Form 6251 Alternative Minimum Tax Computation

Peer sence” > Attach to Forms 1040, 1041 or 990-T (Trust).

1979

Name(s) as shown on tax return Identifying number

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

a Enter amount from Form 1040, line33.. .. . . ~~... [28
2 or 5, enter $3,400

b On your 1979 Form 1040, if you checked Filing Status box. | 1 or 4, enter $2,300
3, enter $1,700. 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)... 6 ee ee
3 Subtract line 2dfromlinel. 2. ee ke
4 Tax preference items:
a Adjusted itemized deductions . 2. 1. ee ee ee ee | 48
b Capital gain deduction © 1 1. we ee ee ee ee | A
¢ Add lines 4aand 4b. 6. ee ee

a

Alternative minimum taxable income (add lines 3 and 4c) .

an

Enter $20,000 ($10,000 if married filing separately, or an estate or trust) .

7 Subtract line 6 from line 5. If zero or less, do not complete the rest of this form .
8 Enter the smaller of line 7 or $40,000 ($20,000 if married filing separately

or anestate ortrust). 2 6 6 ee ee ee 8
9 Subtract line 8 from line7. 2 . Fone eee 9
10 Enter the smaller of line 9 or $40,000 ($20, 000 if married filing separately
oranestate or trust). 2. 6 6 ee ee ee ee we [DO
11 Subtract line 10 fromlineQ. 2 2 6. ee ee ee
12 Enter 10% of line8. . 2. eee ee ee ee ee |
13 Enter 20% of linelO. 2 6 ee ee ee |
14 Enter 25% oflinell. 2 6. ee ee ee 14

15 Add lines 12, 13 and 14.

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). 2 2. ew 17.
18 Tax from recomputing prior-year investment credit (from Form 1040, line
50) (estates and trusts—see instructions). . . . . . 1 1 . + {38
19 Tax from recomputing prior-year work incentive (WIN) credit. . . . . L19
20 Add lines 16 through 19. 2. ew ee es . cee
21 Alternative minimum tax (subtract line 20 from line 15). If zero or less, do not complete the rest of
thisform.
22 Foreign tax credit (see instructions). . . soe ee :
23 Subtract line 22 from line 21. Enter here and on ‘Form ‘i040, ‘line 49 (estates and trusts—see in-
structions)». ee

wo

4c

ju

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Z

15

X

So

23

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

283-474-1

Form 6251 1979)


Instructions

(Section References are to the Internal RevenueCode)

Purpose of Form

If you are an individual, you may be
liable for the alternative minimum tax if
the sum of Form 1049, line 34, plus your
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
sum of taxable income plus tax preference
items for excluded capital gains and
adjusted itemized deductions is more
than $10,000.

Complete Form 6251 to see if you are
liable for the alternative minimum tax, but
you need not attach a copy of the form
if you are not liable.

Line i

Individuals—enter your adjusted gross
income from Form 1040, line 32.

Estates and trusts—enter the taxable
income from Form 1041, line 26, or Form
990-T, page 1, line 5, or page 2, line 33.

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 Ii, enter
the amount from line 5 of that Part on
line 1 of Form 6251 instead of the amount
from Form 1040, line 32. If you entered
your earned income on Schedule TC, Part
il, line 3, contact an Internal Revenue
Service office.

Line 4a
Adjusted Itemized Deductions

if you are an individual—.

Step 1.—Subtract 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.
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.

if an estate or trust—

Step 1.—Add all deductions other than:

(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
toa trust to the extent that a
corresponding amount is included
in the gross income of the
beneficiary of the trust, and

U.S. GOVERNMENT PRINTING OFFICE:

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

Step 2.—Subtract from adjusted gross
income the items in (2) through (7) of
step 1.

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

If you are an individual—
Enter:

(1) The amount from Schedule D (Form
1040), line 22a or 31;

(2) The amount from Form 4798, Part
1, line 10a, 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 capita! gain deduction attributable
to a sale or exchange of a personal
residence.

If an estate or trust—

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.

Line 16

Estates and trusts—enter the amount
from Form 1041, line 32, or Form 990-T,
page 1, line 25.

Line 17

Estates and trusts—enter the amount
from Form 1041, line 34, or Form 990-T,
page 1, line 28.

Line 18

Estates and trusts—enter the amount
from Form 1041, line 33, or Form 990-T,
page 1, line 26.

Line 22
Foreign Tax Credit

if line 21 is greater than zero, and you
have incurred foreign taxes and properly
elect to take such foreign taxes as a credit,
enter on line 22 the amount of foreign tax
credit allowed against the alternative
minimum tax, Figure this credit on a
separate Form 1116 (not the Form 1116
you used to compute the credit on Form
1040, line 42), as follows:

(1) Use 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.”

1979=283-474/5403

(3) Schedule A and Schedule C—Use
your alternative minimum taxable
income and items of gross income
and deductions used in determining
alternative minimum taxable
income.

(4) Schedule C—

(2) Skip lines 1 to 3.
(b) Insert on line 4 the result of

the following:

(i) the amount from Schedule

C, line 4 of the Form 1116 used

to figure the amount on line 42

of Form 1040, minus

(ii) the amount from Schedule

C, line 16 of that Form 1116,

plus

(iii) the lesser of (A) the

amount from Schedule C, line

16 of that Form 1116, or

(B) Form 6251, line 21 (or if

more than one Form 1116 is

being used for different types
of income, an allocable portion

of Form 6251, line 21).

Complete lines 5 through 7,

substituting alternative

minimum taxable income for

taxable income on line 5.

(d) Skip lines 8 and 9.

(e) Line 10—Enter amount from
Form 6251, line 5.

(f) Complete line 11 as indicated
on Schedule C.

(g) Line 12—Enter amount from
Form 6251, line 15.

(h) Skip lines 13 and 14.

(i) Line 15—Multiply line 12 by
line 11.

(5) Schedule D—Enter on line 22, Form
6251, the amount from line 7,
Schedule D of this Form 1116 (but
not more than the amount on Form
6251, line 21).

Line 23

If you are filing Form 1041, enter the
amount from this line on Form 1041,
line 35.

If you are filing Form 990-T, enter the
amount from this line on Form'990-T,
page 1, line 29.

Limitations on Amounts Treated as Tax
Preference Items in Certain Cases.—See
section 58(h) for limitations where the tax
preference item did not result in a tax
benefit. If limitations apply, attach a
schedule showing computation.

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.

«c

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).

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

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

283-474-1