Instructions For Form 6251 - 2008 (Page 2 of 12) in pdf

taken into account in figuring the

amount to enter for any other

Home Mortgage Interest Adjustment

Keep for Your

adjustment or preference.

Worksheet—Line 4

Records

Line 1

If Form 1040, line 43, includes a

write-in amount (such as a capital

1. Enter the total of the home mortgage interest you deducted on lines

construction fund deduction for

10 through 12 of Schedule A (Form 1040) and any qualified mortgage

insurance premiums you deducted on line 13 of Schedule A (Form

commercial fishermen), adjust line 1 by

the write-in amount.

1040) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.

2. Enter the part, if any, of the interest included on line

Form 1040NR. If you are filing Form

1 above that was paid on an eligible mortgage

1040NR, enter the amount from Form

(defined on this page). Include any qualified

1040NR, line 38. If less than zero, enter

mortgage insurance premiums included on line 1

as a negative amount.

above that were paid in connection with an eligible

mortgage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.

Line 3—Taxes

3. Enter the part, if any, of the interest included on line

Enter the amount of all taxes from

1 above that was paid on a mortgage whose

Schedule A (Form 1040), line 9, except

proceeds were used in a refinancing (including a

generation-skipping transfer taxes on

second or later refinancing) of an eligible mortgage.

income distributions. Be sure to include

Include any qualified mortgage insurance premiums

any state and local general sales taxes

included on line 1 above that were paid in

included on Schedule A, line 9.

connection with such a mortgage. Do not include

Form 1040NR. If you are filing Form

any interest paid on (or any qualified mortgage

1040NR, enter the amount of all taxes

insurance premiums paid in connection with) the

from Schedule A (Form 1040NR), line

part of the balance of the new mortgage that

3, except generation-skipping transfer

exceeded the balance of the original eligible

taxes on income distributions.

mortgage immediately before it was refinanced (or, if

smaller, the balance of any prior refinanced

Line 4—Home Mortgage

mortgage immediately before that mortgage was

Interest Adjustment

refinanced) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.

4. Enter the part, if any, of the interest included on line

Complete the worksheet on this page to

1 above that was paid on a mortgage:

figure your home mortgage interest

•

Taken out before July 1, 1982, and

adjustment. The definitions of certain

•

Secured, at the time the mortgage was taken out,

terms used in the worksheet are as

by your main home or a qualified dwelling used by

follows.

you or your family (see definitions on this page).

Eligible mortgage. An eligible

Do not include any amount entered on line 2 or line

mortgage is a mortgage whose

3 above . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.

proceeds were used to buy, build, or

5. Add lines 2 through 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.

substantially improve your main home

6. Subtract line 5 from line 1 and enter the result on Form 6251, line 4 . . 6.

or a second home that is a qualified

dwelling. A mortgage whose proceeds

were used to refinance another

For information on making the

mortgage is not an eligible mortgage.

Credit for Prior Year

election, see section 59(e) and

Qualified dwelling. A qualified

Regulations section 1.59-1. Also see

Minimum Tax

dwelling is any house, apartment,

Pub. 535.

condominium, or mobile home not used

See Form 8801, Credit for Prior Year

on a transient basis.

Minimum Tax — Individuals, Estates,

and Trusts, if you paid AMT for 2007 or

Family. Family includes only your

Specific Instructions

you had a minimum tax credit

brothers and sisters (whether by whole

carryforward on your 2007 Form 8801.

or half blood), your spouse, your

If you pay AMT for 2008, you may be

If you owe AMT, you may be

ancestors, and your lineal descendants.

TIP

able to lower your total tax

able to take a credit on Form 8801 for

Example. In 2008, Dave and

2009.

(regular tax plus AMT) by

Jennifer paid $10,000 in interest on a

claiming itemized deductions on Form

mortgage they took out to buy their

1040, even if your total itemized

Optional Write-Off for

home (an eligible mortgage). In May

deductions are less than the standard

2008, they refinanced that mortgage

deduction. This is because the standard

Certain Expenditures

and paid $9,000 in interest through the

deduction (except the part due to a net

rest of the year. The balance of the new

There is no AMT adjustment for the

disaster loss) is not allowed for the

mortgage is the same as the balance of

following items if you elect for the

AMT and, if you claim the standard

the old mortgage. In July 2008, they

regular tax to deduct them ratably over

deduction on Form 1040, you cannot

obtained a home equity loan on their

the period of time shown.

claim itemized deductions for the AMT.

•

home and used the proceeds to buy a

Circulation expenditures — 3 years

new car. They paid $5,000 in interest

(section 173).

Part I—Alternative

on the home equity loan in 2008. They

•

Research and experimental

enter the following amounts on the

Minimum Taxable

expenditures — 10 years (section

Home Mortgage Interest Adjustment

174(a)).

Income (AMTI)

Worksheet: $24,000 on line 1 ($10,000

•

Mining exploration and development

plus $9,000 plus $5,000), $10,000 on

costs — 10 years (sections 616(a) and

To avoid duplication, any

line 2, $9,000 on line 3, $ -0- on line 4,

617(a)).

adjustment or preference for line

$19,000 on line 5 ($10,000 plus

•

Intangible drilling costs — 60 months

5, 19, or 20 or for a tax shelter

$9,000), and $5,000 on line 6 ($24,000

CAUTION

(section 263(c)).

farm activity on line 27 must not be

minus $19,000).

-2-

Instructions For Form 6251 - 2008 Page 2

Related Articles

Related forms

Related Categories