Fillable Schedule M1mt - Alternative Minimum Tax

2017 Schedule M1MT Instructions

Excess IDCs are computed as follows:

Should I file Schedule M1MT?

Line 9 – Medical and Dental Expenses

If you entered an amount on federal Sched-

1 Figure the amount of your IDCs allowed

If you had to pay federal alternative mini-

for regular tax purposes under IRC section

ule A, line 4 complete the worksheet for

mum tax when you filed your federal Form

263(c), but do not include any section

line 9 .

1040, 1040A, or 1040NR, you must com-

263(c) deduction for nonproductive wells .

plete Schedule M1MT to determine if you

Line 12—Casualty and Theft Losses

are required to pay Minnesota alternative

2 Subtract from step 1 the amount that

If you deducted casualty and theft losses on

minimum tax .

would have been allowed had you amor-

your federal Form 1040, add:

tized these IDCs over a 120-month period

You may be required to pay Minnesota alter-

• Casualty and theft loss on federal Schedule

starting with the month the well was

native minimum tax even if you did not have

A; and

placed in production . If you prefer not to

to pay federal alternative minimum tax . This

use the 120-month period, you can elect

• the amount included as a miscellaneous

situation could occur if you deducted large

to use any method that is permissible in

deduction on Schedule A for income-pro-

gambling losses or mortgage interest on your

determining cost depletion .

ducing property casualty and theft losses .

federal return . Complete the steps in the M1

instruction booklet to determine if you are

Net income is determined by taking the gross

Enter the result on line 12 .

required to file Schedule M1MT.

income that you received or accrued during

Line 29

the tax year from oil, gas and geothermal

Before you can complete Schedule M1MT,

Compare your Minnesota alternative mini-

wells and reducing it by the deductions al-

you must first complete Part I of federal

mum tax on line 27 to the tax from the table

locable to these properties (reduced by the

Form 6251, even if you were not required

on line 28:

excess IDCs) .

to file Form 6251 with your federal return.

When refiguring net income, use only in-

• If line 28 is equal to or more than line

Line Instructions

come and deductions allowed for alternative

27, you are not required to pay Minnesota

minimum tax purposes .

alternative minimum tax for 2017 . Enter

Round amounts to the nearest whole dollar.

zero on line 29 .

Note: Do not include any amounts that are

Line 5—Interest From Bonds of Another

—

If you paid Minnesota alternative

included on line 3 of this schedule .

State or From its Governmental Units

minimum tax in one or more years from

Complete the worksheet at the bottom of

Line 7—Depletion

1989 through 2016, you should com-

this page .

In the case of oil wells and other wells

plete Schedule M1MTC to see if you are

of nonintegrated oil companies, enter the

Line 6—Intangible Drilling Costs

eligible for a credit .

amount by which your depletion deduction

If, for regular tax purposes, you elected the

—

If you did not pay Minnesota alter-

under IRC section 611 exceeds the adjusted

optional 60-month write-off under section

native minimum tax in any year from

basis of the property at the end of your tax

59(e) of the Internal Revenue Code (IRC) for

1989 through 2016, do not file Schedule

year . In computing your year-end adjusted

all property in this category, skip line 6 . No

M1MTC .

basis, use the rules of IRC section 1016 .

adjustment is necessary .

However, do not reduce the adjusted basis by

• If line 27 is more than line 28, you are

Intangible drilling costs (IDCs) from oil,

the current year’s depletion .

required to pay Minnesota alternative

gas and geothermal wells are a tax prefer-

minimum tax for 2017 .

Figure the excess amount separately for each

ence item to the extent that the excess IDCs

property . Only depreciation that exceeds the

exceed 65 percent of the net income from the

Subtract line 28 from line 27 . Enter the

adjusted basis of a property is treated as a tax

wells . The tax preference item is computed

result on line 29 and on line 10 of Form

preference amount .

separately for oil and gas properties and for

M1 .

geothermal properties .

Note: Do not include any amounts that are

Include this schedule and a copy of

included on line 3 of this schedule .

federal Form 6251 when you file

Form M1.

Worksheet for Line 5

1 Add line 3 and line 4 of Schedule M1M . . . . . . . . . . . . . . . . . . . . . . . . . .

2 Enter the amount of non-Minnesota municipal bond interest

included on line 12 of federal Form 6251 . . . . . . . . . . . . . . . . . . . . . . . . .

3 Subtract step 2 from step 1 . Enter the result on line 5 . . . . . . . . . . . . . . .

Worksheet for Line 9

1 Enter the amount from line 1 of your federal Schedule A . . . . . . . . . . . . .

2 Enter the amount from line 2 of your federal Schedule A . . . . . . . . . . . . .

3 Multiply step 2 by 10% (0 .10) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4 Subtract step 3 from step 1 . If step 3 is more than step 1, enter 0 .

Enter the result on line 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Schedule M1mt - Alternative Minimum Tax - 2017 Page 2

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