Instructions For Form 6251 - 2008 (Page 10 of 12) in pdf

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Form 1116 for the regular tax and you

Do not adjust the amount of any

Have foreign source capital gains

previously made or are making the

foreign source qualified

and losses in no more than two

simplified limitation election, complete

dividends you elected to include

separate categories, and

CAUTION

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Part I and lines 14 through 16 of the

on line 4g of AMT Form 4952.

Did not have any item of

AMT Form 1116 using regular tax

unrecaptured section 1250 gain or 28%

Individuals with capital gain

amounts.

rate gain or loss for the AMT.

distributions only. If you have no

Instructions for Worksheets A and

If the election does not apply,

capital gains or losses other than

B. When you complete Worksheet A

complete Part I using only income and

capital gain distributions from box 2a of

or Worksheet B, use foreign source

deductions that are allowed for the

Form(s) 1099-DIV or substitute

capital gains and losses, as refigured

AMT and attributable to sources outside

statement(s), you must adjust your

for the AMT if necessary, and do not

the United States. If you have any

foreign source capital gain distributions

use any foreign source capital gains

foreign source qualified dividends or

if you are required to adjust your

you elected to include on line 4g of

foreign source capital gains (including

foreign source qualified dividends under

AMT Form 4952. If you are required to

any foreign source capital gain

the rules just described or you would be

complete a Schedule D for the AMT,

distributions) or losses, use the

required to adjust your foreign source

use line 16 of that AMT Schedule D to

instructions under Step 3 to determine

qualified dividends if you had any.

complete line 3 of Worksheet A or line

whether you must make adjustments to

4 of the Line 2 Worksheet for

To adjust your foreign source capital

those amounts before you include the

Worksheet B. Use 0.5357 instead of

gain distributions, multiply your foreign

amounts on line 1a or line 5 of the AMT

0.4286 to complete lines 11, 13, and 15

source capital gain distributions in each

Form 1116.

of Worksheet B and to complete lines

separate category by 0.5357 if the

Step 3. Follow the instructions below,

8, 11, and 17 of the Line 15 Worksheet

foreign source capital gain distributions

if applicable, to determine the amount

for Worksheet B.

are taxed at a rate of 15%. Include the

of foreign source qualified dividends,

results on line 1a of the applicable AMT

If you do not qualify to use

capital gain distributions, and other

Form 1116.

Worksheet A or Worksheet B, use the

capital gains and losses to include on

instructions for Capital Gains and

line 1a and line 5 of the AMT Form

You adjust your foreign source

Losses in Pub. 514 to determine the

1116.

capital gain distributions taxed at the

adjustments you make.

0% rate by not including them on line

Foreign qualified dividends. You

Step 4. Complete Part II and lines 9

1a. Amounts taxed at the 0% rate are

must adjust your foreign source

through 13 of the AMT Form 1116. Use

on line 10 of the Qualified Dividends

qualified dividends before you include

your AMTFTC carryover, if any, on

and Capital Gain Tax Worksheet in the

those amounts on line 1a of the AMT

line 10.

Form 1040 instructions, line 8 of the

Form 1116 if:

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Step 5. If the simplified limitation

Qualified Dividends and Capital Gain

Line 53 of Form 6251 is smaller than

election does not apply, complete lines

Tax Worksheet in the Form 1040NR

line 54, and

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14 through 16 of the AMT Form 1116.

instructions, or line 19 of the Schedule

Line 42 of Form 6251 is greater than

D Tax Worksheet.

Step 6. If you did not complete Part III

zero.

of Form 6251, enter the amount from

But you do not need to make any

Do not adjust the amount of any

line 29 of Form 6251 on line 17 of the

adjustments if:

foreign source capital gain

AMT Form 1116 and go to Step 7. If

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You qualify for the adjustment

distributions you elected to

CAUTION

you completed Part III of Form 6251,

exception under Qualified Dividends

include on line 4g of AMT Form 4952.

you must complete, for the AMT, the

and Capital Gain Tax Worksheet

Worksheet for Line 17 in the Form 1116

Individuals with other capital

(Individuals) or Adjustments to foreign

instructions to determine the amount to

gains or losses. If any capital gain or

qualified dividends under Schedule D

enter on line 17 of the AMT Form 1116

loss is different for the AMT, use

Filers in the Form 1116 instructions,

if:

amounts as refigured for the AMT to

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and

Line 53 of Form 6251 is smaller than

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complete this step. Use Worksheet A in

Line 42 of Form 6251 is not more

line 54, and

the instructions for Form 1116 to

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than $175,000 ($87,500 if married filing

Line 42 of Form 6251 is greater than

determine the adjustments you must

separately).

zero.

make to your foreign source capital

Note. Use your capital gains and

But you do not need to complete the

gains or losses (as refigured for the

losses as refigured for the AMT to

Worksheet for Line 17 if:

AMT) if you have foreign source capital

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determine whether your total amounts

You qualify for the adjustment

gains or losses (as refigured for the

are less than the $20,000 threshold

exception under Qualified Dividends

AMT) in no more than two separate

under the adjustment exception.

and Capital Gain Tax Worksheet

categories and any of the following

(Individuals) or Adjustments to foreign

apply.

To adjust your foreign source

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qualified dividends under Schedule D

You are not required to make

qualified dividends, multiply your

Filers in the Form 1116 instructions,

adjustments to your foreign source

foreign source qualified dividends in

and

qualified dividends under the rules

each separate category by 0.5357 if the

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Line 42 of Form 6251 is not more

described earlier (or you would not be

foreign source qualified dividends are

than $175,000 ($87,500 if married filing

required to make those adjustments if

taxed at a rate of 15%. Include the

separately).

you had foreign source qualified

results on line 1a of the applicable AMT

dividends).

Note. Use your capital gains and

Form 1116.

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Line 15 or 16 of the AMT Schedule D

losses as refigured for the AMT to

You adjust your foreign source

(Form 1040) is zero or a loss.

determine whether your total amounts

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qualified dividends taxed at the 0% rate

The amount on line 3 of the AMT

are less than the $20,000 threshold

by not including them on line 1a.

Qualified Dividends and Capital Gain

under the adjustment exception.

Amounts taxed at the 0% rate are on

Tax Worksheet (or line 7 of the AMT

If you do not need to complete the

line 10 of the Qualified Dividends and

Schedule D Tax Worksheet) minus the

Worksheet for Line 17, enter the

Capital Gain Tax Worksheet in the

amount on Form 4952, line 4e, that you

amount from line 29 of Form 6251 on

Form 1040 instructions, line 8 of the

elected to include on Form 4952, line

line 17 of the AMT Form 1116.

Qualified Dividends and Capital Gain

4g, is zero or less.

Tax Worksheet in the Form 1040NR

Instructions for AMT Worksheet

instructions, or line 19 of the Schedule

Use Worksheet B if you:

for Line 17. Follow these steps to

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D Tax Worksheet.

Cannot use Worksheet A,

complete, for the AMT, the Worksheet

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Instructions For Form 6251 - 2008 Page 10

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