U.S. Individual Income Tax Return

2011

Department of the Treasury
Internal Revenue Service

Instructions for Form 6251
Alternative Minimum Tax—Individuals
Section references are to the Internal
Revenue Code unless otherwise noted.

General Instructions
What’s New
Exemption amount. The exemption
amount has increased to $48,450
($74,450 if married filing jointly or
qualifying widow(er); $37,225 if married
filing separately).
Future developments. For
information about any additional
changes to the 2011 tax law or other
developments affecting Form 6251 or
its instructions, go to www.irs.gov/
form6251.

Who Must File

Attach Form 6251 to your return if any
of the following statements is true.
1. Form 6251, line 31, is greater
than line 34.
2. You claim any general business
credit, and either line 6 (in Part I) or line
25 of Form 3800 is more than zero.
3. You claim the qualified electric
vehicle credit, the personal use part of
the alternative fuel vehicle refueling
property credit, or the credit for prior
year minimum tax.
4. The total of Form 6251, lines 8
through 27, is negative and line 31
would be greater than line 34 if you did
not take into account lines 8 through
27.

Purpose of Form

Use Form 6251 to figure the amount, if
any, of your alternative minimum tax
(AMT). The AMT applies to taxpayers
who have certain types of income that
receive favorable treatment, or who
qualify for certain deductions, under the
tax law. These tax benefits can
significantly reduce the regular tax of
some taxpayers with higher economic
incomes. The AMT sets a limit on the
amount these benefits can be used to
reduce total tax.
Also use Form 6251 to help you
figure the tax liability limit on the credits
listed under Who Must File.

Recordkeeping

For the AMT, certain items of income,
deductions, etc., receive different tax
treatment than for the regular tax.
Therefore, you need to refigure items
for the AMT that you figured for the
Dec 20, 2011

regular tax. In some cases, you may
wish to do this by completing the
applicable tax form a second time. If
you do complete another form, do not
attach it to your tax return, but keep it
for your records. However, you may
have to attach an AMT Form 1116,
Foreign Tax Credit, to your return; see
the instructions for line 32.
For the regular tax, some deductions
and credits may result in carrybacks or
carryforwards to other tax years.
Examples are investment interest
expense, a net operating loss, a capital
loss, a passive activity loss, and the
foreign tax credit. Because you may
have to refigure these items for the
AMT, the carryback or carryforward
amount may be different for the AMT
than for the regular tax. Your at-risk
limits and basis amounts also may
differ for the AMT. Therefore, you must
keep records of these different
amounts.

Partners and
Shareholders

If you are a partner in a partnership or a
shareholder in an S corporation, see
Schedule K-1 and its instructions to
figure your adjustments or preferences
from the partnership or S corporation to
include on Form 6251.

Nonresident Aliens

If you are a nonresident alien and you
disposed of U.S. real property interests
at a gain, you must make a special
computation. Fill in Form 6251 through
line 30. If your net gain from the
disposition of U.S. real property
interests and the amount on line 28 are
both greater than the tentative amount
you figured for line 30, replace the
amount on line 30 with the smaller of
that net gain or the amount on line 28.
Also, enter “RPI” on the dotted line next
to line 30. Otherwise, do not change
line 30.

Credit for Prior Year
Minimum Tax

See Form 8801, Credit for Prior Year
Minimum Tax — Individuals, Estates,
and Trusts, if you paid AMT for 2010 or
you had a minimum tax credit
carryforward on your 2010 Form 8801.
If you pay AMT for 2011, you may be
able to take a credit on Form 8801 for
2012.
Cat. No. 64277P

Optional Write-Off for
Certain Expenditures

There is no AMT adjustment for the
following items if you elect for the
regular tax to deduct them ratably over
the period of time shown.
• Circulation expenditures — 3 years
(section 173).
• Research and experimental
expenditures — 10 years (section
174(a)).
• Mining exploration and development
costs — 10 years (sections 616(a) and
617(a)).
• Intangible drilling costs — 60 months
(section 263(c)).
For information on making the
election, see section 59(e) and
Regulations section 1.59-1. Also see
Pub. 535, Business Expenses.

Specific Instructions
If you owe AMT, you may be
TIP able to lower your total tax
(regular tax plus AMT) by
claiming itemized deductions on Form
1040, even if your total itemized
deductions are less than the standard
deduction. This is because the standard
deduction is not allowed for the AMT
and, if you claim the standard
deduction on Form 1040, you cannot
claim itemized deductions for the AMT.

Part I—Alternative
Minimum Taxable
Income (AMTI)
To avoid duplication, any
adjustment or preference for line
CAUTION 5, 19, or 20 or for a tax shelter
farm activity on line 27 must not be
taken into account in figuring the
amount to enter for any other
adjustment or preference.

!

Line 1
If Form 1040, line 43, includes a
write-in amount (such as a capital
construction fund deduction for
commercial fishermen), adjust line 1 by
the write-in amount.
Form 1040NR. If you are filing Form
1040NR, enter the amount from Form
1040NR, line 39. If less than zero, enter
as a negative amount.

Home Mortgage Interest Adjustment
Worksheet—Line 4

Line 5—Miscellaneous
Deductions
Keep for Your Records

1. Enter the total of the home mortgage interest you deducted on lines
10 through 12 of Schedule A (Form 1040) and any mortgage
insurance premiums you deducted on line 13 of Schedule A (Form
1040) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.
2. Enter the part, if any, of the interest included on line
1 above that was paid on an eligible mortgage
(defined in the line 4 instructions). Include any
mortgage insurance premiums included on line 1
above that were paid in connection with an eligible
mortgage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.
3. Enter the part, if any, of the interest included on line
1 above that was paid on a mortgage whose
proceeds were used in a refinancing (including a
second or later refinancing) of an eligible mortgage.
Include any mortgage insurance premiums included
on line 1 above that were paid in connection with
such a mortgage. Do not include any interest paid
on (or any mortgage insurance premiums paid in
connection with) the part of the balance of the new
mortgage that exceeded the balance of the original
eligible mortgage immediately before it was
refinanced (or, if smaller, the balance of any prior
refinanced mortgage immediately before that
mortgage was refinanced) . . . . . . . . . . . . . . . . . . 3.
4. Enter the part, if any, of the interest included on line
1 above that was paid on a mortgage:
• Taken out before July 1, 1982, and
• Secured, at the time the mortgage was taken out,
by your main home or a qualified dwelling used by
you or your family (see definitions in the line 4
instructions).
Do not include any amount entered on line 2 or line
3 above . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.
5. Add lines 2 through 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.
6. Subtract line 5 from line 1 and enter the result on Form 6251, line 4 . . 6.

Line 3—Taxes
Enter the amount of all taxes from
Schedule A (Form 1040), line 9, except
any generation-skipping transfer taxes
on income distributions.
Be sure to include any state and
local general sales taxes from Schedule
A, line 5.
Form 1040NR. If you are filing Form
1040NR, enter the amount of all taxes
from Schedule A (Form 1040NR), line
1, except any generation-skipping
transfer taxes on income distributions.

Line 4—Home Mortgage
Interest Adjustment
Complete the Home Mortgage Interest
Adjustment Worksheet to figure the
amount to enter on this line. The
definitions of certain terms used in the
worksheet are as follows.
Eligible mortgage. An eligible
mortgage is a mortgage whose
proceeds were used to buy, build, or
substantially improve your main home
or a second home that is a qualified
dwelling. A mortgage whose proceeds
were used to refinance another
mortgage is not an eligible mortgage.

Qualified dwelling. A qualified
dwelling is any house, apartment,
condominium, or mobile home not used
on a transient basis.
Family. Family includes only your
brothers and sisters (whether by whole
or half blood), your spouse, your
ancestors, and your lineal descendants.
Example. In 2011, Dave and
Jennifer paid $10,000 in interest on a
mortgage they took out to buy their
home (an eligible mortgage). In May
2011, they refinanced that mortgage
and paid $9,000 in interest through the
rest of the year. The balance of the new
mortgage is the same as the balance of
the old mortgage. In July 2011, they
obtained a home equity loan on their
home and used the proceeds to buy a
new car. They paid $5,000 in interest
on the home equity loan in 2011. They
enter the following amounts on the
Home Mortgage Interest Adjustment
Worksheet: $24,000 on line 1 ($10,000
plus $9,000 plus $5,000), $10,000 on
line 2, $9,000 on line 3, $ -0- on line 4,
$19,000 on line 5 ($10,000 plus
$9,000), and $5,000 on line 6 ($24,000
minus $19,000).

-2-

If you are filing Form 1040NR, enter the
amount from Schedule A (Form
1040NR), line 13.

Line 7—Refund of Taxes
Include any refund from Form 1040,
line 10 (or Form 1040NR, line 11), that
is attributable to state or local income
taxes. Also include any refunds
received in 2011 and included in
income on Form 1040, line 21, that are
attributable to state or local personal
property taxes or general sales taxes,
foreign income taxes, or state, local, or
foreign real property taxes. Enter the
total as a negative amount. If you
include an amount from Form 1040, line
21, you must enter a description and
the amount next to the entry space for
line 7. For example, if you include a
refund of real property taxes, enter “real
property” and the amount next to the
entry space.

Line 8—Investment Interest
If you filled out Form 4952, Investment
Interest Expense Deduction, for your
regular tax, you will need to fill out a
second Form 4952 for the AMT as
follows.
Step 1. Follow the Form 4952
instructions for line 1, but also include
the following amounts when completing
line 1.
• Any interest expense on Form 6251,
line 4, that was paid or accrued on
indebtedness attributable to property
held for investment within the meaning
of section 163(d)(5) (for example,
interest on a home equity loan whose
proceeds were invested in stocks or
bonds).
• Any interest that would have been
deductible if tax-exempt interest on
private activity bonds were includible in
gross income.
Step 2. Enter your AMT disallowed
investment interest expense from 2010
on line 2. Complete line 3.
Step 3. When completing Part II,
refigure the following amounts, taking
into account all adjustments and
preferences.
• Gross income from property held for
investment.
• Net gain from the disposition of
property held for investment.
• Net capital gain from the disposition
of property held for investment.
• Investment expenses.
Include on line 4a any tax-exempt
interest income from private activity
bonds that must be included on Form
6251, line 12. If you have any
investment expenses that would have
been deductible if the interest on the
bonds were includible in gross income
for the regular tax, include them on line
5.
On line 4g, enter the smaller of:
Instructions for Form 6251 (2011)

1. The amount from line 4g of your
regular tax Form 4952, or
2. The total of lines 4b and 4e of
this AMT Form 4952.
Step 4. Complete Part III.
Enter on Form 6251, line 8, the
difference between line 8 of your AMT
Form 4952 and line 8 of your regular
tax Form 4952. If your AMT expense is
greater, enter the difference as a
negative amount.
Investment interest expense that is
not an itemized deduction. If you did
not itemize deductions and you had
investment interest expense, do not
enter an amount on Form 6251, line 8,
unless you reported investment interest
expense on Schedule E, Supplemental
Income and Loss (Form 1040). If you
did, follow the steps above for
completing Form 4952. Allocate the
investment interest expense allowed on
line 8 of the AMT Form 4952 in the
same way you did for the regular tax.
Enter on Form 6251, line 8, the
difference between the amount allowed
on Schedule E for the regular tax and
the amount allowed on Schedule E for
the AMT.

Line 9—Depletion
You must refigure your depletion
deduction for the AMT. To do so, use
only income and deductions allowed for
the AMT when refiguring the limit based
on taxable income from the property
under section 613(a) and the limit
based on taxable income, with certain
adjustments, under section 613A(d)(1).
Also, your depletion deduction for
mines, wells, and other natural deposits
under section 611 is limited to the
property’s adjusted basis at the end of
the year, as refigured for the AMT,
unless you are an independent
producer or royalty owner claiming
percentage depletion for oil and gas
wells under section 613A(c). Figure this
limit separately for each property. When
refiguring the property’s adjusted basis,
take into account any AMT adjustments
you made this year or in previous years
that affect basis (other than current
year depletion).
Enter the difference between the
regular tax and AMT deduction. If the
AMT deduction is greater, enter the
difference as a negative amount.

Line 10—Net Operating Loss
Deduction
If you are filing Form 1040NR, enter
your net operating loss deduction from
Form 1040NR, line 21, as a positive
amount.

Line 11—Alternative Tax Net
Operating Loss Deduction
(ATNOLD)
The ATNOLD is the sum of the
alternative tax net operating loss
(ATNOL) carrybacks and carryforwards
Instructions for Form 6251 (2011)

to the tax year, subject to the limitation
explained later. Figure your ATNOLD
as follows.
Your ATNOL for a loss year is the
excess of the deductions allowed for
figuring AMTI (excluding the ATNOLD)
over the income included in AMTI.
Figure this excess with the
modifications in section 172(d), taking
into account your AMT adjustments and
preferences (that is, the section 172(d)
modifications must be separately
figured for the ATNOL). For example,
the limitation of nonbusiness
deductions to the amount of
nonbusiness income must be
separately figured for the ATNOL, using
only nonbusiness income and
deductions that are included in AMTI.
Your ATNOLD may be limited. To
figure the ATNOLD limitation, you must
first figure your AMTI without regard to
the ATNOLD and any domestic
production activities deduction. To do
this, first figure a tentative amount for
line 9 by treating line 11 as if it were
zero. Next, figure a tentative total of
lines 1 through 27 using the tentative
line 9 amount and treating line 11 as if
it were zero. Add any domestic
production activities deduction to this
tentative total. Your ATNOLD is
limited to 90% of the result.
However, the 90% limit does not
apply to an ATNOL that is attributable
to qualified disaster losses (as defined
in section 172(j)), qualified Gulf
Opportunity Zone losses (as defined in
section 1400N(k)(2)), qualified recovery
assistance losses (as defined in Pub.
4492-A, Information for Taxpayers
Affected by the May 4, 2007, Kansas
Storms and Tornadoes), qualified
disaster recovery assistance losses (as
defined in Pub. 4492-B, Information for
Affected Taxpayers in the Midwestern
Disaster Areas), or a 2008 or 2009 loss
that you elected to carry back more
than 2 years under section
172(b)(1)(H). Therefore, if an ATNOL
that is carried back or carried forward to
the tax year is attributable to any of
those losses, the ATNOLD for the tax
year is limited to the sum of:
1. The smaller of:
a. The sum of the ATNOL
carrybacks and carryforwards to the tax
year attributable to net operating losses
other than those losses described in 2a
below, or
b. 90% of AMTI for the tax year
(figured without regard to the ATNOLD
and any domestic production activities
deduction, as discussed earlier), plus
2. The smaller of:
a. The sum of the ATNOL
carrybacks and carryforwards to the tax
year attributable to qualified disaster
losses, qualified Gulf Opportunity Zone
losses, qualified recovery assistance
losses, qualified disaster recovery
assistance losses, and any 2008 or
2009 loss that you elected to carry back

-3-

more than 2 years under section
172(b)(1)(H), or
b. 100% of AMTI for the tax year
(figured without regard to the ATNOLD
and any domestic production activities
deduction, as discussed earlier)
reduced by the amount determined
under (1).
Enter on line 11 the smaller of the
ATNOLD or the ATNOLD limitation.
Any ATNOL not used may be carried
back 2 years or forward up to 20 years
(15 years for loss years beginning
before 1998). In some cases, the
carryback period is longer than 2 years;
for details, see Pub. 536. See Pub.
4492-A for the part of an ATNOL that is
a qualified recovery assistance loss or
Pub. 4492-B for the part of an ATNOL
that is a qualified disaster recovery
assistance loss.
The treatment of ATNOLs does not
affect your regular tax NOL.
Since ATNOLs arising in loss
years beginning before 1998
CAUTION can be carried forward no more
than 15 years, you cannot carry forward
to 2011 an ATNOL from a loss
beginning before 1996.
Note. If you elected under section
172(b)(3) to forgo the carryback period
for the regular tax, the election also
applies for the AMT.

!

Line 12—Interest From
Private Activity Bonds
Enter on line 12 interest you earned on
“specified private activity bonds”
reduced (but not below zero) by any
deduction that would have been
allowable if the interest were includible
in gross income for the regular tax.
Each payer of this type of interest
should send you a Form 1099-INT
showing the amount of this interest in
box 9.
Generally, the term “specified private
activity bond” means any private activity
bond (as defined in section 141) the
interest on which is not includible in
gross income for the regular tax, if the
bond was issued after August 7, 1986.
But specified private activity bonds
generally do not include any bonds
issued in 2009 or 2010. See section
57(a)(5) for other exceptions and more
details.
Do not include interest on qualified
Gulf Opportunity Zone bonds or
qualified Midwestern disaster area
bonds.
Exempt-interest dividends paid by a
regulated investment company are
treated as interest income on specified
private activity bonds to the extent the
dividends are attributable to interest on
the bonds received by the company,
minus an allocable share of the
expenses paid or incurred by the
company in earning the interest. This

amount should also be reported to you
on Form 1099-INT in box 9.
If you are filing Form 8814, Parents’
Election To Report Child’s Interest and
Dividends, any tax-exempt interest
income from line 1b of that form that is
a preference item must be included on
this line.

Line 13—Qualified Small
Business Stock
If you claimed the exclusion under
section 1202 for gain on qualified small
business stock held more than 5 years,
multiply the excluded gain (as shown
on Form 8949 in column (g)) by 7%
(.07). Enter the result on line 13 as a
positive amount.

Line 14—Exercise of
Incentive Stock Options
For the regular tax, no income is
recognized when an incentive stock
option (ISO), as defined in section
422(b), is exercised. However, this rule
does not apply for the AMT. Instead,
you generally must include on line 14
the excess, if any, of:
1. The fair market value of the stock
acquired through exercise of the option
(determined without regard to any lapse
restriction) when your rights in the
acquired stock first become
transferable or when these rights are
no longer subject to a substantial risk of
forfeiture, over
2. The amount you paid for the
stock, including any amount you paid
for the ISO used to acquire the stock.
Even if your rights in the stock are
not transferable and are subject to a
substantial risk of forfeiture, you may
elect to include in AMT income the
excess of the stock’s fair market value
(determined without regard to any lapse
restriction) over the exercise price upon
the transfer to you of the stock acquired
through exercise of the option. You
must make the election by the 30th day
after the date of the transfer. See Pub.
525, Taxable and Nontaxable Income,
for more details.
If you acquired stock by exercising
an ISO and you disposed of that stock
in the same year, the tax treatment
under the regular tax and the AMT is
the same, and no adjustment is
required.
Increase your AMT basis in any
stock acquired through the exercise of
an ISO by the amount of the
adjustment. Keep adequate records for
both the AMT and regular tax so that
you can figure your adjustment. See
the instructions for line 17.
Form 3921. If you received a Form
3921, it may help you figure your
adjustment.
Example. You exercised an ISO to
acquire 100 shares of stock in 2011.

Your rights in the acquired stock first
became transferable on the date you
exercised the ISO and were not subject
to a substantial risk of forfeiture. You
did not pay anything for the ISO. You
did not sell the acquired stock during
2011. You received a Form 3921 that
shows $10 in box 3 (the exercise price
you paid for each share), $25 in box 4
(the fair market value of each share),
and 100 shares in box 5. To figure your
adjustment, multiply the amount in box
4, $25, by the 100 shares in box 5. The
result is $2,500, the fair market value of
all the shares. Then multiply the
amount in box 3, $10, by the 100
shares in box 5. The result is $1,000,
the amount you paid for all the shares.
Your adjustment is $1,500 ($2,500 −
$1,000). Enter it on Form 6251, line 14.

Line 16—Large Partnerships
If you were a partner in an electing
large partnership, enter the amount
from Schedule K-1 (Form 1065-B), box
6. Take into account any amount from
box 5 on Form 6251, line 19.

Line 17—Disposition of
Property
Your AMT gain or loss from the
disposition of property may be different
from your gain or loss for the regular
tax. This is because the property may
have a different adjusted basis for the
AMT. Use this line to report any AMT
adjustment resulting from refiguring:
1. Gain or loss from the sale,
exchange, or involuntary conversion of
property reported on Form 4797, Sales
of Business Property;
2. Casualty gain or loss to business
or income-producing property reported
on Form 4684, Casualties and Thefts;
3. Ordinary income from the
disposition of property not already
taken into account in (1) or (2) or on
any other line on Form 6251, such as a
disqualifying disposition of stock
acquired in a prior year by exercising
an incentive stock option; and
4. Capital gain or loss (including any
carryover that is different for the AMT)
reported on Form 8949, Sales and
Other Dispositions of Capital Assets, or
Schedule D (Form 1040), Capital Gains
and Losses.
First figure any ordinary income
adjustment related to (3) above. Then,
refigure Form 4684, Form 4797, Form
8949, and Schedule D for the AMT, if
applicable, by taking into account any
adjustments you made this year or in
previous years that affect your basis or
otherwise result in a different amount
for the AMT.
If you have a capital loss after
refiguring Schedule D for the AMT,
apply the $3,000 capital loss limitation
separately to the AMT loss. Because
the amount of your gains and losses
may be different for the AMT, the

-4-

amount of any capital loss carryover
also may be different for the AMT. See
the example that begins below. To
figure your AMT capital loss carryover,
fill out an AMT Capital Loss Carryover
Worksheet in the Schedule D
instructions.
For each of the four items listed
earlier, figure the difference between
the amount included in taxable income
for the regular tax and the amount
included in income for the AMT. Treat
the difference as a negative amount if
(a) both the AMT and regular tax
amounts are zero or more and the AMT
amount is less than the regular tax
amount or (b) the AMT amount is a
loss, and the regular tax amount is a
smaller loss or is zero or more.
Enter on line 17 the combined
adjustments for the four items listed
earlier.
Example. On March 13, 2010,
Victor Ash, whose filing status is single,
paid $20,000 to exercise an incentive
stock option (which was granted to him
on January 3, 2009) to buy 200 shares
of stock worth $200,000. The $180,000
difference between his cost and the
value of the stock at the time he
exercised the option is not taxable for
the regular tax. His regular tax basis in
the stock at the end of 2010 is $20,000.
For the AMT, however, Ash must
include the $180,000 as an adjustment
on his 2010 Form 6251. His AMT basis
in the stock at the end of 2010 is
$200,000.
On January 18, 2011, Ash sold 100
of the shares for $75,000. Because Ash
did not hold these shares more than 1
year, that sale is a disqualifying
disposition. For the regular tax, Ash has
ordinary income of $65,000 ($75,000
minus his $10,000 basis in the 100
shares). Ash has no capital gain or loss
for the regular tax resulting from the
sale. For the AMT, Ash has no ordinary
income, but has a short-term capital
loss of $25,000 ($75,000 minus his
$100,000 AMT basis in the 100
shares).
On April 21, 2011, Ash sold the other
100 shares for $60,000. Because he
held the shares for more than 1 year
and more than 2 years had passed
since the option was granted to him,
the sale is not a disqualifying
disposition. For the regular tax, Ash has
a long-term capital gain of $50,000
($60,000 minus his regular tax basis of
$10,000). For the AMT, Ash has a
long-term capital loss of $40,000
($60,000 minus his AMT basis of
$100,000).
Ash has no other sales of stock or
other capital assets for 2011. Ash
enters a total negative adjustment of
$118,000 on line 17 of his 2011 Form
6251, figured as follows:
• Ash figures a negative adjustment of
$65,000 for the difference between the
Instructions for Form 6251 (2011)

$65,000 of regular tax ordinary income
and the $0 of AMT ordinary income for
the first sale.
• For the regular tax, Ash has $50,000
capital gain net income from the
second sale. For the AMT, Ash has a
$25,000 short-term capital loss from the
first sale, and a $40,000 long-term
capital loss from the second sale,
resulting in a net capital loss of $65,000
for the AMT. However, only $3,000 of
the $65,000 net capital loss is allowed
for 2011 for the AMT. The difference
between the regular tax gain of $50,000
and the $3,000 loss allowed for the
AMT results in a $53,000 negative
adjustment to include on line 17.
Ash has an AMT capital loss
carryover from 2011 to 2012 of
$62,000, of which $22,000 is short-term
and $40,000 is long-term. If he has no
other Form 8949 or Schedule D
transactions for 2012, his adjustment
reported on his 2012 Form 6251 would
be limited to ($3,000), the amount of his
capital loss limitation for 2012.

Line 18—Post-1986
Depreciation
This section describes when
depreciation must be refigured for the
AMT and how to figure the amount to
enter on line 18.
Do not use line 18 for depreciation
related to the following.
• Employee business expenses
claimed on line 21 of Schedule A (Form
1040) or line 7 of Schedule A (Form
1040NR). Take this adjustment into
account on line 5.
• Passive activities. Take this
adjustment into account on line 19.
• An activity for which you are not at
risk or income or loss from a
partnership or an S corporation if the
basis limitations apply. Take this
adjustment into account on line 20.
• A tax shelter farm activity. Take this
adjustment into account on line 27.

What Depreciation Must Be
Refigured for the AMT?
Generally, you must refigure
depreciation for the AMT, including
depreciation allocable to inventory
costs, for:
• Property placed in service after 1998
that is depreciated for the regular tax
using the 200% declining balance
method (generally 3-, 5-, 7-, and
10-year property under the modified
accelerated cost recovery system
(MACRS), except for qualified property
eligible for the special depreciation
allowance (discussed later));
• Section 1250 property placed in
service after 1998 that is not
depreciated for the regular tax using
the straight line method; and
• Tangible property placed in service
after 1986 and before 1999. (If the
transitional election was made under
section 203(a)(1)(B) of the Tax Reform
Instructions for Form 6251 (2011)

Act of 1986, this rule applies to property
placed in service after July 31, 1986.)

How Is Depreciation Refigured
for the AMT?

What Depreciation Is Not
Refigured for the AMT?

Property placed in service before
1999. Refigure depreciation for the
AMT using ADS, with the same
convention used for the regular tax.
See the following table for the method
and recovery period to use.

Do not refigure depreciation for the
AMT for the following.
• Residential rental property placed in
service after 1998.
• Nonresidential real property with a
class life of 27.5 years or more placed
in service after 1998 that is depreciated
for the regular tax using the straight line
method.
• Other section 1250 property placed
in service after 1998 that is depreciated
for the regular tax using the straight line
method.
• Property (other than section 1250
property) placed in service after 1998
that is depreciated for the regular tax
using the 150% declining balance
method or the straight line method.
• Property for which you elected to use
the alternative depreciation system
(ADS) of section 168(g) for the regular
tax.
• Qualified property that is or was
eligible for a special depreciation
allowance if the depreciable basis of
the property for the AMT is the same as
for the regular tax. This applies to any
special depreciation allowance,
including those for qualified disaster
assistance property, qualified reuse and
recycling property, qualified cellulosic
biofuel plant property, qualified New
York Liberty Zone property, qualified
Gulf Opportunity Zone property, and
Kansas disaster area qualified recovery
assistance property. The special
allowance is deductible for the AMT,
and there also is no adjustment
required for any depreciation figured on
the remaining basis of the qualified
property if the depreciable basis of the
property for the AMT is the same as for
the regular tax. Property for which an
election is in effect to not have the
special allowance apply is not qualified
property.
• Any part of the cost of any property
for which you elected to take a section
179 expense deduction. The reduction
to the depreciable basis of section 179
property by the amount of the section
179 expense deduction is the same for
the regular tax and the AMT.
• Motion picture films, videotapes, or
sound recordings.
• Property depreciated under the
unit-of-production method or any other
method not expressed in a term of
years.
• Indian reservation property that
meets the requirements of section
168(j).
• Qualified revitalization expenditures
for which you elected to claim the
commercial revitalization deduction
under section 1400I.
• A natural gas gathering line placed in
service after April 11, 2005.

-5-

Property Placed in Service Before 1999
IF the property is... THEN use the...
section 1250
property

straight line method
over 40 years.

tangible property
straight line method
(other than section over the property’s
1250 property)
AMT class life.
depreciated using
straight line method
for the regular tax
any other tangible
property

150% declining
balance method,
switching to straight
line method the first
tax year it gives a
larger deduction,
over the property’s
AMT class life.

Property placed in service after 1998.
Use the same convention and recovery
period used for the regular tax. For
property other than section 1250
property, use the 150% declining
balance method, switching to straight
line the first tax year it gives a larger
deduction. For section 1250 property,
use the straight line method.

How Is the AMT Class Life
Determined?
The class life used for the AMT is not
necessarily the same as the recovery
period used for the regular tax. The
class lives for the AMT are listed in
Rev. Proc. 87-56, 1987-2 C.B. 674, and
in Pub. 946, How To Depreciate
Property. Use 12 years for any tangible
personal property not assigned a class
life.
See Pub. 946 for tables that can
TIP be used to figure AMT
depreciation. Rev. Proc. 89-15,
1989-1 C.B. 816, has special rules for
short years and for property disposed
of before the end of the recovery
period.

How Is the Adjustment
Figured?
Subtract the AMT deduction for
depreciation from the regular tax
deduction and enter the result. If the
AMT deduction is more than the regular
tax deduction, enter the difference as a
negative amount.
In addition to the AMT adjustment to
your deduction for depreciation, you
must also adjust the amount of
depreciation that was capitalized, if any,
to account for the difference between
the rules for the regular tax and the

AMT. Include on this line the current
year adjustment to taxable income, if
any, resulting from the difference.

Line 19—Passive Activities
Refigure your passive activity gains and
losses for the AMT by taking into
account all adjustments and
preferences and any AMT prior year
unallowed losses that apply to that
activity. You may fill out a second Form
8582, Passive Activity Loss Limitations,
and the other forms or schedules on
which your passive activities are
reported, to determine your passive
activity loss allowed for the AMT, but do
not file the second set of forms and
schedules with your tax return.
Example. You are a partner in a
partnership and the Schedule K-1
(Form 1065) you received shows the
following.
• A passive activity loss of $4,125,
• A depreciation adjustment of $500 on
post-1986 property, and
• An adjustment of $225 on the
disposition of property.
Because the two adjustments above
are from the passive activity and are
not allowed for the AMT, you must first
reduce the passive activity loss by
those amounts. The result is a passive
activity loss for the AMT of $3,400. You
then enter this amount on the AMT
Form 8582 and refigure the allowable
passive activity loss for the AMT.
The amount of any AMT passive
TIP activity loss that is not
deductible and is carried
forward is likely to differ from the
regular tax amount, if any. Therefore,
keep adequate records for both the
AMT and regular tax.
Enter the difference between the
amount that would be reported for the
activity on Schedule C, C-EZ, E, or F or
Form 4835, Farm Rental Income and
Expenses, for the AMT and the regular
tax amount. If (a) the AMT loss is more
than the regular tax loss, (b) the AMT
gain is less than the regular tax gain, or
(c) you have an AMT loss and a regular
tax gain, enter the adjustment as a
negative amount.
Enter any adjustment for amounts
reported on Form 8949, Schedule D,
Form 4684, or Form 4797 for the
activity on line 17 instead of line 19.
See the instructions for line 17.

Publicly Traded Partnership
(PTP)
If you had a loss from a PTP, refigure
the loss using any AMT adjustments
and preferences and any AMT prior
year unallowed loss.

Tax Shelter Passive Farm
Activities
Refigure any gain or loss from a tax
shelter passive farm activity taking into
account all AMT adjustments and
preferences and any AMT prior year

unallowed losses. If the amount is a
gain, include it on the AMT Form 8582.
If the amount is a loss, do not include it
on the AMT Form 8582. Carry the loss
forward to 2012 to see if you have a
gain or loss from tax shelter passive
farm activities for 2012.

Insolvency
If at the end of the tax year your
liabilities exceed the fair market value
of your assets, increase your passive
activity loss allowed by that excess (but
not by more than your total loss). See
section 58(c)(1).

Line 20—Loss Limitations
For passive activities, see the line 19
instructions instead. For tax shelter
farm activities (that are not passive),
see the line 27 instructions.
Refigure your gains and losses from
activities for which you are not at risk
and basis limitations applicable to
partnerships and S corporations by
taking into account all AMT adjustments
and preferences that apply. See
sections 59(h), 465, 704(d), and
1366(d).
Enter the difference between the
amount that would be reported for the
activity on Schedule C, C-EZ, E, or F or
Form 4835 for the AMT and the regular
tax amount. If (a) the AMT loss is more
than the regular tax loss, (b) the AMT
gain is less than the regular tax gain, or
(c) you have an AMT loss and a regular
tax gain, enter the adjustment as a
negative amount.
The AMT amount of any gain or loss
from activities for which you are not at
risk is likely to differ from the regular tax
amount. Your AMT basis in
partnerships and S corporations is also
likely to differ from your regular tax
basis. Therefore, keep adequate
records for both the AMT and regular
tax.
Enter any adjustment for amounts
reported on Form 8949, Schedule D,
Form 4684, or Form 4797 for the
activity on line 17 instead of line 20.

Line 21—Circulation Costs
Do not make this adjustment for
costs for which you elected the
CAUTION optional 3-year write-off for the
regular tax.
Circulation costs (expenditures to
establish, maintain, or increase the
circulation of a newspaper, magazine,
or other periodical) deducted in full for
the regular tax in the year they were
paid or incurred must be capitalized
and amortized over 3 years for the
AMT. Enter the difference between the
regular tax and AMT deduction. If the
AMT deduction is greater, enter the
difference as a negative amount.
If you had a loss on property for
which circulation costs have not been
fully amortized for the AMT, your AMT

!

-6-

deduction is the smaller of (a) the
amount of the loss allowable for the
costs had they remained capitalized or
(b) the remaining costs to be amortized
for the AMT.

Line 22—Long-Term
Contracts
For the AMT, you generally must use
the percentage-of-completion method
described in section 460(b) to
determine your income from any
long-term contract (defined in section
460(f)). However, this rule does not
apply to any home construction contract
(as defined in section 460(e)(6)). For
contracts excepted from the
percentage-of-completion method for
the regular tax by section 460(e)(1),
you must use the simplified procedures
for allocating costs outlined in section
460(b)(3) to determine the percentage
of completion.
Enter the difference between the
AMT and regular tax income. If the
AMT income is smaller, enter the
difference as a negative amount.
Note. If you are required to use the
percentage-of-completion method for
either the regular tax or the AMT, you
may owe or be entitled to a refund of
interest for the tax year the contract is
completed or adjusted. For details, see
Form 8697, Interest Computation Under
the Look-Back Method for Completed
Long-Term Contracts.

Line 23—Mining Costs
Do not make this adjustment for
costs for which you elected the
CAUTION optional 10-year write-off for the
regular tax.
Mining exploration and development
costs deducted in full for the regular tax
in the tax year they were paid or
incurred must be capitalized and
amortized over 10 years for the AMT.
Enter the difference between the
regular tax and AMT deduction. If the
AMT deduction is greater, enter the
difference as a negative amount.
If you had a loss on property for
which mining costs have not been fully
amortized for the AMT, your AMT
deduction is the smaller of (a) the loss
allowable for the costs had they
remained capitalized or (b) the
remaining costs to be amortized for the
AMT.

!

Line 24—Research and
Experimental Costs
Do not make this adjustment for
costs paid or incurred in
CAUTION connection with an activity in
which you materially participated under
the passive activity rules or for costs for
which you elected the optional 10-year
write-off for the regular tax.
Research and experimental costs
deducted in full for the regular tax in the

!

Instructions for Form 6251 (2011)

tax year they were paid or incurred
must be capitalized and amortized over
10 years for the AMT. Enter the
difference between the regular tax and
AMT deduction. If the AMT deduction is
greater, enter the difference as a
negative amount.
If you had a loss on property for
which research and experimental costs
have not been fully amortized for the
AMT, your AMT deduction is the
smaller of (a) the loss allowable for the
costs had they remained capitalized or
(b) the remaining costs to be amortized
for the AMT.

Line 25—Installment Sales
The installment method does not apply
for the AMT to any nondealer
disposition of property after August 16,
1986, but before January 1, 1987, if an
installment obligation to which the
proportionate disallowance rule applied
arose from the disposition. Enter the
amount of installment sale income
reported for the regular tax as a
negative amount on line 25.

Line 26—Intangible Drilling
Costs (IDCs)
Do not make this adjustment for
costs for which you elected the
CAUTION optional 60-month write-off for
the regular tax.
IDCs from oil, gas, and geothermal
wells are a preference to the extent that
the excess IDCs exceed 65% of the net
income from the wells. Figure the
preference for all oil and gas properties
separately from the preference for all
geothermal properties.
Excess IDCs. Figure excess IDCs as
follows.
Step 1. Determine the amount of
your IDCs allowed for the regular tax
under section 263(c), but do not include
any section 263(c) deduction for
nonproductive wells.
Step 2. Subtract the amount that
would have been allowed had you
amortized these IDCs over a
120-month period starting with the
month the well was placed in
production. If you prefer not to use the
120-month period, you can elect to use
any method that is permissible in
determining cost depletion.
Net income. Determine net income by
reducing the gross income that you
received or accrued during the tax year
from all oil, gas, and geothermal wells
by the deductions allocable to those
wells (reduced by the excess IDCs).
When refiguring net income, use only
income and deductions allowed for the
AMT.
Exception. The preference for IDCs
from oil and gas wells does not apply to
taxpayers who are independent
producers (that is, not integrated oil
companies as defined in section

!

Instructions for Form 6251 (2011)

291(b)(4)). However, this benefit may
be limited. First, figure the IDC
preference as if this exception did not
apply. Then, for purposes of this
exception, complete Form 6251 through
line 27, including the IDC preference
and treating line 11 as if it were zero,
and combine lines 1 through 27. If the
amount of the IDC preference exceeds
40% of the total of lines 1 through 27
(figured as described in the preceding
sentence), enter the excess on line 26
(your benefit from this exception is
limited). Otherwise, do not enter an
amount on line 26 (your benefit from
this exception is not limited).

Line 27—Other Adjustments
Enter on line 27 the total of any other
adjustments that apply to you, including
the following.

Depreciation Figured Using
Pre-1987 Rules
This preference generally only applies
to property placed in service after 1987,
but depreciated using pre-1987 rules
due to transitional provisions of the Tax
Reform Act of 1986.
For the AMT, you must use the
straight line method to figure
depreciation on real property for which
accelerated depreciation was
determined using pre-1987 rules. Use a
recovery period of 19 years for 19-year
real property and 15 years for
low-income housing. For leased
personal property other than recovery
property, enter the amount by which
your regular tax depreciation using the
pre-1987 rules exceeds the
depreciation allowable using the
straight line method. For leased 10-year
recovery property and leased 15-year
public utility property, enter the amount
by which your regular tax depreciation
exceeds the depreciation allowable
using the straight line method with a
half-year convention, no salvage value,
and a recovery period of 15 years (22
years for 15-year public utility property).
Figure the excess of the regular tax
depreciation over the AMT depreciation
separately for each property and
include on line 27 only positive
amounts.

Patron’s Adjustment
Distributions you received from a
cooperative may be includible in
income. Unless the distributions are
nontaxable, include on line 27 the total
AMT patronage dividend adjustment
reported to you by the cooperative,
such as on Form 1099-PATR.

Pollution Control Facilities
The section 169 election to amortize
the basis of a certified pollution control
facility over a 60-month or 84-month
period is not available for the AMT. For
facilities placed in service before 1999,
figure the AMT deduction using ADS.
For facilities placed in service after

-7-

1998, figure the AMT deduction under
MACRS using the straight line method.
Enter the difference between the
regular tax and AMT deduction. If the
AMT amount is greater, enter the
difference as a negative amount.

Tax Shelter Farm Activities
Figure this adjustment only if you have
a gain or loss from a tax shelter farm
activity (as defined in section 58(a)(2))
that is not a passive activity. If the
activity is passive, you must include it
with your other passive activities on line
19.
Refigure all gains and losses you
reported for the regular tax from tax
shelter farm activities by taking into
account any AMT adjustments and
preferences. Determine your tax shelter
farm activity gain or loss for the AMT
using the same rules you used for the
regular tax with the following
modifications.
• No refigured loss is allowed, except
to the extent you are insolvent (see
section 58(c)(1)).
• Do not use a refigured loss in the
current tax year to offset gains from
other tax shelter farm activities. Instead,
suspend any refigured loss and carry it
forward indefinitely until (a) you have a
gain in a subsequent tax year from that
same activity or (b) you dispose of the
activity.
Enter the difference between the
amount that would be reported for the
activity on Schedule E or F or Form
4835 for the AMT and the regular tax
amount. If (a) the AMT loss is more
than the regular tax loss, (b) the AMT
gain is less than the regular tax gain, or
(c) you have an AMT loss and a regular
tax gain, enter the adjustment as a
negative amount.
Enter any adjustment for amounts
reported on Form 8949, Schedule D,
Form 4684, or Form 4797 for the
activity on line 17 instead of line 27.

Charitable Contributions of
Certain Property
If you made a charitable contribution of
property to which section 170(e) applies
and you had a different basis for AMT
purposes, you may have to make an
adjustment. See section 170(e) for
details.

Alcohol and Cellulosic Biofuel
Fuels Credit and Biodiesel and
Renewable Diesel Fuels Credit
If your taxable income includes an
amount from the alcohol and cellulosic
biofuel fuels credit or the biodiesel and
renewable diesel fuels credit under
section 87, include that amount as a
negative amount on line 27.

Related Adjustments
If you have an entry on line 8 because
you deducted investment interest
allocable to an interest in a trade or
business, or on line 9, 13, 14, or 16

through 26, or you have any amount
included on line 27 from pre-1987
depreciation, patron’s adjustment,
pollution control facilities, or tax shelter
farm activities, you may have to refigure
any item of income or deduction based
on a limit of income other than AGI or
modified AGI.
Affected items include the following.

• Section 179 expense deduction

(Form 4562, Depreciation and
Amortization, line 12).
• Expenses for business or rental use
of your home.
• Conservation expenses (Schedule F,
line 12).
• Taxable IRA distributions (Form
1040, line 15b, or Form 1040NR, line
16b), if prior year IRA deductions were
different for the AMT and the regular
tax.
• Self-employed health insurance
deduction (Form 1040, line 29, or Form
1040NR, line 29).
• Self-employed SEP, SIMPLE, and
qualified plans deduction (Form 1040,
line 28, or Form 1040NR, line 28).
• IRA deduction (Form 1040, line 32,
or Form 1040NR, line 32), affected by
the earned income limitation of section
219(b)(1)(B).
Figure the difference between the
AMT and regular tax amount for each
item. Combine the amounts for all your
related adjustments and include the
total on line 27. Keep a copy of all
computations for your records,
including any AMT carryover and basis
amounts.

Exemption Worksheet—
Line 29

Do not include on line 27 any
adjustment for an item you
CAUTION refigured on another line of this
form (for example, line 9).

!

Example. On your Schedule C
(Form 1040) you have a net profit of
$9,000 before figuring your section 179
deduction. You do not report any other
business income on your return. During
the year, you purchased an asset for
$10,000 for which you elect to take the
section 179 deduction. You also have
an AMT depreciation adjustment of
$700 for other assets depreciated on
your Schedule C.
Your section 179 deduction for the
regular tax is limited to your net profit
(before any section 179 deduction) of
$9,000. The $1,000 excess is a section
179 deduction carryforward for the
regular tax.
For the AMT, your net profit is
$9,700, and you are allowed a section
179 deduction of $9,700 for the AMT.
You have a section 179 deduction
carryforward of $300 for the AMT.
You include a $700 negative
adjustment on line 27 because your
section 179 deduction for the AMT is
$700 greater than your allowable
regular tax deduction. In the following
year, when you use the $1,000 regular
tax carryforward, you will have a $700
positive related adjustment for the AMT
because your AMT carryforward is only
$300.

Keep for Your Records

Note. If Form 6251, line 28, is equal to or more than: $306,300 if single or head of household, $447,800
if married filing jointly or qualifying widow(er), or $223,900 if married filing separately, your exemption is
zero. Do not complete this worksheet; instead, enter the amount from Form 6251, line 28, on line 30 and
go to line 31.

1. Enter: $48,450 if single or head of household; $74,450 if married
filing jointly or qualifying widow(er); $37,225 if married filing
separately . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2. Enter your alternative minimum taxable income
(AMTI) from Form 6251, line 28 . . . . . . . . . . . 2.
3. Enter: $112,500 if single or head of household;
$150,000 if married filing jointly or qualifying
widow(er); $75,000 if married filing separately
3.
4. Subtract line 3 from line 2. If zero or less, enter
-0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.
5. Multiply line 4 by 25% (.25) . . . . . . . . . . . . . . . . . . . . . . . . . .
6. Subtract line 5 from line 1. If zero or less, enter -0-. If any of the
three conditions under Certain Children Under Age 24 apply to
you, complete lines 7 through 10. Otherwise, stop here and
enter this amount on Form 6251, line 29, and go to Form 6251,
line 30 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7. Minimum exemption amount for certain children under age 24 . .
8. Enter your earned income, if any (see instructions) . . . . . . . . .
9. Add lines 7 and 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10. Enter the smaller of line 6 or line 9 here and on Form 6251, line
29, and go to Form 6251, line 30 . . . . . . . . . . . . . . . . . . . . . .

..

1.

..

5.

©
..
..
..

6.
7.
8.
9.

© 10.

-8-

$6,800

Line 28—Alternative
Minimum Taxable Income
If your filing status is married filing
separately and line 28 is more than
$223,900, you must include an
additional amount on line 28. If line 28
is $372,800 or more, include an
additional $37,225. Otherwise, include
25% of the excess of the amount on
line 28 over $223,900. For example, if
the amount on line 28 is $243,900,
enter $248,900 instead — the additional
$5,000 is 25% of $20,000 ($243,900
minus $223,900).

Special Rule for Holders of a
Residual Interest in a REMIC
If you held a residual interest in a real
estate mortgage investment conduit
(REMIC) in 2011, the amount you enter
on line 28 may not be less than the
amount on Schedule E, line 38, column
(c). If the amount in column (c) is larger
than the amount you would otherwise
enter on line 28, enter the amount from
column (c) instead and enter “Sch. Q”
on the dotted line next to line 28.
If your filing status is married filing
separately, be sure to include the
additional amount that must be added
to line 28 (as explained above) before
you compare line 28 with the amount
on Schedule E, line 38, column (c).

Part II—Alternative
Minimum Tax
Line 29—Exemption Amount
If line 28 is more than the amount
shown for your filing status in the
middle column of the chart on line 29,
see the Exemption Worksheet to figure
the amount to enter on line 29.

Certain Children Under Age 24
Your exemption amount is limited to the
amount of your earned income plus
$6,800 if condition 1, 2, or 3 below
applies to you.
1. You were under age 18 at the
end of 2011.
2. You were age 18 at the end of
2011 and did not have earned income
that was more than half of your support.
3. You were a full-time student over
age 18 and under age 24 at the end of
2011 and did not have earned income
that was more than half of your support.
If condition 1, 2, or 3 applies to you,
complete the Exemption Worksheet,
including lines 7 through 10, to figure
the amount to enter on Form 6251, line
29.
Exception. If you filed a joint return for
2011 or neither of your parents was
alive at the end of 2011, do not
complete lines 7 through 10 of the
Exemption Worksheet. However, you
still must complete lines 1 through 6 of
the worksheet if Form 6251, line 28, is
more than the amount shown for your
Instructions for Form 6251 (2011)

filing status in the middle column of the
chart on Form 6251, line 29.
Certain January 1 birthdays. If you
were born on January 1, 1994, you are
considered to be 18 at the end of 2011.
Your exemption amount is limited only if
you did not have earned income that
was more than half of your support.
If you were born on January 1, 1993,
you are considered to be 19 at the end
of 2011. Your exemption amount is
limited only if you were a full-time
student who did not have earned
income that was more than half of your
support.
If you were born on January 1, 1988,
you are considered to be 24 at the end
of 2011. Your exemption amount is not
limited.
Line 8 of the worksheet. Earned
income includes wages, tips, and other
amounts received for personal services
performed. If you are a sole proprietor
or a partner in a trade or business in
which both personal services and
capital are material income-producing
factors, earned income also includes a
reasonable allowance for compensation
for personal services, but not more than
30% of your share of the net profits
from that trade or business (after
subtracting the deduction for part of
your self-employment tax). However,
the 30% limit does not apply if there are
no net profits from the trade or
business. If capital is not an
income-producing factor and your
personal services produced the
business income, all of your gross
income from the trade or business is
considered earned income.

Line 31
If you claimed the foreign earned
income exclusion, housing exclusion, or
housing deduction on Form 2555 or

Form 2555-EZ, you must use the
worksheet below to figure the amount
to enter on line 31.
Form 1040NR. If you are filing Form
1040NR and you reported capital gain
distributions directly on Form 1040NR,
line 14; you reported qualified dividends
on Form 1040NR, line 10b; or you had
a gain on both lines 15 and 16 of
Schedule D (Form 1040) (as refigured
for the AMT, if necessary), complete
Part III of Form 6251 and enter the
amount from line 54 on line 31. All
other Form 1040NR filers, do not
complete Part III. Instead, if Form 6251,
line 30, is $175,000 or less ($87,500 or
less if you checked filing status box 3,
4, or 5 on Form 1040NR), figure the
amount to enter on line 31 by
multiplying line 30 by 26% (.26).
Otherwise, figure the amount to enter
on line 31 by multiplying line 30 by 28%
(.28) and subtracting $3,500 ($1,750 if
you checked filing status box 3, 4, or 5)
from the result.

Line 32—Alternative
Minimum Tax Foreign Tax
Credit (AMTFTC)
To see if you need to figure your
TIP AMTFTC, fill in Form 6251, line
34, as instructed. (You will first
need to figure your foreign tax credit for
the regular tax and complete Form
1040, line 47, or Form 1040NR, line
45.) If the amount on line 34 is greater
than or equal to the amount on line 31,
you do not owe the AMT. Enter -0- on
line 35 and see Who Must File, earlier,
to find out if you must attach Form 6251
to your return. However, even if you do
not owe the AMT, you may need to
complete line 32 to see if you have an
AMTFTC carryback or carryforward to
other tax years.

Foreign Earned Income Tax Worksheet—Line 31
Before you begin:

u

If you made an election to claim the
foreign tax credit on Form 1040 (or
Form 1040NR) without filing Form
1116, your AMTFTC is the same as the
foreign tax credit on Form 1040, line 47
(or Form 1040NR, line 45). Enter that
amount on Form 6251, line 32.
Otherwise, your AMTFTC is your
foreign tax credit refigured as follows.
Step 1. Use a separate AMT Form
1116 for each separate category of
income. Write “AMT” and specify the
category of income in the top margin of
each Form 1116.
When applying the separate
categories of income, use the
applicable AMT rate instead of the
regular tax rate to determine if any
income is “high-taxed.”
Step 2. If you previously made or are
making the simplified limitation election,
skip Part I and enter on the AMT Form
1116, line 17, the same amount you
entered on that line for the regular tax.
If you did not complete Form 1116 for
the regular tax and you previously
made or are making the simplified
limitation election, complete Part I and
lines 15 through 17 of the AMT Form
1116 using regular tax amounts.
If the election does not apply,
complete Part I using only income and
deductions that are allowed for the
AMT and attributable to sources outside
the United States. If you have any
foreign source qualified dividends or
foreign source capital gains (including
any foreign source capital gain
distributions) or losses, use the
instructions under Step 3 to determine
whether you must make adjustments to
those amounts before you include the
amounts on line 1a or line 5 of the AMT
Form 1116.

Keep for Your Records

If Form 6251, line 30, is zero, do not complete this worksheet.

1. Enter the amount from Form 6251, line 30 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2. Enter the amount from your (and your spouse’s if filing jointly) Form 2555, lines 45 and 50, or Form 2555-EZ,
line 18 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3. Add lines 1 and 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4. Tax on the amount on line 3.
• If you reported capital gain distributions directly on Form 1040, line 13; or you reported qualified dividends
on Form 1040, line 9b; or you had a gain on both lines 15 and 16 of Schedule D (Form 1040), enter the
amount from line 3 of this worksheet on Form 6251, line 36. Complete the rest of Part III of Form 6251.
However, before completing Part III, see Forms 2555 and 2555-EZ, later, to see if you must complete Part III
with certain modifications. Then enter the amount from Form 6251, line 54, here.
• All others: If line 3 is $175,000 or less ($87,500 or less if married filing separately), multiply line 3 by 26%
(.26). Otherwise, multiply line 3 by 28% (.28) and subtract $3,500 ($1,750 if married filing separately) from the
result.
5. Tax on the amount on line 2. If line 2 is $175,000 or less ($87,500 or less if married filing separately), multiply line
2 by 26% (.26). Otherwise, multiply line 2 by 28% (.28) and subtract $3,500 ($1,750 if married filing separately)
from the result. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6. Subtract line 5 from line 4. Enter the result here and on Form 6251, line 31. . . . . . . . . . . . . . . . . . . . . . . . . . . . .

}

Instructions for Form 6251 (2011)

-9-

1.
2.
3.

4.

5.
6.

Step 3. Follow the instructions below,
if applicable, to determine the amount
of foreign source qualified dividends,
capital gain distributions, and other
capital gains and losses to include on
line 1a and line 5 of the AMT Form
1116.
Foreign qualified dividends. You
must adjust your foreign source
qualified dividends before you include
those amounts on line 1a of the AMT
Form 1116 if:
• Line 52 of Form 6251 is smaller than
line 53, and
• Line 41 of Form 6251 is greater than
zero.
But you do not need to make any
adjustments if:
• You qualify for the adjustment
exception under Qualified Dividends
and Capital Gain Tax Worksheet
(Individuals) or Adjustments to foreign
qualified dividends under Schedule D
Filers in the Form 1116 instructions,
and
• Line 41 of Form 6251 is not more
than $175,000 ($87,500 if married filing
separately).
Note. Use your capital gains and
losses as refigured for the AMT to
determine whether your total amounts
are less than the $20,000 threshold
under the adjustment exception.
To adjust your foreign source
qualified dividends, multiply your
foreign source qualified dividends in
each separate category by 0.5357 if the
foreign source qualified dividends are
taxed at a rate of 15%. Include the
results on line 1a of the applicable AMT
Form 1116.
You adjust your foreign source
qualified dividends taxed at the 0% rate
by not including them on line 1a.
Amounts taxed at the 0% rate are on
line 11 of the Qualified Dividends and
Capital Gain Tax Worksheet in the
Form 1040 instructions, line 9 of the
Qualified Dividends and Capital Gain
Tax Worksheet in the Form 1040NR
instructions, or line 20 of the Schedule
D Tax Worksheet.
Do not adjust the amount of any
foreign source qualified
CAUTION dividends you elected to include
on line 4g of AMT Form 4952.
Individuals with capital gain
distributions only. If you have no
capital gains or losses other than
capital gain distributions from box 2a of
Form(s) 1099-DIV or substitute
statement(s), you must adjust your
foreign source capital gain distributions
if you are required to adjust your
foreign source qualified dividends under
the rules just described or you would be
required to adjust your foreign source
qualified dividends if you had any.
To adjust your foreign source capital
gain distributions, multiply your foreign
source capital gain distributions in each
separate category by 0.5357 if the

!

foreign source capital gain distributions
are taxed at a rate of 15%. Include the
results on line 1a of the applicable AMT
Form 1116.
You adjust your foreign source
capital gain distributions taxed at the
0% rate by not including them on line
1a. Amounts taxed at the 0% rate are
on line 11 of the Qualified Dividends
and Capital Gain Tax Worksheet in the
Form 1040 instructions, line 9 of the
Qualified Dividends and Capital Gain
Tax Worksheet in the Form 1040NR
instructions, or line 20 of the Schedule
D Tax Worksheet.
Do not adjust the amount of any
foreign source capital gain
CAUTION distributions you elected to
include on line 4g of AMT Form 4952.

!

Individuals with other capital
gains or losses. If any capital gain or
loss is different for the AMT, use
amounts as refigured for the AMT to
complete this step. Use Worksheet A in
the instructions for Form 1116 to
determine the adjustments you must
make to your foreign source capital
gains or losses (as refigured for the
AMT) if you have foreign source capital
gains or losses (as refigured for the
AMT) in no more than two separate
categories and any of the following
apply.
• You are not required to make
adjustments to your foreign source
qualified dividends under the rules
described earlier (or you would not be
required to make those adjustments if
you had foreign source qualified
dividends).
• Line 15 or 16 of the AMT Schedule D
(Form 1040) is zero or a loss.
• On the AMT Qualified Dividends and
Capital Gain Tax Worksheet in the
Form 1040 instructions, (a) line 3 of
that worksheet minus the amount on
Form 4952, line 4e, that you elected to
include on Form 4952, line 4g, is zero
or less, (b) line 7 of that worksheet is
zero, or (c) line 17 of that worksheet is
equal to or greater than line 18.
• On the AMT Qualified Dividends and
Capital Gain Tax Worksheet in the
Form 1040NR instructions, (a) line 3 of
that worksheet is zero, (b) line 5 of that
worksheet is zero, or (c) line 15 of that
worksheet is equal to or greater than
line 16.
• On the AMT Schedule D Tax
Worksheet (Form 1040), (a) line 18 is
zero, (b) line 9 is zero or less, or (c) line
35 is equal to or greater than line 36.
Use Worksheet B if you:

• Cannot use Worksheet A,
• Have foreign source capital gains

and losses in no more than two
separate categories,
• Did not have any item of
unrecaptured section 1250 gain or 28%
rate gain or loss for the AMT, and
• Do not have any capital gains taxed
at a rate of 0%.

-10-

Instructions for Worksheets A and
B. When you complete Worksheet A
or Worksheet B, use foreign source
capital gains and losses, as refigured
for the AMT if necessary, and do not
use any foreign source capital gains
you elected to include on line 4g of
AMT Form 4952. If you are required to
complete a Schedule D for the AMT,
use line 16 of that AMT Schedule D to
complete line 3 of Worksheet A or line
4 of the Line 2 Worksheet for
Worksheet B. Use 0.5357 instead of
0.4286 to complete lines 11, 13, and 15
of Worksheet B and to complete lines
8, 11, and 17 of the Line 15 Worksheet
for Worksheet B.
If you do not qualify to use
Worksheet A or Worksheet B, use the
instructions for Capital Gains and
Losses in Pub. 514 to determine the
adjustments you make.
Step 4. Complete Part II and lines 9
through 14 of the AMT Form 1116. Use
your AMTFTC carryover, if any, on
line 10.
Step 5. If the simplified limitation
election does not apply, complete lines
15 through 17 of the AMT Form 1116.
Step 6. If you did not complete Part III
of Form 6251, enter the amount from
line 28 of Form 6251 on line 18 of the
AMT Form 1116 and go to Step 7. If
you completed Part III of Form 6251,
you must complete, for the AMT, the
Worksheet for Line 18 in the Form 1116
instructions to determine the amount to
enter on line 18 of the AMT Form 1116
if:
• Line 52 of Form 6251 is smaller than
line 53, and
• Line 41 of Form 6251 is greater than
zero.
But you do not need to complete the
Worksheet for Line 18 if:
• You qualify for the adjustment
exception under Qualified Dividends
and Capital Gain Tax Worksheet
(Individuals) or Adjustments to foreign
qualified dividends under Schedule D
Filers in the Form 1116 instructions,
and
• Line 41 of Form 6251 is not more
than $175,000 ($87,500 if married filing
separately).
Note. Use your capital gains and
losses as refigured for the AMT to
determine whether your total amounts
are less than the $20,000 threshold
under the adjustment exception.
If you do not need to complete the
Worksheet for Line 18, enter the
amount from line 28 of Form 6251 on
line 18 of the AMT Form 1116.
Instructions for AMT Worksheet
for Line 18. Follow these steps to
complete, for the AMT, the Worksheet
for Line 18 in the Form 1116
instructions.
1. Enter the amount from Form
6251, line 28, on line 1 of the
worksheet.
Instructions for Form 6251 (2011)

2. Skip lines 2 and 3 of the
worksheet.
3. Enter the amount from Form
6251, line 50, on line 4 of the
worksheet.
4. Multiply line 4 of the worksheet
by 0.1071 (instead of 0.2857). Enter the
result on line 5 of the worksheet.
5. Enter the amount from Form
6251, line 48, on line 6 of the
worksheet.
6. Multiply line 6 of the worksheet
by 0.4643 (instead of 0.5714). Enter the
result on line 7 of the worksheet.
7. Enter the amount from Form
6251, line 47, on line 8 of the
worksheet.
8. Complete lines 9 and 10 of the
worksheet as instructed on the
worksheet.

to figure your tax on Form 1040, line 44
(or Form 1040NR, line 42), you must
refigure that tax (including any tax from
Form 8814) without using Schedule J
before completing this line. This is only
for Form 6251; do not change the
amount on Form 1040, line 44 (or Form
1040NR, line 42).

Step 7. Enter the amount from Form
6251, line 31, on the AMT Form 1116,
line 20. Complete lines 19, 21, and 22
of the AMT Form 1116.

Part III—Tax
Computation Using
Maximum Capital Gains
Rates

Step 8. Complete Part IV of the first
AMT Form 1116 only.
Enter on Form 6251, line 32, the
amount from line 30 of the first AMT
Form 1116.
Attach to your tax return, after Form
6251, all AMT Forms 1116 you used to
figure your AMTFTC. But do not attach
AMT Forms 1116 if your AMTFTC is
the same as your regular tax foreign tax
credit.

AMTFTC Carryback and
Carryforward
If your AMTFTC is limited, the unused
amount generally may be carried back
or forward according to section 904(c).
However, if you made the election to
claim the foreign tax credit on Form
1040 (or Form 1040NR) without filing
Form 1116, any unused AMTFTC
cannot be carried back or forward. In
addition, no unused AMTFTC from
another year can be used in any year
for which the election has been made.

Simplified Limitation Election
You may elect to use a simplified
section 904 limitation to figure your
AMTFTC. If you do, use your regular
tax income for Form 1116, Part I,
instead of refiguring your foreign source
income for the AMT, as described
earlier. You must make the election for
the first tax year after 1997 for which
you claim an AMTFTC. If you do not
make the election for that year, you
may not make it for a later year. Once
made, the election applies to all later
tax years and may be revoked only with
IRS consent.

Line 34
If you used Schedule J, Income
Averaging for Farmers and Fishermen,
Instructions for Form 6251 (2011)

Form 1040NR. If you are filing Form
1040NR, enter the tax from Form
1040NR, line 42 (minus any tax from
Form 4972, Tax on Lump-Sum
Distributions, and any foreign tax credit
from Form 1040NR, line 45). If you
used Schedule J to figure your tax, the
amount on line 42 of Form 1040NR
must be refigured without using
Schedule J (see preceding paragraph).

Lines 37, 38, and 39
You generally can fill out lines 37, 38,
and 39 using the amounts from the
Qualified Dividends and Capital Gain
Tax Worksheet or the Schedule D Tax
Worksheet, whichever applies, and
Schedule D (Form 1040), if you
completed Schedule D. But do not use
those amounts if any of the following
statements apply.
1. The gain or loss from any
transaction reported on Form 8949 or
Schedule D is different for the AMT (for
example, because of a different basis
for the AMT due to depreciation
adjustments, an incentive stock option
adjustment, or a different AMT capital
loss carryover from 2010).
2. You did not complete either the
Qualified Dividends and Capital Gain
Tax Worksheet or the Schedule D Tax
Worksheet because Form 1040, line 43
(or Form 1040NR, line 41), is zero.
3. You received a Schedule K-1
(Form 1041) that shows an amount in
box 12 with code B, C, D, E, or F. If this
applies, see Beneficiaries of estates or
trusts. Then read the following
instructions.
If (1) applies, complete an AMT
Form 8949 by refiguring, for example,
your basis for the AMT. Next, if (1) or
(3) applies, complete lines 1 through 20
of an AMT Schedule D. Then, if (1), (2),
or (3) applies, complete lines 2 through
6 of an AMT Qualified Dividends and
Capital Gain Tax Worksheet or lines 2
through 13 of an AMT Schedule D Tax
Worksheet, whichever applies. (See
line 20 of your AMT Schedule D, if you
completed one, to determine which

-11-

worksheet applies.) Complete line 5 of
the AMT Qualified Dividends and
Capital Gain Tax Worksheet or lines 3
and 4 of the AMT Schedule D Tax
Worksheet, whichever applies, using
your AMT Form 4952. Use amounts
from Schedule D or the AMT Schedule
D, whichever applies, and either the
AMT Qualified Dividends and Capital
Gain Tax Worksheet or the AMT
Schedule D Tax Worksheet, whichever
applies, to complete lines 37, 38, and
39 of Form 6251. Keep the AMT Form
8949, AMT Schedule D, and the
applicable worksheet for your records,
but do not attach any of them to your
tax return.
Note. Do not decrease your section
1202 exclusion by the amount, if any,
on line 13.
Forms 2555 and 2555-EZ. If you are
filing either of these forms and you
have a capital gain excess, you must
complete Part III of Form 6251 with
certain modifications. To see if you
have a capital gain excess, subtract
Form 6251, line 30, from line 6 of your
AMT Qualified Dividends and Capital
Gain Tax Worksheet (or line 10 of your
AMT Schedule D Tax Worksheet). If the
result is greater than zero, that amount
is your capital gain excess.
If you have capital gain excess,
figure the amounts to enter on lines 37,
38, and 39 of Form 6251 using the
following modifications (only for
purposes of Part III of Form 6251).
1. Reduce the amount you would
otherwise enter on line 3 of your AMT
Qualified Dividends and Capital Gain
Tax Worksheet or line 9 of your AMT
Schedule D Tax Worksheet (but not
below zero) by your capital gain
excess.
2. Reduce the amount you would
otherwise enter on line 2 of your AMT
Qualified Dividends and Capital Gain
Tax Worksheet or line 6 of your AMT
Schedule D Tax Worksheet (but not
below zero) by any of your capital gain
excess not used in (1).
3. Reduce the amount on your AMT
Schedule D (Form 1040), line 18, (but
not below zero) by your capital gain
excess.
4. Include your capital gain excess
as a loss on line 16 of your AMT
Unrecaptured Section 1250 Gain
Worksheet in the Instructions for
Schedule D (Form 1040).
Beneficiaries of estates or trusts. If
you received a Schedule K-1 (Form
1041) that shows an adjustment in box
12, follow the instructions in the
following table.

IF the code in THEN include that
box 12 is...
adjustment in figuring
the amount on...
B

line 2 of an AMT Qualified
Dividends and Capital
Gain Tax Worksheet or
an AMT Schedule D Tax
Worksheet, whichever
applies.

C

line 5, column (h), of an
AMT Schedule D.

D

line 12, column (h), of an
AMT Schedule D.

E

line 11 of an AMT
Unrecaptured Section
1250 Gain Worksheet.

F

line 4 of an AMT 28%
Rate Gain Worksheet.

Form 1040NR. If you are filing Form
1040NR, enter on Form 6251, line 37,
the amount from line 4 of the Qualified
Dividends and Capital Gain Tax
Worksheet in the instructions for Form

1040NR, line 42, or the amount from
line 13 of the Schedule D Tax
Worksheet in the instructions for
Schedule D (Form 1040), whichever
applies (as refigured for the AMT, if
necessary).

Line 42
If you are filing Form 1040NR and Form
6251, line 41, is $175,000 or less
($87,500 or less if you checked filing
status box 3, 4, or 5), multiply line 41 by
26% (.26). Otherwise, multiply line 41
by 28% (.28) and subtract $3,500
($1,750 if you checked filing status box
3, 4, or 5) from the result.

Line 43
If you are filing Form 1040NR, enter
$34,500 ($69,000 if you checked filing
status box 6).

line 5 of the Qualified Dividends and
Capital Gain Tax Worksheet in the
instructions for Form 1040NR, line 42,
or the amount from line 14 of the
Schedule D Tax Worksheet in the
instructions for Schedule D (Form
1040), whichever applies (as figured for
the regular tax). If you did not complete
either worksheet for the regular tax,
enter -0-.

Line 53
If you are filing Form 1040NR and Form
6251, line 36, is $175,000 or less
($87,500 or less if you checked filing
status box 3, 4, or 5), multiply line 36 by
26% (.26). Otherwise, multiply line 36
by 28% (.28) and subtract $3,500
($1,750 if you checked filing status box
3, 4, or 5) from the result.

Line 44
If you are filing Form 1040NR, enter on
Form 6251, line 44, the amount from

-12-

Instructions for Form 6251 (2011)