Fillable Form Ia 6251 - Iowa Alternative Minimum Tax Computation

2015 IA 6251 Instructions

loss can be deducted, it must be reduced by any

Who Must File IA 6251?

All individuals, estates, and trusts that had one or

adjustments and tax preferences used in computing

more of the adjustments or preferences in Part I

the net operating loss. A net operating loss that is

must complete form IA 6251 to see if they owe Iowa

carried to the current tax year on line 18 cannot

Alternative Minimum Tax (AMT). Taxpayers may

exceed 90% of the amount on line 17. Any portion of

have an Iowa AMT liability even if they owed no

the net operating loss which cannot be used can be

federal AMT. Nonresidents who have a liability for

carried over to the next tax year.

Iowa AMT are required to file an Iowa return even if

Part III Exemptions Amount and Alternative

they have no regular Iowa income tax liability.

Minimum Tax Based on Iowa Filing Status

Married filing separate filers: Each spouse needs to

Line 27: Enter the amount from IA 1040, line 39, less

complete an IA 6251.

line 46; or enter the amount from IA 1041, line 23,

less line 27. If less than zero, enter zero.

NOTE: An AMT credit is available that may reduce

the regular tax of an individual for AMT paid in a prior

Part IV Nonresidents and Part-Year Residents

year. See instructions for form IA 8801.

Nonresidents and part-year residents of Iowa are

required to pay Iowa AMT only on the percentage of

Part I Adjustments and Preferences

adjustments and tax preferences which are Iowa

If you did not itemize on the federal level, lines 1, 2,

source. Lines 29-32 in Part IV must be completed to

and 4 of the IA 6251 will refer to the Iowa Schedule A

calculate the Iowa AMT liability for nonresidents and

as follows:

part-year residents only if one has Iowa source



Line 1 of the IA 6251 refers to line 3 of the IA

adjustments or preferences.

Schedule A.

Line 29: Add Iowa net income from line 26, IA 126,



Line 2 of the IA 6251 refers to line 8 of the IA

plus the total of those adjustments and tax preferences

Schedule A.

on line 13 of the IA 6251 that are from Iowa sources.

Line 4 of the IA 6251 refers to line 24 of the IA



Line 30: Add total net income from line 27, IA 126,

Schedule A.

plus the total of all adjustments and tax preferences

Enter the appropriate amounts from federal form

on line 13 of the IA 6251.

6251 for individual income tax or from federal form

Line 31: Divide line 29 by line 30 and enter the result

1041, Schedule I, for fiduciary tax. Lines 1 and 6 are

to three decimal places (Example: 0.786).

applicable only for individual income tax, and lines 12j

Line 32: Multiply line 28 by line 31. The result is the

and 12k are applicable only for fiduciary tax.

Iowa AMT and is to be entered on line 41, IA 1040, or

NOTE: The federal tax preferences for percentage

on line 25, IA 1041. See the instructions below

depletion of an oil, gas, or geothermal well and

relating to alternative minimum tax limited to net

intangible drilling costs from lines 9 and 26 of federal

worth.

form 6251, or lines 6 and 22 of federal form 1041,

Schedule I are not tax preferences but are additions to

Alternative Minimum Tax Limited to Net Worth

Taxpayers who meet all qualifications for a distressed

income on line 14 of IA 1040, or line 8 of IA 1041.

sale, but have a debt to asset ratio of 75% or less, are

Related Adjustments

Line 12i:

not subject to the AMT in an amount greater than the

Include related adjustments from line 27 of the federal

taxpayer’s net worth. In situations where a taxpayer

6251 or line 23 of federal form 1041, Schedule I only

has multiple transactions (forfeitures, transfers, sales,

to the extent the adjustments are ones that affect the

or exchanges), AMT is limited to net worth prior to the

computation of net income. An adjustment related to

last transaction in the tax year. Please complete the IA

tax-exempt interest from private activity bonds would

6251B form to determine net worth.

not be included, since this is not an Iowa tax

For additional information on what constitutes a

preference or adjustment.

“distressed sale,” contact the Taxpayer Services

Income Distribution Deduction &

Lines 12j & 12k:

Section. If calling from the Des Moines area or from

Estate Tax Deduction (IA 1041 only)

out of state, call 515-281-3114. Elsewhere in Iowa or

The amounts entered on these two lines are negative

from the Rock Island, Moline, or Omaha areas, call

and will be subtracted from the sum of lines 12a

800-367-3388 (toll free). Email:idr@iowa.gov.

through 12i when calculating the total to enter on line

12.

Part II Alternative Minimum Taxable Income

Net Operating Loss Deduction

Line 18:

A net operating loss can be carried back or carried

forward to reduce a taxpayer’s alternative minimum

taxable income. However, before the net operating

41-131b (09/16/15)

Form Ia 6251 - Iowa Alternative Minimum Tax Computation - 2015 Page 2

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