Instructions For Form 6251 - 2008 (Page 3 of 12) in pdf

Step 2. Enter your AMT disallowed

Enter the difference between the

Line 5—Miscellaneous

investment interest expense from 2007

regular tax and AMT deduction. If the

Deductions

on line 2. Complete line 3.

AMT deduction is greater, enter the

If you are filing Form 1040NR, enter the

difference as a negative amount.

Step 3. When completing Part II,

amount from Schedule A (Form

refigure the following amounts, taking

Line 11—Net Operating Loss

1040NR), line 15.

into account all adjustments and

Deduction

Line 6

preferences.

•

If you are filing Form 1040NR, enter

Gross income from property held for

Enter the amount from line 11 of the

your net operating loss deduction from

investment.

Itemized Deductions Worksheet as a

•

Form 1040NR, line 21, as a positive

Net gain from the disposition of

negative amount.

amount.

property held for investment.

Form 1040NR. If you are filing Form

•

Net capital gain from the disposition

Line 12—Interest From

1040NR and line 36 is over $159,950

of property held for investment.

(over $79,975 if you checked filing

•

Private Activity Bonds

Investment expenses.

status box 3, 4, or 5), enter the amount

Enter on line 12 interest you earned on

Include any interest income and

from line 11 of the Itemized Deductions

“specified private activity bonds”

investment expenses from private

Worksheet in the instructions for Form

reduced (but not below zero) by any

activity bonds issued after August 7,

1040NR as a negative amount on line

deduction that would have been

1986.

allowable if the interest were includible

On line 4g, enter the smaller of:

Line 7

in gross income for the regular tax.

1. The amount from line 4g of your

Each payer of this type of interest

If you are claiming the standard

regular tax Form 4952, or

should send you a Form 1099-INT

deduction and it includes a net disaster

2. The total of lines 4b and 4e of

showing the amount of this interest in

loss attributable to a federally declared

this AMT Form 4952.

box 9. Generally, the term “specified

disaster, enter the amount from Form

private activity bond” means any private

4684, line 18a, as a negative amount. If

Step 4. Complete Part III.

activity bond (as defined in section 141)

you are filing Schedule A (Form 1040),

issued after August 7, 1986. See

Enter on Form 6251, line 9, the

do not enter an amount on line 7; the

section 57(a)(5) for exceptions and

difference between line 8 of your AMT

amount of your disaster loss deduction,

more details.

Form 4952 and line 8 of your regular

if any, is already included in the amount

tax Form 4952. If your AMT expense is

Do not include interest on qualified

you entered on line 1.

greater, enter the difference as a

Gulf Opportunity Zone bonds described

Line 8—Refund of Taxes

negative amount.

in section 1400N(a) or qualified

Midwestern disaster area bonds.

Include any refund from Form 1040,

Investment interest expense that is

line 10 (or Form 1040NR, line 11), that

not an itemized deduction. If you did

Exempt-interest dividends paid by a

is attributable to state or local income

not itemize deductions and you had

regulated investment company are

taxes. Also include any refunds

investment interest expense, do not

treated as interest income on specified

received in 2008 and included in

enter an amount on Form 6251, line 9,

private activity bonds to the extent the

income on Form 1040, line 21, that are

unless you reported investment interest

dividends are attributable to interest on

attributable to state or local personal

expense on Schedule E. If you did,

the bonds received by the company,

property taxes or general sales taxes,

follow the steps above for completing

minus an allocable share of the

foreign income taxes, or state, local, or

Form 4952. Allocate the investment

expenses paid or incurred by the

foreign real property taxes. Enter the

interest expense allowed on line 8 of

company in earning the interest. This

total as a negative amount. If you

the AMT Form 4952 in the same way

amount should also be reported to you

include an amount from Form 1040, line

you did for the regular tax. Enter on

on Form 1099-INT in box 9.

21, you must enter a description and

Form 6251, line 9, the difference

If you are filing Form 8814, Parents’

the amount next to the entry space for

between the amount allowed on

Election To Report Child’s Interest and

line 8. For example, if you include a

Schedule E for the regular tax and the

Dividends, any tax-exempt interest

refund of real property taxes, enter “real

amount allowed on Schedule E for the

income from line 1b of that form that is

property” and the amount next to the

AMT.

a preference item must be included on

entry space.

this line.

Line 10—Depletion

Line 9—Investment Interest

Line 13—Qualified Small

You must refigure your depletion

If you filled out Form 4952, Investment

deduction for the AMT. To do so, use

Business Stock

Interest Expense Deduction, for your

only income and deductions allowed for

If you claimed the exclusion under

regular tax, you will need to fill out a

the AMT when refiguring the limit based

section 1202 for gain on qualified small

second Form 4952 for the AMT as

on taxable income from the property

business stock held more than 5 years,

follows.

under section 613(a) and the limit

multiply the excluded gain (as shown

Step 1. Follow the Form 4952

based on taxable income, with certain

on Schedule D (Form 1040)) by 7%

instructions for line 1, but also include

adjustments, under section 613A(d)(1).

(.07). Enter the result on line 13 as a

the following amounts when completing

Also, your depletion deduction for

positive amount.

line 1.

mines, wells, and other natural deposits

•

Any interest expense on Form 6251,

under section 611 is limited to the

Line 14—Exercise of

line 4, that was paid or accrued on

property’s adjusted basis at the end of

Incentive Stock Options

indebtedness attributable to property

the year, as refigured for the AMT,

For the regular tax, no income is

held for investment within the meaning

unless you are an independent

recognized when an incentive stock

of section 163(d)(5) (for example,

producer or royalty owner claiming

option (ISO), as defined in section

interest on a home equity loan whose

percentage depletion for oil and gas

422(b), is exercised. However, this rule

proceeds were invested in stocks or

wells under section 613A(c). Figure this

does not apply for the AMT. Instead,

bonds).

limit separately for each property. When

•

you generally must include on line 14

Any interest that would have been

refiguring the property’s adjusted basis,

the excess, if any, of:

deductible if interest earned on private

take into account any AMT adjustments

activity bonds issued after August 7,

you made this year or in previous years

1. The fair market value of the stock

1986, had been includible in gross

that affect basis (other than current

acquired through exercise of the option

income.

year depletion).

(determined without regard to any lapse

-3-

Instructions For Form 6251 - 2008 Page 3

Related Articles

Related forms

Related Categories