coum 6251 Alternative Minimum Tax Computation

> See instructions on back
Department of the Treasury b> Attach to Forms 1040, 1040NR, 1041 or 990-T (Trust).

Internal_ Revenue Service
Name(s) as shown on tax return Identifying number

1 Adjusted gross income from Form 1040, line 32 or Form 1040NR, line 33 (estates and trusts—see
instructions) 2. 6 ee ee
2 Deductions (applies to individuals only):

a Enter amount from Form 1040, line 33 or Form 1040NR, line 37. . 2a

b On your 1980 Form 1040, if you checked Filing Status box . 1 or 4, enter $2,300

3, enter $1,700 ,

2 or 5, enter $3,400
2b

© Multiply $1,000 by the total number of exemptions on Form 1040, line 7 |_2¢

d Add lines 2a through 2c (estates and trusts, enter zero). . 2... ee
3 Subtract line 2d fromlinel. 2 6 6 ee ee
4 Tax preference items:

a Adjusted itemized deductions . . . . . - 2... we es | 48]

b Capital gain deduction . . 2. 2 1 ee ee ew ee ee | 4B

© Addlines4aand 4b. 6 6 we ee
5 Alternative minimum taxable income (addlines3and4c)... 2 2 1. 1 ee ee ee
6 Enter $20,000 ($10,000 if married filing separately, or anestateortrust). . . . . 2. 0 un
7 Subtract line 6 from line 5. If zero or less, do not complete the rest of thisform. . . . 2...
8 Enter the smaller of line 7 or $40,000 ($20,000 if married filing separately,

oranestateortrust). ©. 2. eee ee ee ee ee LLB :
9 Subtract line 8fromline7. 2. 2. 1 see 19
10 Enter the smaller of line 9 or $40,000 ($20, 000 if married filing separately,

oranestate ortrust). 2 6 1. ee ee ee ee ee ee | 0
11 Subtract line10fromline9. . 2. 2. ee eee La
12 Enter 10% of line8. 2 2 2 ee ee ee eee ee PL
13 Enter20% oflinelO. . 2 2. ee ee ee ee LL
14 Enter 25% oflinell. 2 2 2 2. ee ee eee ee ee 4
15 Add lines 12,13 and14. . . . Se
16 Amount from Form 1040, line 47* (estates and trusts—see instructions). |_16 |
17 Minimum tax from Form 1040, line 49a (estates and trusts—see instruc-

tions). 6 ee ee ee ee |Z
18 Tax from recomputing prior-year investment credit (from Form 1040, line

50) (estates and trusts—see instructions). . . . . . .. . . {38
19 Add lines 16 through 18... . an Fo
20 Alternative minimum tax (subtract line 19 from line 15). If zero or less, do not complete the rest of

this form; otherwise file this form with your tax return. 2... 1 2. we ee ee
21 Foreign tax credit (see instructions). . . . . . So ee

22 Subtract line 21 from line 20. Enter here and on Form 1040, ‘line 49b (estates and trusts—see in-
structions)... . : : : we ee

wo

[a

N

PRS

21

22

*Do not include any tax from Form 4970, Form 4972, Form 5544, or any penalty tax under section 72(m)(5).

Form 6251

(1980)


instructions

(Section References are to the Internal RevenueCode)

Purpose of Form

Use this form to see whether you are
liable for the alternative minimum tax. If
line 20 shows an amount that is more than
zero, attach a copy with your income tax
return even if line 22 is zero,

An individual may be liable for the
alternative minimum tax if the total of
Form 1040, line 34 and tax preference
items for excluded capital gains and
adjusted itemized deductions is more than
$23,300 ($12,700 if married filing
separately),

An estate or trust may be liable if the
total of taxable income and tax preference
items for excluded capital gains and
adjusted itemized deductions is more
than $10,000.

Line-by-Line Instructions
Line 1

Do not include in line 1 any alcohol fuel
credit included in income. .

Note: Line 1 and line 3 can be less than
zero. However, when you figure lines 1
and 2, you cannot include a deduction for
any loss or expense allowable in figuring
a net operating loss that can be carried
back or forward.

If you used Schedule TC, Part Il or had
an entry on Form 1040NR, line 38, enter
the amount from line 5 of Schedule TC or
line 39 of Form 1040NR on line 1 of Form
6251 instead of the amount from Form
1040, line 32 or Form 1040NR, line 33.
if you entered your earned income on
Schedule TC, Part Il, line 3, contact an
Internal Revenue Service office.

Estates and trusts.—Enter the taxable

income from Form 1041, line 25, or Form
990-T, page 1, line 5, or page 2, line 33.
Line 4a

Adjusted Itemized Deductions
Individuals—

Step 1.—Subtract the following from
your total itemized deductions (Schedule
A (Form 1040), line 39):

(1) medical and dental expenses

(Schedule A (Form 1040), line 10),

(2) State, local, and foreign taxes

(Schedule A (Form 1040), line 16),
(3) casualty and theft losses (Schedule
A (Form 1040), line 29), and
(4) any deduction for estate tax
allowable under section 691(c).

Step 2.—Subtract from your adjusted
gross income (Form 1040, line 32), the
items in (1) through (4) of step 1. The
result cannot be less than zero.

Step 3.—Multiply step 2 by 60%.

Step 4.—Subtract step 3 from step 1.
Enter the result on line 4a. If less than
zero, enter zero.

Estates and Trusts—

Step 1.—Add all deductions except:

(1) those allowable in figuring adjusted

gross income,

(2) the deduction for personal

exemption,

(3) the deduction for casualty and

theft losses,

(4) the deduction for State, local, and

foreign taxes,

(5) the deduction allowed for

distributions to beneficiaries,

(6) the charitable deduction allowable
to a trust to the extent that a
corresponding amount is included
in the gross income of the
beneficiary of the trust, and

(7) any deduction for estate tax
allowable under section 691(c).

Step 2.—Subtract from adjusted gross
income the items in (3) through (7) of
step 1. The result cannot be less than zero.

Step 3.—Multiply step 2 by 60%.

Step 4.—Subtract step 3 from step 1.
Enter the result on line 4a. If less than
zero, enter zero.

Note: Adjusted gross income for an
estate or trust is figured in the same way
as for an individual except that the
following items are allowed in figuring
adjusted gross income:

(1) the costs of administration of the

estate or trust; and

(2) the charitable deduction to the
extent provided in section 57(b)
(2)(C).

Line 4b

Capital Gain Deduction
Individuals—
Enter one of the following:
(1) The amount from Schedule D (Form
1040), line 20a;
(2) The amount from Form 4798, Part
1, line 8a, if you report a pre-1970
capital loss carryover;
(3) 60% of capital gain distributions
if you did not use Schedule D or
Form 4798.
__ Note: Do not include as a tax preference
item 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 5 and 15

Adjustment of Alternative Minimum
Taxable Income and Alternative Minimum
Tax.—If this is a short period return, use
the formula in section 443(d)(1) to
Getermine the amount to enter on these
ines.

Line 16

Estates and trusts—Enter the amount
from Form 1041, line 31, or Form 990-T,
page 1, line 11.

Line 17

Estates and trusts—Enter the amount
from Form 1041, line 33, or Form 990-T,
page 1, line 13.

Line 18

Estates and trusts—Enter the amount
from Form 1041, line 32, or Form 990-T,
page 1, line 12.

Line 21
Foreign Tax Credit

If line 20 is more than zero, and you
have incurred foreign taxes and elect to
take them as a credit, enter on line 21 the
amount of foreign tax credit allowed
against the alternative minimum tax. Use a
separate Form 1116 to figure this credit.
Do not use the Form 1116 you used to
figure the credit on Form 1040, line 42.
Figure this credit as follows:

(1) Use and attach a separate Form

1116 for each type of income
specified at the top of Form 1116.

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

(3) Part |—Use your alternative
minimum taxable income from sources
outside the U.S. and items of gross
income and deductions used in deter-
mining alternative minimum taxable
income from sources outside the U.S,
Part li need not be completed.

(4) Part N—

(a) Skip lines 1 to 4.
(b) Insert on line 5 the result of
the following:
(i) the amount from Part III,
line 5 of the Form 1116 used
to figure the amount on line 42
of Form 1040, minus
(ii) the amount from Part Ill,
line 17 of that Form 1116, plus
(iii) the smaller of (A) the
amount from Part Il, line
17 of that Form 1116, or
(B) Form 6251, line 20 (or if
more than one Form 1116 is
being used for different types
of income, an allocable portion
of Form 6251, line 20).
Complete lines 6 through 8,
substituting alternative
minimum taxable income from
‘sources outside the U.S. for
taxable income from sources
outside the U.S. on line 6.
(d) Skip lines 9 and 10.
(e) Line 11—€nter the amount
from Form 6251, line 5.
(f) Complete line 12 as indicated
in Part Il.
(g) Skip lines 13 and 14.
(h) Line 15—Enter the sum of
gorm 6251, lines 16, 18 and
20.
(i) Complete lines 16 and 17 as
indicated in Part Ill.
(5) Part V—
Enter on line 21, Form 6251, the.
amount from line 7, Part IV of this
Form 1116 (but not more than
the amount on Form 6251, line
20).
For more information on how to figure
this credit, see Publication 525, Taxable
and Nontaxable Income.

Line 22

Estates and Trusts—

If you are filing Form 1041, enter the
amount from this line on Form 1041,
line 34. If you are filing Form 990-T, enter
the amount from this line on Form 990-T,
page 1, line 14,

Partners, Beneficiaries of
Estates and Trusts, etc.

If you are a partner—

You must take into account separately
your distributive share of items of income
and deductions that enter into the
computation of tax preference items. If
you are a partner and have elected the.
optional adjustment to basis (see section
743), adjust the tax preference items that
apply to reflect the election.

If you are a—

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

(2) Shareholder of an electing small
business corporation, see section
58(d). d

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

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

(c: