Instructions For Form 4626 - Alternative Minimum Tax-Corporations

Line 7. Alternative

use any part of its 2010 unallowed

However, if an ATNOL carried back

potential negative ACE adjustment of

or carried forward to the tax year is

Minimum Taxable

$150,000 to reduce its 2011 positive

attributable to qualified disaster losses

ACE adjustment of $112,500.

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

Income

Corporation C would complete the

Gulf Opportunity Zone losses (as

For a corporation that held a residual

relevant portion of its 2011 Form 4626

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

interest in a REMIC and is not a thrift

as follows.

qualified recovery assistance losses (as

institution, line 7 may not be less than

defined in Pub. 4492-A, Information for

Line

Amount

the total of the amounts shown on

Taxpayers Affected by the May 4, 2007

Schedule(s) Q (Form 1066), Quarterly

$250,000

Kansas Storms and Tornadoes),

Notice to Residual Interest Holder of

150,000

qualified disaster recovery assistance

REMIC Taxable Income or Net Loss

112,500

losses (as defined in Pub. 4492-B,

Allocation, line 2c, for the periods

-0-

Information for Affected Taxpayers in

included in the corporation’s tax year. If

112,500

the Midwestern Disaster Area), or an

the total of the line 2c amounts is larger

applicable 2008 or 2009 NOL for which

than the amount the corporation would

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

Line 6. Alternative Tax

otherwise enter on line 7, enter that

carryback period (under section

total and write “Sch. Q” on the dotted

Net Operating Loss

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

line next to line 7.

year is limited to the sum of:

Deduction (ATNOLD)

Line 8. Exemption

1. The smaller of:

The ATNOLD is the sum of the

a. The sum of the ATNOL

Phase-Out Computation

alternative tax net operating loss

carrybacks and carryforwards to the tax

(ATNOL) carrybacks and carryforwards

year attributable to net operating losses

If alternative minimum taxable

to the tax year, subject to the limitation

other than qualified disaster losses,

income entered on line 7 is

explained below. For a corporation that

qualified Gulf Opportunity Zone losses,

$310,000 or more, skip lines 8a

held a residual interest in a real estate

CAUTION

qualified recovery assistance losses,

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

mortgage investment conduit (REMIC),

qualified disaster recovery assistance

cannot take an exception.

figure the ATNOLD without regard to

losses, and applicable 2008 and 2009

any excess inclusion.

Line 8a. If this Form 4626 is for a

NOLs for which the corporation made

member of a controlled group of

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

NOLs arising in tax years

corporations, subtract $150,000 from

beginning before August 6,

the combined AMTI of all members of

1997, can be carried forward no

b. Ninety percent of AMTI for the tax

CAUTION

the controlled group. Divide the result

more than 15 years. Therefore, the

year (figured without regard to the

among the members of the group in the

corporation cannot carry forward an

ATNOLD, as discussed earlier, and the

same manner as the $40,000 tentative

NOL to the 2011 tax year from a loss

domestic production activities deduction

exemption is divided among the

year beginning before 1996.

under section 199) plus

members. Enter this member’s share

2. The smaller of:

on line 8a. The tentative exemption

The ATNOL for a loss year is the

must be divided equally among the

excess of the deductions allowed in

a. The sum of the ATNOL

members, unless all members consent

figuring AMTI (excluding the ATNOLD)

carrybacks and carryforwards to the tax

to a different allocation. See section

over the income included in AMTI. This

year attributable to qualified disaster

1561 for details.

excess is figured with the modifications

losses, qualified Gulf Opportunity Zone

in section 172(d), taking into account

losses, qualified recovery assistance

Line 8c. If this Form 4626 is for a

the adjustments in sections 56 and 58

losses, qualified disaster recovery

member of a controlled group of

and preferences in section 57 (that is,

assistance losses, and applicable 2008

corporations, reduce the member’s

the section 172(d) modifications must

and 2009 NOLs for which the

share of the $40,000 tentative

be separately figured for the ATNOL).

corporation made the election under

exemption by the amount entered on

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

line 8b.

In applying the rules relating to the

b. 100% of AMTI for the tax year

determination of the amount of

Line 10

(figured without regard to the ATNOLD,

carrybacks and carryforwards, use the

as discussed earlier, and the domestic

modification to those rules described in

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

production activities deduction under

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

that amount on line 10.

section 199) reduced by the amount

The ATNOLD is generally limited to

determined under 1, above.

Line 11. Alternative

90% of AMTI determined without regard

to the ATNOLD and any domestic

Minimum Tax Foreign

Enter on line 6 the smaller of the

production activities deduction under

ATNOLD or the ATNOLD limitation.

section 199. To figure AMTI without

Tax Credit (AMTFTC)

The ATNOL can be carried back or

regard to the ATNOLD, use a second

The AMTFTC is the foreign tax credit

forward using the rules outlined in

Form 4626 as a worksheet. Complete

refigured as follows.

section 172(b). An election under

the second Form 4626 through line 5,

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

but when figuring lines 2l and 2o, treat

1. Complete a separate AMT Form

period for the regular tax also applies

line 6 as if it were zero. The amount

1118, Foreign Tax

figured on line 5 of the second Form

for the AMT.

Credit — Corporations, for each

4626 is the corporation’s AMTI

separate limitation category specified at

The ATNOL carried back or forward

determined without regard to the

the top of Form 1118. Include as a

may differ from the NOL (if any) that is

ATNOLD. Add any domestic production

separate limitation category dividends

carried back or forward for the regular

activities deduction to this tentative

received from a corporation that

tax. Keep adequate records for both the

total. The ATNOLD limitation is 90% of

qualifies for the American Samoa

this amount.

AMT and the regular tax.

economic development credit if the

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Instructions For Form 4626 - Alternative Minimum Tax-Corporations - 2011 Page 7

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