6251 Alternative Minimum Tax Computation
Form t 7

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

Internal Revenue Service

OMB No, 1545-0227

1981

Name(s) as shown on tax return Identifying number

EGE Computation of Alternative Minimum Tax

1 Adjusted gross income from Form 1040, line 32a or Form 1040NR, line 33 (see instructions) . 1 —
2 Deductions (applies to individuals only): 7/
a Enter amount from Form 1040, line 32b or Form 1040NR, line 36. . |_2a —
2 or 5, enter $3,400
b On your 1981 Form 1040, if you checked Filing Status box. 1 1 or 4, enter $2,300 7
3, enter $1,700. } 2b, —_|
¢ Multiply $1,000 by the total number of exemptions on Form 1040, line 6e |_2¢ UY
d Add lines 2a through 2c (estates and trusts, enter zero). . 2 2. ee eee ee ee | 2d] —
3 Subtractline 2d fromlinel. 2 2... ee ee ee 3 |_
4 Tax preference items: 7
a Adjusted itemized deductions . . . . ........ . [48 =
b Capital gaindeduction. 2. 2 2 2 ee ee ee ee Ab Uj
c Addlines4aand4b . . . . wo eee 4c —
5 Alternative minimum taxable income (add lines 3 and 4c). wee ee _ 5 —
6 Tax on amount on line 5 from Part IV, line Dor Part Ill, line27. . . 2 6 ew we ee 6
7 Amount from Form 1040, line 47 (see instructions). . . 2. . . . JZ | iY
8 Minimum tax from Form 1040, 1041, or990-T. . . . . . .. » {8 — _
9 Tax from recomputing prior-year investment credit . . . . 2. « 9 YY
10 Add lines 7 through 9. 2... ee ee ee ee ee {OL a
11 Subtract line 10 from line 6. If zero or less, do not complete the rest of this form. . . . « 21_| —
12 Foreign tax credit (see instructions). . . . . 0 —
13 Subtract line 12 from line 11. If line 12 is more than ti line 11,enterzero. . . . . se 13 _
14 Credits allowed against alternative minimum tax from Part Il, line21. . . . eee [4 |_
15 Alternative minimum tax (subtract line 14 from line 13.) If zero or less, enter zero. . Enter here and on
Form 1040, line 49b (estates and trusts—see instructions) . 15
HEGZTSIME Computation of Credits Allowed Against Alternative Minimum Tax
16 Enter amount from line 3 above. . . . ee ee ee ee 16 _| a
17 Enter 6624% of line 4b. 2. ee ee ee fT _
18 Subtract line 17 from line 16... . ee  *: __
19 Tax on amount on line 18 from Part IV, lineD. . 1. a 19 —
20 Credits, other than Foreign Tax Credit, from Form 1040, line 46. (See instructions.) . 20_| _
21 _Enter line 19 or line 20, whichever is smaller. Enter here and on line 14 above . 21
HEZTalMM See instructions for line 6 before completing this part.
22 Enter amount from line 5 above. . . . a rrr » (22) _
23 Enter amount from line 29 of Schedule D (Form 1040 or Form 1041) . res << —
24 Subtract line 23 from line 22... . . rr . (24 | je
25 Tax on amount on line 24 from Part lV, line Doo 25 _ _
26 Enter amount from line 34 of Schedule D (Form 1040 or Form 1041). . . . . we 26 _| —
27 Add line 25 and line 26. Enter on line 6 above, only if less than the tax on amount on line 5 from Part
WV, line D rere 72
Alternative Minimum Tax Computation Schedules
Single, Married Filing Jointly, Qualifying Widow(er), or Married Filing Separately, or Estate or Trust
Head of Household
Not over $20,000. . 2 2. eee ee ee OO Not over $10,000. . . . tee o-
Of the but not Of the but not
amount over over amount over over
A. 10% $ 20,000 $ 60,000=§. A. 10% $10,000 $30,000=$.
B. 20% $ 60,000 $100,000=$, B. 20% $30,000 $50,000=$.
C. 25% $100,000 — =$ C. 25% $50,000 — =$
D. Total (A+B+C) . . _. =$ D. Total (A+B+C) . - . . : =$

For Paperwork Reduction Act Notice, s see back of form. 343-213-2

Form 6251 «a981)


Instructions

(Section References are to the Internal Revenue Code)
Paperwork Reduction Act Notice

We ask for the information to carry out
the Internal Revenue laws of the United
States. We need it to ensure that you 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. An individual, estate or trust
may be liable if they have: (1) tax prefer-
ence items for adjusted itemized deduc-
tions or capital gain deduction; (2) an en-
try on Schedule D (Form 1040), line 9a and
credits on Form 1040, line 46; or (3) non-
business credits for investment credit, WIN
credit, or jobs credit.

If line 11 is more than zero, and 1 of the
above 3 conditions are met, attach Form
6251 whether or not you are actually li-
able for the alternative minimum tax.

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 the worksheet on page 12
of the Form 1040 instructions or had an
entry on Form 1040NR, line 37, enter the
amount from line 5 of the worksheet or
line 38 of Form 1040NR on line 1 of Form
6251 instead of the amount from Form
1040, line 32a or Form 1040NR, line 33. If
you entered your earned income on line 3
of the worksheet, 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.
Line 4a.—Adjusted
tions.
Individuals—Step 1.—Subtract the fol-
lowing from your total itemized deductions
(Schedule A (Form 1040), line 39):
(1) medical and dental expenses (Sched-
ule 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 allow-
able under section 691(c).

Step 2.—Subtract from your adjusted
gross income (Form 1040, line 32a), the
items in (1) through (4) of step 1. The re-
sult 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 exemp:

Itemized Deduc-

tion,
(3) the deduction for casualty and theft

losses,

(4) the deduction for State, local, and
foreign taxes,

(5) the deduction allowed for distribu-
tions to beneficiaries,

(6) the charitable deduction allowable
to a trust to the extent that a corre-
sponding amount is included in the

gross income of the beneficiary of
the trust, and

(7) any deduction for estate tax allow-

able 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 follow-
ing 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 ex-

tent 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 21;
(2) The amount from Form 4798, Part |,

line 9;
(3) 60% of capital gain distributions if
you gid not use Schedule D or Form
798.

Note: Do not include as a tax preference
item the capital gain deduction attributable
to a sale or exchange of a principal resi-
dence.

Estates and Trusts—
Enter the capital gain deduction taken
into account on Form 1041 or 990-T. How-
ever, an amount paid or permanently set
aside for a charitable purpose is not a tax
preference item.
Lines 5 and 6.—If this is a short period
return, use the formula in section 443
(d)(1) to determine the amount to enter
on these lines.
Line 6.—In figuring line 6, complete Part
Ill if line 5 is over $100,000 ($50,000 if
married filing separately or estate or trust)
and you have post 6/9/81 long-term capi-
tal gains. It may be necessary to complete
the Alternative Tax part even if your tax
bracket for the regular tax is under 50%.
Non-resident alien individuals.—lf you
disposed of U.S. real property interests at a
gain, see Form 1040NR instructions for
special rule in figuring line 6.
Line 7.—Do not include any tax from
Form 4970, Form 4972, Form 5544, or any
penalty tax under section 72(m)(5). Es-
tates and trusts, enter the amount from
Form 1041, line 30, or Form 990-T, page 1,
line 11.
Line 12,—Foreign Tax Credit.
If line 11 is more than zero, and you
incurred foreign taxes and elect to take
them as a credit, enter on line 12 the
foreign tax credit allowed against the al-
ternative 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 speci-
fied at the top of Form 1116.

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

(3) Part 1—Use your alternative mini-
mum taxable income from sources outside
the U.S. and items of gross income and de-
ductions used in determining alternative
minimum taxable income from sources out-
side the U.S. Part Il need not be com-
pleted.

(4) Part 1l—

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

‘Yr US, GOVERNMENT PRINTING OFFICE : 1981—O-343-213

(i) the amount from Part III, line
5 of the Form 1116 used to
figure the amount on line 42 of
Form 1040, line 27a of Form
1041, or line 9(a) of Form
990-T minus
(ii) the amount from Part Ill,
line 17 of that Form 1116, plus
(iii) the smaller of (A) the
amount from Part Ill, line 17 of
that Form 1116, or
(B) Form 6251, line 11 (or if
more than one Form 1116 is
being used, an allocable por-
tion of Form 6251, line 11).
Complete lines 6 through 8,
substituting alternative mini-
mum taxable income from
sources outside the U.S. for tax-
able income from sources out-
side the U.S. on line 6.
(d) Skip lines 9 and 10.
(e) Line 11—Enter the amount
from Form 6251, line 5.
(f) Complete line 12 as indicated in
Part Ill.
(g) Skip lines 13 and 14.
(h) Line 15—Enter the sum of
Form 6251, lines 7, 9 and 11.
(i) Complete lines 16 and 17 as
indicated in Part III.

(5) Part VW—

Enter on line 12, Form 6251, the
amount from line 7, Part IV of this
Form 1116 (but not more than the
amount on Form 6251, line 11).

For more information on how to figure
this credit, see Publication 909, Minimum
Tax and Maximum Tax.

Line 15.—If you are filing Form 1041,
enter the amount from this line on Form
1041, line 32. If you are filing Form 990-T,
enter the amount from this line on Form
990-T, page 1, line 14.

Line 17.—If you had an entry on Sched-
ule D (Form 1040), line 9a, include in line
17 the portion of Schedule D, line 9a in-
cluded in Form 1040, line 12.

Line 20.—Credits.—Enter your credits,
other than your foreign tax credit, as they
appear on your tax return; Form 1040, line
46, Form 1041, line 29, or Form 990-T,
line 10. Include WIN credit only to the ex-
tent it is from an active trade or business.
Refigure investment credit using another
Form 3468. Refigure jobs credit using an-
other Form 5884. Include in line 21 of such
Form 3468 and in line 15 of such Form
5884 only the credits from an active trade
or business. In addition, substitute the
amount in Form 6251, line 19 for line 22
of Form 3468 and line 16 of Form 5884. In
refiguring your credits, do not reduce Form
6251, line 19 by any tax from Form 4972,
5544, or section 72(m)(5). Print “ALT MIN
TAX’ across the top of each Form 3468
and Form 5884 you use to refigure these
credits. Attach them to this form.

It may be necessary to figure the carry-
back or carryover of unused credits. See
section 55(c)(4).

Partners, Beneficiaries, etc. If you are a—

(1) Partner, take into account separately
your distributive share of items of income
and deductions that enter into the compu-
tation of tax preference items.

(2) Beneficiary of an estate or trust, see

section 58(c).

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

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

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

343-213-2

c