Instructions For Form 4626 - 2010 Page 7


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
Kansas Storms and Tornadoes),
qualified disaster recovery assistance
losses (as defined in Pub. 4492-B,
For a corporation that held a residual
Information for Affected Taxpayers in
interest in a REMIC and is not a thrift
the Midwestern Disaster Area), or an
institution, line 7 may not be less than
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
1997, can be carried forward no
ATNOLD, as discussed earlier, and the
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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