Instructions For Form 4626 - 2010 (Page 7 of 11) in pdf

ACE adjustment of $112,500.

Gulf Opportunity Zone losses (as

tax. Keep adequate records for both the

Corporation C would complete the

defined in section 1400N(k)(2)),

AMT and the regular tax.

relevant portion of its 2010 Form 4626

qualified recovery assistance losses (as

Line 7. Alternative

as follows.

defined in Pub. 4492-A, Information for

Taxpayers Affected by the May 4, 2007

Minimum Taxable

Line

Amount

Kansas Storms and Tornadoes),

$250,000

qualified disaster recovery assistance

Income

150,000

losses (as defined in Pub. 4492-B,

For a corporation that held a residual

112,500

Information for Affected Taxpayers in

interest in a REMIC and is not a thrift

-0-

the Midwestern Disaster Area), or an

institution, line 7 may not be less than

112,500

applicable 2008 or 2009 NOL for which

the total of the amounts shown on

the corporation elected a 3, 4, or 5-year

Schedule(s) Q (Form 1066), Quarterly

carryback period (under section

Line 6. Alternative Tax

Notice to Residual Interest Holder of

172(b)(1)(H)), the ATNOLD for the tax

REMIC Taxable Income or Net Loss

year is limited to the sum of:

Net Operating Loss

Allocation, line 2c, for the periods

1. The smaller of:

included in the corporation’s tax year. If

Deduction (ATNOLD)

a. The sum of the ATNOL

the total of the line 2c amounts is larger

carrybacks and carryforwards to the tax

The ATNOLD is the sum of the

than the amount the corporation would

year attributable to net operating losses

alternative tax net operating loss

otherwise enter on line 7, enter that

other than qualified disaster losses,

(ATNOL) carrybacks and carryforwards

total and write “Sch. Q” on the dotted

qualified Gulf Opportunity Zone losses,

to the tax year, subject to the limitation

line next to line 7.

qualified recovery assistance losses,

explained below. For a corporation that

qualified disaster recovery assistance

Line 8. Exemption

held a residual interest in a real estate

losses, and applicable 2008 and 2009

mortgage investment conduit (REMIC),

Phase-Out Computation

NOLs for which the corporation made

figure the ATNOLD without regard to

the election under section 172(b)(1)(H);

any excess inclusion.

If alternative minimum taxable

NOLs arising in tax years

b. Ninety percent of AMTI for the tax

income entered on line 7 is

beginning before August 6,

year (figured without regard to the

$310,000 or more, skip lines 8a

CAUTION

1997, can be carried forward no

ATNOLD, as discussed earlier, and the

CAUTION

and 8b and enter - 0- on line 8c. You

more than 15 years. Therefore, the

domestic production activities deduction

cannot take an exception.

corporation cannot carry forward an

under section 199) plus

Line 8a. If this Form 4626 is for a

NOL to the 2010 tax year from a loss

2. The smaller of:

member of a controlled group of

year beginning before 1995.

a. The sum of the ATNOL

corporations, subtract $150,000 from

The ATNOL for a loss year is the

carrybacks and carryforwards to the tax

the combined AMTI of all members of

excess of the deductions allowed in

year attributable to qualified disaster

the controlled group. Divide the result

figuring AMTI (excluding the ATNOLD)

losses, qualified Gulf Opportunity Zone

among the members of the group in the

over the income included in AMTI. This

losses, qualified recovery assistance

same manner as the $40,000 tentative

excess is figured with the modifications

losses, qualified disaster recovery

exemption is divided among the

in section 172(d), taking into account

assistance losses, and applicable 2008

members. Enter this member’s share

the adjustments in sections 56 and 58

and 2009 NOLs for which the

on line 8a. The tentative exemption

and preferences in section 57 (that is,

corporation made the election under

must be divided equally among the

the section 172(d) modifications must

section 172(b)(1)(H); or

members, unless all members consent

be separately figured for the ATNOL).

b. 100% of AMTI for the tax year

to a different allocation. See section

(figured without regard to the ATNOLD,

1561 for details.

In applying the rules relating to the

as discussed earlier, and the domestic

determination of the amount of

Line 8c. If this Form 4626 is for a

production activities deduction under

carrybacks and carryforwards, use the

member of a controlled group of

section 199) reduced by the amount

modification to those rules described in

corporations, reduce the member’s

determined under 1, above.

section 56(d)(1)(B)(ii).

share of the $40,000 tentative

exemption by the amount entered on

The ATNOLD is generally limited to

Enter on line 6 the smaller of the

line 8b.

90% of AMTI determined without regard

ATNOLD or the ATNOLD limitation. If

to the ATNOLD and any domestic

the corporation made the election under

Line 10.

production activities deduction under

section 172(b)(1)(H) for an applicable

section 199. To figure AMTI without

Multiply line 9 by 20% (.20) and enter

2008 or 2009 NOL, on the dotted line

regard to the ATNOLD, use a second

that amount on line 10. However, if the

next to line 6, enter “ARRA” (referring

Form 4626 as a worksheet. Complete

corporation had qualified timber gain,

to the American Recovery and

the second Form 4626 through line 5,

see the instructions below.

Reinvestment Act of 2009), or

but when figuring lines 2l and 2o, treat

Reduction of AMT tax for

“WHBAA” (referring to the Worker,

line 6 as if it were zero. The amount

corporations with qualified timber

Homeownership, and Business

figured on line 5 of the second Form

gain. If the corporation is a partner in

Assistance Act of 2009).

4626 is the corporation’s AMTI

a partnership and had net capital gain

The ATNOL can be carried back or

determined without regard to the

and a distributive share of a qualified

forward using the rules outlined in

ATNOLD. Add any domestic production

timber gain (as defined in section

section 172(b). An election under

activities deduction to this tentative

1201(b)(2)) from the partnership for the

section 172(b)(3) to forgo the carryback

total. The ATNOLD limitation is 90% of

period that began before May 23, 2009,

period for the regular tax also applies

this amount.

the corporation may be eligible for a

for the AMT.

However, if an ATNOL carried back

reduced tax on the portion of line 9

or carried forward to the tax year is

The ATNOL carried back or forward

attributable to qualified timber gain. See

attributable to qualified disaster losses

may differ from the NOL (if any) that is

section 55(b)(4). Enter the alternative

(as defined in section 172(j)), qualified

carried back or forward for the regular

tax, if any, on line 10. Attach a

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Instructions For Form 4626 - 2010 Page 7

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