Instructions For Form 6251 - Alternative Minimum Tax-Individuals

commercial fishermen), adjust line 1 by

activity bonds issued after August 7,

Line 11—Interest From

the write-in amount.

1986, had been includible in gross

Private Activity Bonds

income.

Line 3—Taxes

Enter on line 11 interest you earned on

Step 2. Enter your AMT disallowed

“specified private activity bonds”

Do not include generation-skipping

investment interest expense from 2002

reduced (but not below zero) by any

transfer taxes on income distributions.

on line 2. Complete line 3.

deduction that would have been

Line 4—Certain Home

Step 3. When completing Part II,

allowable if the interest were includible

refigure the following amounts, taking

in gross income for the regular tax.

Mortgage Interest

into account all adjustments and

Generally, the term “specified private

Include on this line home mortgage

preferences.

activity bond” means any private activity

interest from line 10, 11, or 12 of

•

bond (as defined in section 141) issued

Gross income from property held for

Schedule A (Form 1040) except for

investment.

after August 7, 1986. See section

interest on a mortgage whose proceeds

•

57(a)(5) for exceptions and more

Net gain from the disposition of

were used to:

details.

property held for investment.

1. Buy, build, or substantially

•

Net capital gain from the disposition

Exempt-interest dividends paid by a

improve (a) your main home or (b) your

of property held for investment.

regulated investment company are

second home that is a qualified

•

Investment expenses.

treated as interest income on specified

dwelling (as defined below) or

Include any interest income and

private activity bonds to the extent the

2. Refinance a mortgage that meets

investment expenses from private

dividends are attributable to interest on

the requirements of 1 above, but only to

activity bonds issued after August 7,

the bonds received by the company,

the extent that the refinanced amount

1986.

minus an allocable share of the

did not exceed the balance of that

expenses paid or incurred by the

mortgage immediately before the

Step 4. Complete Part III.

company in earning the interest.

refinancing.

Enter on line 8 the difference

If you are filing Form 8814, Parents’

Exception. If the mortgage was taken

between line 8 of your AMT Form 4952

Election To Report Child’s Interest and

out before July 1, 1982, do not include

and line 8 of your regular tax Form

Dividends, any tax-exempt interest

interest on the mortgage if it was

4952. If your AMT expense is greater,

income from line 1b of that form that is

secured by property that was your main

enter the difference as a negative

a preference item must be included on

home or a qualified dwelling used by

amount.

this line.

you or a member of your family at the

Note: If you did not itemize deductions

time the mortgage was taken out. See

Line 12—Qualified Small

and you had investment interest

section 56(e)(3).

Business Stock

expense, do not enter an amount on

A qualified dwelling is any house,

If you claimed the exclusion under

Form 6251, line 8, unless you reported

apartment, condominium, or mobile

section 1202 for gain on qualified small

investment interest expense on

home not used on a transient basis.

business stock held more than 5 years,

Schedule E. If you did, follow the steps

compute the amount to enter on line 12

Line 7—Refund of Taxes

above for completing Form 4952.

as follows.

Allocate the investment interest

Include any refund from Form 1040,

•

If you sold qualified small business

expense allowed on line 8 of the AMT

line 10, that is attributable to state or

stock before May 6, 2003, multiply the

Form 4952 in the same way you did for

local income taxes deducted after 1986.

excluded gain (as shown on Schedule

the regular tax. Enter on Form 6251,

Also include any refunds received in

D (Form 1040)) by 42% (.42).

line 8, the difference between the

2003 and included in income on Form

•

If you sold qualified small business

amount allowed on Schedule E for the

1040, line 21, that are attributable to

stock after May 5, 2003, multiply the

regular tax and the amount allowed on

state or local personal property taxes,

excluded gain (as shown on Schedule

Schedule E for the AMT.

foreign income taxes, or state, local, or

D (Form 1040)) by 7% (.07).

foreign real property taxes deducted

Line 9—Depletion

Combine the results and enter on line

after 1986. If you include an amount

12 as a positive amount.

You must refigure your depletion

from line 21, you must write a

deduction for the AMT. To do so, use

description and the amount next to the

Line 13—Exercise of

only income and deductions allowed for

entry space for line 7. For example, if

Incentive Stock Options

the AMT when refiguring the limit based

you include a refund of real property

on taxable income from the property

For the regular tax, no income is

taxes, write “real property” and the

under section 613(a) and the limit

recognized when an incentive stock

amount next to the entry space.

based on taxable income, with certain

option (ISO), as defined in section

Line 8—Investment Interest

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

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

Also, your depletion deduction for

does not apply for the AMT. Instead,

If you filled out Form 4952, Investment

mines, wells, and other natural deposits

you generally must include on line 13

Interest Expense Deduction, for your

under section 611 is limited to the

the excess, if any, of:

regular tax, you will need to fill out a

•

property’s adjusted basis at the end of

The fair market value of the stock

second Form 4952 for the AMT as

the year, as refigured for the AMT,

acquired through exercise of the option

follows.

unless you are an independent

(determined without regard to any lapse

Step 1. Follow the Form 4952

producer or royalty owner claiming

restriction) when your rights in the

instructions for line 1, but also include

percentage depletion for oil and gas

acquired stock first become

the following amounts when completing

wells under section 613A(c). Figure this

transferable or when these rights are

line 1.

limit separately for each property. When

•

no longer subject to a substantial risk of

Any interest expense on line 4 of

refiguring the property’s adjusted basis,

forfeiture over

Form 6251 that was paid or accrued on

•

take into account any AMT adjustments

The amount you paid for the stock,

indebtedness attributable to property

you made this year or in previous years

including any amount you paid for the

held for investment within the meaning

that affect basis (other than current

ISO used to acquire the stock.

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

year depletion).

interest on a home equity loan whose

Note: Even if your rights in the stock

proceeds were invested in stocks or

Enter the difference between the

are not transferable and are subject to

bonds).

regular tax and AMT deduction. If the

a substantial risk of forfeiture, you may

•

Any interest that would have been

AMT deduction is greater, enter the

elect to include in AMT income the

deductible if interest earned on private

difference as a negative amount.

excess of the stock’s fair market value

-2-

Instructions For Form 6251 - Alternative Minimum Tax-Individuals - 2003 Page 2

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