2017 Instructions for Form 6251 - irs.gov

1 Userid: CPMS chema: instrxLeadpct: 100%Pt. size: Draft Ok to PrintAH XSL/XMLF ileid: .. ions/I6251/2017/A/XML/Cycle11/source(Ini t. & Date) _____Page 1 of 15 11:37 - 23-Feb-2018 The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before for Form 6251 Alternative Minimum Tax IndividualsDepartment of the TreasuryInternal Revenue ServiceSection references are to the Internal Revenue Code unless otherwise InstructionsFuture DevelopmentsFor the latest information about developments related to Form 6251 and its Instructions , such as legislation enacted after they were published, go 's New6251 Instructions reissued. The Instructions for Form 6251 have been revised and reissued due to recent legislation that extended certain tax benefits. These tax benefits include the fuel vehicle refueling property for mortgage insurance to these tax benefits have been added back to these Instructions Instructions for reporting a net qualified disaster loss also have been tax relief.

2 Disaster tax relief was enacted for those impacted by certain Presidentially declared disasters. The tax benefits provided by this relief include a deduction against AMT of any net qualified disaster loss, even if you are claiming the standard see if you were impacted by one of the Presidentially declared disasters eligible for this relief or to get more information about disaster tax relief, see Pub. AMT adjustment for medical ex-penses deducted on Schedule A (Form 1040). Public Law 115-97 extended the lower adjusted gross income threshold for deducting medical expenses on Schedule A (Form 1040) to all taxpayers for 2017. Line 2 shows as "Reserved for future use" because no AMT adjustment for this lower rate is required under the new law for amount. The exemption amount on Form 6251, line 29, has increased to $54,300 ($84,500 if married filing jointly or qualifying widow(er); $42,250 if married filing separately).AMT tax brackets. For 2017, the 26% tax rate applies to the first $187,800 ($93,900 if married filing separately) of taxable excess (the amount on line 30).

3 This change is reflected in lines 31, 42, and on itemized deductions. You can t deduct all of your itemized deductions for regular tax purposes if your adjusted gross income is more than:$156,900 if married filing separately,$261,500 if single,$287,650 if head of household, or$313,800 if married filing jointly or qualifying widow(er).This limit doesn t apply for the AMT. See the Instructions for line Must FileAttach Form 6251 to your return if any of the following statements is 6251, line 31, is greater than line claim any general business credit, and either line 6 (in Part I) or line 25 of Form 3800 is more than claim the qualified electric vehicle credit (Form 8834), the personal use part of the alternative fuel vehicle refueling property credit (Form 8911), or the credit for prior year minimum tax (Form 8801). total of Form 6251, lines 8 through 27, is negative and line 31 would be greater than line 34 if you did not take into account lines 8 through of FormUse Form 6251 to figure the amount, if any, of your alternative minimum tax (AMT).

4 The AMT is a separate tax that is imposed in addition to your regular tax. It applies to taxpayers who have certain types of income that receive favorable treatment, or who qualify for certain deductions, under the tax law. These tax benefits can significantly reduce the regular tax of some taxpayers with higher economic incomes. The AMT sets a limit on the amount these benefits can be used to reduce total use Form 6251 to figure your tentative minimum tax (Form 6251, line 33). You may need to know that amount to figure the tax liability limit on the credits listed under Who Must AMT AmountsFor the AMT, certain items of income, deductions, etc., receive different tax treatment than for the regular tax. Therefore, you will need to figure items for the AMT differently than you figured them for the regular tax. These Instructions will help you figure AMT items by using the amount you calculated for the regular tax and refiguring it for the AMT.

5 In some cases, it is easiest to refigure an item for AMT by completing a tax form or worksheet a second time using additional AMT Instructions . These Instructions refer to such a form or worksheet as an AMT version. If you do complete an AMT version of a form or worksheet, don t attach it to your tax return unless instructed to do so. For example, you may have to attach an AMT Form 1116, Foreign Tax Credit, to your return; see the Instructions for line you figure some deductions and credits for the AMT, carrybacks or carryforwards to other tax years may be different than what you figured for the regular tax. Examples are investment interest expense, a net operating loss, a capital loss, a passive activity loss, and the foreign tax credit. Your at-risk limits and basis amounts also may differ for the must keep records to support items reported on Form 6251 in case the IRS has questions about them. If the IRS examines your tax return, you may be asked to explain the items reported.

6 Good records will help you explain any item and arrive at the correct records that show how you figured income, deductions, etc. for the AMT. Also keep records of any items that you used to figure the AMT that differ from what you used to figure the regular tax. For example, you will need Feb 23, 2018 Cat. No. 64277 PPage 2 of 15 Fileid: .. ions/I6251/2017/A/XML/Cycle11/source11:3 7 - 23-Feb-2018 The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before separately figure and track certain carrybacks, carryforwards, basis amounts, depreciation, and loss limitation amounts that differ between the AMT and the regular you refigure an item for AMT by completing an AMT version of a form or worksheet, keep a copy of that AMT form or worksheet for your and ShareholdersIf you are a partner in a partnership or a shareholder in an S corporation, see Schedule K-1 and its Instructions to figure your adjustments or preferences from the partnership or S corporation to include on Form AliensIf you are a nonresident alien and you disposed of real property interests at a gain, you must make a special computation.

7 Fill in Form 6251 through line 30. If your net gain from the disposition of real property interests and the amount on line 28 are both greater than the tentative amount you figured for line 30, replace the amount on line 30 with the smaller of that net gain or the amount on line 28. Also, enter RPI on the dotted line next to line 30. Otherwise, don t change line for Prior Year Minimum TaxSee Form 8801, Credit for Prior Year Minimum Tax Individuals, Estates, and Trusts, if you paid AMT for 2016 or you had a minimum tax credit carryforward on your 2016 Form 8801. If you pay AMT for 2017, you may be able to take a credit on Form 8801 for Write-Off for Certain ExpendituresThere is no AMT adjustment for the following items if you elect for the regular tax to deduct them ratably over the period of time expenditures 3 years (section 173).Research and experimental expenditures 10 years (section 174(a)).Mining exploration and development costs 10 years (sections 616(a) and 617(a)).

8 Intangible drilling costs 60 months (section 263(c)).For information on making the election, see section 59(e) and Regulations section Also see Pub. 535, Business InstructionsIf you owe AMT, you may be able to lower your total tax (regular tax plus AMT) by claiming itemized deductions on Form 1040, even if your total itemized deductions are less than the standard deduction. This is because the standard deduction isn t allowed for the AMT and, if you claim the standard deduction on Form 1040, you can t claim itemized deductions for the I Alternative Minimum Taxable Income (AMTI)To avoid duplication, any adjustment or preference for line 5, 19, or 20 or for a tax shelter farm activity on line 27 must not be taken into account in figuring the amount to enter for any other adjustment or 1If Form 1040, line 43, includes a write-in amount (such as a capital construction fund deduction for commercial fishermen), adjust line 1 by the write-in qualified disaster loss.

9 If you filed Schedule A just to claim an increased standard deduction on Form 1040 due to a loss you suffered related to property in a Presidentially declared disaster area, then enter the amount from Form 1040, line 41, even though it has been reduced by the standard deduction, and go to line 7. You will include the amount of the standard deduction (before it was increased by any net qualified disaster loss) on line 1040NR. If you are filing Form 1040NR, enter the amount from Form 1040NR, line 39. If less than zero, enter as a negative 2 Line 2 is reserved for future 3 TaxesEnter the amount of all taxes from Schedule A (Form 1040), line 9, except any generation-skipping transfer taxes on income 1040NR. If you are filing Form 1040NR, enter the amount of all taxes from Schedule A (Form 1040NR), line 1, except any generation-skipping transfer taxes on income !Line 4 Home Mortgage Interest AdjustmentComplete the Home Mortgage Interest Adjustment Worksheet to figure the amount to enter on this line.

10 The definitions of certain terms used in the worksheet are as mortgage. An eligible mortgage is a mortgage whose proceeds were used to buy, build, or substantially improve your main home or a second home that is a qualified dwelling. A mortgage whose proceeds were used to refinance another mortgage isn t an eligible dwelling. A qualified dwelling is any house, apartment, condominium, or mobile home not used on a transient Family includes only your brothers and sisters (whether by whole or half blood), your spouse, your ancestors, and your lineal In 2017, Dave and Jennifer paid $10,000 in interest on a mortgage they took out to buy their home (an eligible mortgage). In May 2017, they refinanced that mortgage and paid $9,000 in interest through the rest of the year. The balance of the new mortgage is the same as the balance of the old mortgage. In July 2017, they obtained a home equity loan on their home and used the proceeds to buy a new car.