax depreciation using the

other tax shelter farm activities. Instead,

through 26, or you have any amount

pre-1987 rules exceeds the

suspend any refigured loss and carry it

included on line 27 from pre-1987

depreciation allowable using the straight

forward indefinitely until (a) you have a

depreciation, patron's adjustment,

line method. For leased 10-year

gain in a subsequent tax year from that

pollution control facilities, or tax shelter

recovery property and leased 15-year

same activity or (b) you dispose of the

farm activities, you may have to refigure

public utility property, enter the amount

activity.

any item of income or deduction based

by which your regular tax depreciation

on a limit of income other than AGI or

Enter the difference between the

exceeds the depreciation allowable

modified AGI.

amount that would be reported for the

using the straight line method with a

activity on Schedule E or F or Form

half-year convention, no salvage value,

Affected items include the following.

4835 for the AMT and the regular tax

and a recovery period of 15 years (22

Section 179 expense deduction

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

years for 15-year public utility property).

(Form 4562, Depreciation and

the regular tax loss, (b) the AMT gain is

Amortization, line 12).

less than the regular tax gain, or (c) you

Figure the excess of the regular tax

Expenses for business or rental use

have an AMT loss and a regular tax

depreciation over the AMT depreciation

of your home.

gain, enter the adjustment as a negative

separately for each property and include

Conservation expenses (Schedule F,

amount.

on line 27 only positive amounts.

line 12).

Taxable IRA distributions (Form

Enter any adjustment for amounts

1040, line 15b, or Form 1040NR,

Patron's Adjustment

reported on Form 8949, Schedule D,

line 16b), if prior year IRA deductions

Distributions you received from a

Form 4684, or Form 4797 for the activity

were different for the AMT and the

cooperative may be includible in

on line 17 instead of line 27.

regular tax.

income. Unless the distributions are

Self-employed health insurance

nontaxable, include on line 27 the total

Charitable Contributions of Certain

deduction (Form 1040, line 29, or Form

AMT patronage dividend adjustment

1040NR, line 29).

Property

reported to you by the cooperative, such

Self-employed SEP, SIMPLE, and

as on Form 1099-PATR.

If you made a charitable contribution of

qualified plans deduction (Form 1040,

property to which section 170(e) applies

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

and you had a different basis for AMT

Pollution Control Facilities

IRA deduction (Form 1040, line 32, or

purposes, you may have to make an

Form 1040NR, line 32), affected by the

The section 169 election to amortize the

adjustment. See section 170(e) for

earned income limitation of section

basis of a certified pollution control

details.

219(b)(1)(B).

facility over a 60-month or 84-month

period isn’t available for the AMT. For

Biofuel Producer Credit and

Figure the difference between the

facilities placed in service before 1999,

AMT and regular tax amount for each

Biodiesel and Renewable Diesel

figure the AMT deduction using ADS.

item. Combine the amounts for all your

For facilities placed in service after

Fuels Credit

related adjustments and include the

1998, figure the AMT deduction under

If your taxable income includes the

total on line 27. Keep a copy of all

MACRS using the straight line method.

amount of the biofuel producer credit or

computations for your records, including

Enter the difference between the regular

biodiesel and renewable diesel fuels

any AMT carryover and basis amounts.

tax and AMT deduction. If the AMT

credit, include that amount as a

deduction is more than the regular tax

Don’t include on line 27 any

negative amount on line 27.

deduction, enter the difference as a

adjustment for an item you

negative amount.

refigured on another line of this

Net Qualified Disaster Loss

CAUTION

form (for example, line 9).

If you filed Schedule A to claim an

Tax Shelter Farm Activities

Example. On your Schedule C

increased standard deduction on Form

Figure this adjustment only if you have a

(Form 1040) you have a net profit of

1040 due to a loss you suffered related

gain or loss from a tax shelter farm

$9,000 before figuring your section 179

to property in a Presidentially declared

activity (as defined in section 58(a)(2))

deduction. You don’t report any other

disaster area, then include on line 27

that isn’t a passive activity. If the activity

business income on your return. During

the following amount based on your

is passive, you must include it with your

the year, you purchased an asset for

filing status.

other passive activities on line 19.

$10,000 for which you elect to take the

$6,350 if single or married, filing

section 179 deduction. You also have

separately;

Refigure all gains and losses you

an AMT depreciation adjustment of

$12,700 if married, filing jointly or

reported for the regular tax from tax

$700 for other assets depreciated on

qualifying widow(er); or

shelter farm activities by taking into

your Schedule C.

$9,350 if head of household.

account any AMT adjustments and

Your section 179 deduction for the

preferences. Determine your tax shelter

If you filed Schedule A to itemize

regular tax is limited to your net profit

farm activity gain or loss for the AMT

your deductions, then don't make this

(before any section 179 deduction) of

using the same rules you used for the

adjustment.

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

regular tax with the following

179 deduction carryforward for the

modifications.

Related Adjustments

regular tax.

No refigured loss is allowed, except

to the extent you are insolvent (see

If you have an entry on line 8 because

For the AMT, your net profit is

section 58(c)(1)).

you deducted investment interest

$9,700, and you are allowed a section

Instructions for Form 6251 (2017)

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Instructions For Form 6251 - Alternative Minimum Tax-Individuals - 2017 Page 9

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