Form 6251 Alternative Minimum Tax Computation ———
Department of the Treasury P Attach to Forms 1040, 1040NR, 1041 or 990-T (Trust). 1 1) 83
Internal Revenue Service 33
Name(s) as shown on tax return Identifying number
1 Adjusted gross income from Form 1040, or Form 1040NR, line 33 (estates and trusts, see instructions) - 1
2 Deductions (estates and trusts, see instructions):
a (1)Medical and dental expense from Schedule A, line 7 . 2a(1)
(2) Multiply Form 1040, line 33 by 5% (.05) . 2a(2)
(3) Subtract line 2a(2) from line 2a(1).(Ifless than zero, enter zero) 2a(3) =
b Contributions from Schedule A, line 20 . a . 2b =
¢ Casualty and theft losses from Schedule A, line 21 - oa 2c
d Interest expense on property used as a residence from Schedule A, line 13 - 2d
€(1) Interest, other than line 2d above, from Schedule A, line 16 |2e(2)
(2)Net investment income an 2e(2)
(3) Enter the smaller of line 2e(1) 01 orline 2e(2) . [2e8)
f Gambling losses to the extent of gambling winnings from ‘Schedule A, line: 24 . 2f
g Estate tax allowable under section 691(c) from Schedule A we 2g
h Add lines 2a(3), b, c, d, e(3), f, and g Lae 2h
3 Subtract line 2hfromline1 . 3
4 Tax preference items:
a All-savers interest exclusion, and dividendexclusion . - - - - - - + fa
b 60% capital gain deduction . . . [4b
c Accelerated depreciation on nonrecovery yreal property or 1154 year rreal property .. [4
d Accelerated depreciation on leased personal property or leased recovery property
other than 15-year real property . . . 4d
e Amortization of certified pollution control facilities | we de
f Mining exploration and development costs coe woe at
g Circulation and research and experimentalexpenditures ......... 4g
h Reserves for losses on bad debts of financial institutions ...... 4h
i Depletion aa . we . 4i
j Incentive stock options . we eee ae 4j
k Intangible drilling costs . . oe . 4k
I Add lines 4a through 4k . Le ee . 4
5 Alternative minimum taxable income (add lines 3 and Ai) (short period retums, see instructions). 5
6 Enter: $40,000, if married filing joint return or surviving spouse we eee
$30,000, ifsingleorheadofhousehold .. 2... 1. ee eee \ 6
$20,000, if married filing separate return or estate ortrust we eee
7 Subtract line 6 from line 5. If zero or less, do not complete the rest of this form . 7
B Enter 20% ofline7 . . 8
9 Amount from Form 1040, line 49 or Form 1040NR, line 51 (Do not include Form 1040, line 3901 or 1040NR,
line 42.) (estates and trusts, see instructions) . 9
10 Subtract line 9 from line 8. If zero or less, enter zero 10
11 Foreign tax credit 41
12 Alternative minimum tax (subtract line li ‘from line 10). Enter on m1 Form 1040, line 1, Form LO40NR, tine
52, Form 1041, line 32, or Form 990-T, page 1, line 14 “112

Instructions

(Section References are to the Internal Revenue Code)
Paperwork Reduction Act Notice.— We ask for
this information to carry out the Internal
Revenue laws of the United States. We need it to
ensure that taxpayers are complying with these
laws and to allow us to figure and collect the
right amount of tax. You are required to give us
this information.

Purpose of Form.—Use this form to figure your
alternative minimum tax, but file it only if you
are liable. Individuals, estates or trusts may be
liable if they have any tax preference items listed
on line 4 or adjusted gross income of more than
line

Ifyou made an election under section 58(i),
enter zero on lines 4f, 4g, and 4k.

Minimum Tax Deferred From Earlier
Year(s).—If a net operating loss carryover from
an earlier year(s) reduces taxable income for
1983, and the net operating loss giving rise to
the carryover resulted in the deferral of
minimum tax in that earlier year(s), all or part of
the deferred minimum tax may be includible as
tax liability for 1983. Figure the deferred
minimum tax at 15% and complete and attach a
1982 Form 4625, Computation of Minimum
Tax—Individuals, lines 14 through 18. You may
attach a schedule following the format of Form
4625. Enter the amount from line 18 on Form
1040, line 51, or Form 1041, line 32 and write
"Form 4625."

Partners, Beneficiaries, etc.—If you are a:

(1) Partner or shareholder of an S corporation,

take into account separately your distributive

share of items of income and deductions that
enter into the computation of tax preference
items.

(2) Beneficiary of an estate or trust, see
section 58(c).

(3) Participant in a common trust fund,
see section 58(e).

(4) Shareholder or holder of beneficial interest
ina regulated investment company or a real
estate investment trust, see section 58(f).

Carryback and Carryover of Unused
Credits.— It may be necessary to figure the
carryback or carryover of unused credits. See
section 55(cX3).

(Continued on back)

Form 6251 (1983)


Line by Line Instructions

Line 1, Estates and Trusts.—Adjusted gross
income is figured in the same way as for an
individual except that the costs of the
administration of the estate or trust are allowed
in figuring adjusted gross income.

All taxpayers. —Do not include in adjusted
gross income, interest expense incurred to pur-
Chase or carry a limited business interest in a
partnership or S corporation.

Lines 2(a) through 2(g).—Do not include on
these lines any deduction that can be carried
back or forward as a net operating loss or forward
as a charitable contribution.

Individuals. —Complete Schedule A (Form
1040) for any deduction listed on these lines,
whether or not you completed it in figuring Form
1040, line 34(a)..

Estates and Trusts.—Enter on the applicable
line any deduction listed on these lines allowable
to the estate or trust. Include on line 2h the
deductions allowable under sections 642(c),
651(a), and 661(a)

Line 2(d).—Enter the part of Schedule A, line 13,
that is from debts you incurred in acquiring,
constructing, or substantially rehabilitating
property, other than a houseboat, which you, or
certain family members as listed in section
267(c)(4), use as a residence.

If you incurred the interest before July 1, 1982
the following applies. At the time you incurred the
interest, it must have been secured by property
which you, or certain family members as listed in
section 267(c)(4), used as a residence.

Line 2(e)(2).—Enter your investment income
minus investment expenses.

Investment income is your gross income from
interest, dividends, rents, and royalties, and any
amount treated as ordinary income under
sections 1245, 1250, and 1254. Do not include
income from a trade or business.Include as
investment income, your capital gain net income
from the sale or exchange of property held for
investment. Also include as investment income,
any income from a limited business interest, and
the amount to be entered on line 4(a).

Investment expenses are those expenses
allowable against the production of investment
income provided they are allowed in figuring
adjusted gross income and not includible in line 4.

Line 4(b), 60% Capital gain deduction. —

Individuals. —Enter your 60% capital gain
deduction from your Schedule D (Form 1040),
line 22, or Form 4798, line 9. If you had an entry
‘on Form 1040, line 14, enter 60% of your capital
gain distributions. Do not include the capital gain
deduction attributable to a sale or exchange of a
principal residence.

Estates and Trusts. —Enter the capital gain
deduction taken into account on Form 1041 or
990-T. However, an amount paid or permanently
set aside for a charitable purpose is not a tax
preference item.

Lines 4(c) and 4(d), Accelerated depreciation
on real property; Accelerated depreciation on
leased personal property or leased recovery
property other than 15-year real property.—If
you use the Class Life Asset Depreciation Range
(CLADR) System, use the asset guideline period
as the straight-line useful life to figure lines 4(c)
and (d).

For (c) but not (d), use any variance in useful
life under section 167(m)(1) as the straight-line
useful life.

Line 4(c).—For property other than recovery
property, enter the amount you get (never less
than zero) by subtracting the depreciation that
would have been allowable for the year if you had
used the straight-line method, from the
depreciation or amortization actually allowable.
Figure this amount separately for each property.

For 15-year real property, enter the amount by
which the deduction allowed under section
168(a) (or section 167 for section 167(k) proper-
ty) is more than the deduction which would have
been allowable had the property been
depreciated using a 15-year period and the
straight-line method without salvage value.

Line 4(d).—For leased property other than
recovery property, enter the amount you get
(never less than zero) by subtracting the
depreciation that would have been allowable for
the year if you had used the straight-line method,
from the depreciation or amortization actually
allowable. Figure this amount separately for each
property.

For leased recovery property other than 15-
year real property, enter the amount by which
your deduction under section 168(a) is more than
the deduction allowable using the straight-line
method with a half-year convention, no salvage
value, and the following recovery period:

3 year property... . Syears
5 year property... .. Byears
10 year property : 15 years
15 year public utility property........ 22 years

Note: /f the recovery period actually used is
longer than the recovery period in 4(c) or 4(d) ,
do not complete line 4(c) or 4(d).

Line 4(e), Amortization of certified pollution

control facilities. Enter the amount by which
the amortization you took for 1983 is more than
the depreciation deduction otherwise allowable.

Line 4(f), Mining exploration and development.
costs.—For each mine or other natural deposit
(other than an oil or gas well), enter the amount
by which the deductions you took under section
616(a) or 617 are more than the amount that
would have been allowable if you had amortized
the expenses over a ten-year period.

Line 4(g), Circulation and research and
experimental expenditures.—Enter the amount
by which the deductions you took for circulation
and research and experimental expenditures
under sections 173 or 174(a) are more than the
amount that would have been allowable under
section 58(i).

Line 4(h), Reserves for losses on bad debts of
financial institutions. —Enter your share of the
excess of the addition to the reserve for bad debts
over the reasonable addition to the reserve for
bad debts that would have been allowable if you
had maintained the bad debt reserve for all tax
years based on actual experience.

Line 4(j), Depletion.—in the case of mines,
wells, and other natural deposits, enter the
amount by which the deduction for depletion
under section 611 (including percentage deple-
tion for geothermal deposits), is more than the
adjusted basis of such property at the end of the
tax year. Figure the adjusted basis without regard
‘to the depletion deduction and figure the excess
separately for each property.

Line 4(j), Incentive stock options.—If you
received stock by the exercise of an incentive
stock option (as defined in section 422A), enter
the amount by which the fair market value of the
shares at the time of exercise was more than the
option price.

Line 4(\0, Intangible drilling costs.— Intangible
drilling costs are a tax preference item to the
extent that the excess intangible drilling costs are
more than your net income from oil, gas, and
geothermal properties.

Figure excess intangible drilling costs as
follows: From the allowable intangible drilling and
development costs (except for costs in drilling a
nonproductive well), subtract the amount that
would have been allowable if you had capitalized
these costs and either amortized them over the
120 months that started when production began,
or treated them according to any election you
made under section 57(d)(2).

Your net income from oil, gas, and geothermal
properties is your gross income from them, minus
the deductions allocable to them, except for
excess intangible drilling costs and nonproductive
well costs.

Figure the line 4(k) amount separately for oi
and gas properties which are not geothermal
deposits and for all properties which are
geothermal deposits.

Lines 5 and 8.—f this is a short period return,
use the formula in section 443(d)(1) to
determine the amount to enter on these lines.

Nonresident Alien Individuals. —If you
disposed of U.S. real property interests at a gain,
see Form 1040NR instructions for a special rule
in figuring line 8.

Line 9, Estates and trusts.—Enter the amount
from Form 1041, line 30. Do not include any tax
from Forms 4970, 4972 or 5544.

Line 11, Foreign Tax Credit.—If line 10 is more
than zero, and you incurred foreign taxes and
elect to take them as a credit, enter on line 11
the foreign tax credit allowed against the
alternative minimum tax. Figure this credit as
follows:

(1) Use and attach a separate Form 1116 for
each type of income specified at the top of Form

(2) Print across the top of each Form 1116
used: “ALT MIN TAX.””

(3) Part I—Fill in a new Part | using your
income, deductions and tax preference items
used in figuring alternative minimum taxable
income from sources outside the U.S. Part I!
need not be completed.

(4) Part Il.—

(a) Skip lines 1 to 4.
(b) Insert on line 5 the result of the
following:

(i) the amount from Part Ill, ine 5 of
the Form 1116 used to figure the
credit allowed against your regular
tax, minus

(ij) the amount from Part Ill, line 17 of
that Form 1116, plus

(ii) the smaller of (A) the amount from
Part Ill, line 17 of that Form 1116,
or (B) Form 6251, line 10 (or if
more than one Form 1116 is being
used, an allocable portion of Form
6251, line 10).

(c) Complete lines 6 through 8, using
the result of step 3 for line 6.
(d) Skip lines 9 and 10

(e) Line 11.—Enter Form 6251, line 5.
(f) Complete line 12 as indicated in Part Ill.
(g) Skip lines 13 and 14.
(h) Line 15.—Enter Form 6251, line 8.
(i) Complete lines 16 and 17 as indicated
in Part ill.

(5) Part V.—

Enter on line 11, Form 6251, the amount from
line 6, Part IV of this Form 1116 (but not more
than the amount on Form 6251, line 10).

For more information, see Publication 909,
Minimum Tax and Alternative Minimum Tax.