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2021Instructions for Form 6251Department of the TreasuryInternal Revenue ServiceAlternative Minimum Tax—IndividualsSection references are to the Internal RevenueCode unless otherwise noted.General InstructionsFuture DevelopmentsFor the latest information aboutdevelopments related to Form 6251 andits instructions, such as legislationenacted after they were published, go toIRS.gov/Form6251.What's NewExemption amount. The exemptionamount on Form 6251, line 5, hasincreased to 73,600 ( 114,600 ifmarried filing jointly or qualifyingwidow(er); 57,300 if married filingseparately).Also, the amount used to determinethe phaseout of your exemption hasincreased to 523,600 ( 1,047,200 ifmarried filing jointly or qualifyingwidow(er)).AMT tax brackets. For 2021, the 26%tax rate applies to the first 199,900( 99,950 if married filing separately) oftaxable excess (the amount on line 6).This change is reflected on lines 7, 18,and 39.Who Must FileAttach Form 6251 to your return if any ofthe following statements are true.1. Form 6251, line 7, is greater thanline 10.2. You claim any general businesscredit, and either line 6 (in Part I) ofForm 3800 or line 25 of Form 3800 ismore than zero.3. You claim the qualified electricvehicle credit (Form 8834), the personaluse part of the alternative fuel vehiclerefueling property credit (Form 8911), orthe credit for prior year minimum tax(Form 8801).4. The total of Form 6251, lines 2cthrough 3, is negative and line 7 wouldbe greater than line 10 if you didn’t takeinto account lines 2c through 3.Purpose of FormUse Form 6251 to figure the amount, ifany, of your alternative minimum tax(AMT). The AMT is a separate tax thatDec 23, 2021is imposed in addition to your regulartax. It applies to taxpayers who havecertain types of income that receivefavorable treatment, or who qualify forcertain deductions, under the tax law.These tax benefits can significantlyreduce the regular tax of sometaxpayers with higher economicincomes. The AMT sets a limit on theamount these benefits can be used toreduce total tax.Also use Form 6251 to figure yourtentative minimum tax (Form 6251,line 9). You may need to know thatamount to figure the tax liability limit onthe credits listed under Who Must File,earlier.Figuring AMT AmountsFor the AMT, certain items of income,deductions, etc., receive different taxtreatment than for the regular tax.Therefore, you will need to figure itemsfor the AMT differently from how youfigured them for the regular tax. Theseinstructions will help you figure AMTitems by using the amount you figuredfor the regular tax and refiguring it forthe AMT. In some cases, it is easiest torefigure an item for AMT by completinga tax form or worksheet a second timeusing additional AMT instructions.These instructions refer to such a formor worksheet as an “AMT” version. Ifyou do complete an AMT version of aform or worksheet, don’t attach it to yourtax return unless instructed to do so. Forexample, you may have to attach anAMT Form 1116, Foreign Tax Credit, toyour return; see Line 8, later.As you figure some deductions andcredits for the AMT, carrybacks orcarryforwards to other tax years may bedifferent from what you figured for theregular tax. Examples are investmentinterest expense, a net operating loss, acapital loss, a passive activity loss, andthe foreign tax credit. Your at-risk limitsand basis amounts may also differ forthe AMT.RecordkeepingYou must keep records to support itemsreported on Form 6251 in case the IRShas questions about them. If the IRSexamines your tax return, you may beasked to explain the items reported.Cat. No. 64277PGood records will help you explain anyitem and arrive at the correct AMT.Keep records that show how youfigured income, deductions, etc., for theAMT. Also keep records of any itemsthat you used to figure the AMT thatdiffer from what you used to figure theregular tax. For example, you will needto separately figure and track certaincarrybacks, carryforwards, basisamounts, depreciation, and losslimitation amounts that differ betweenthe AMT and the regular tax.If you refigure an item for AMT bycompleting an AMT version of a form orworksheet, keep a copy of that AMTform or worksheet for your records.Partners and ShareholdersIf you are a partner in a partnership or ashareholder in an S corporation, seeSchedule K-1 and its instructions tofigure your adjustments or preferencesfrom the partnership or S corporation toinclude on Form 6251.Nonresident AliensIf you are a nonresident alien and youdisposed of U.S. real property interestsat a gain, you must make a specialcomputation. Fill in Form 6251 throughline 6. If your net gain from thedisposition of U.S. real propertyinterests and the amount on line 4 areboth greater than the tentative amountyou figured for line 6, replace theamount on line 6 with the smaller of thatnet gain or the amount on line 4. Alsoenter “RPI” on the dotted line next toline 6. Otherwise, don’t change line 6.Credit for Prior YearMinimum TaxSee Form 8801, Credit for Prior YearMinimum Tax—Individuals, Estates, andTrusts, if you paid AMT for 2020 or youhad a minimum tax credit carryforwardon your 2020 Form 8801. If you payAMT for 2021, you may be able to takea credit on Form 8801 for 2022.Optional Write-off forCertain ExpendituresThere is no AMT adjustment for thefollowing items if you elect for the
regular tax to deduct them ratably overthe period of time shown. Circulation expenditures—3 years(section 173). Research and experimentalexpenditures—10 years (section174(a)). Mining exploration and developmentcosts—10 years (sections 616(a) and617(a)). Intangible drilling costs—60 months(section 263(c)).For information on making theelection, see section 59(e) andRegulations section 1.59-1. Also seePub. 535, Business Expenses.Specific InstructionsIf you owe AMT, you may beTIP able to lower your total tax(regular tax plus AMT) byclaiming itemized deductions on Form1040 or Form 1040-SR, even if yourtotal itemized deductions are less thanthe standard deduction. This is becausethe standard deduction isn’t allowed forthe AMT and, if you claim the standarddeduction on Form 1040 or Form1040-SR, you can’t claim itemizeddeductions for the AMT.Part I—AlternativeMinimum Taxable Income(AMTI)To avoid duplication, anyadjustment or preference forCAUTION line 2m or 2n or for a tax shelterfarm activity on line 3 must not be takeninto account in figuring the amount toenter for any other adjustment orpreference.!Line 1If Form 1040 or 1040-SR, line 15, iszero and includes a write-in amount(such as a capital construction funddeduction for commercial fishermen),subtract the write-in amount and line 14of Form 1040 or 1040-SR from line 11 ofForm 1040 or 1040-SR before enteringthe result on line 1.Form 1040-NR. If you are filing Form1040-NR, enter the amount from Form1040-NR, line 15. If Form 1040-NR,line 15, is zero, subtract line 14 fromline 11 of Form 1040-NR and enter theresult. If less than zero, enter as anegative amount.Line 2a—TaxesEnter the amount of all taxes fromSchedule A (Form 1040), line 7, exceptany generation-skipping transfer taxeson income distributions.If you aren’t filing Schedule A (Form1040), then enter the standarddeduction amount that you reported onForm 1040 or 1040-SR, line 12a.Net qualified disaster loss. If youfiled Schedule A just to claim anincreased standard deduction on Form1040 or Form 1040-SR due to a lossyou suffered related to property in afederally declared disaster area, thenenter zero on line 2a and go to line 2b.You will include the amount of thestandard deduction (before it wasincreased by any net qualified disasterloss) on line 3.Form 1040-NR. If you are filing Form1040-NR, enter the amount of all taxesfrom Schedule A (Form 1040-NR),line 1b, plus any foreign income taxesyou are deducting on Schedule A(instead of claiming a credit on Form1116). Don’t include anygeneration-skipping transfer taxes onincome distributions.Line 2b—Refund of TaxesInclude any refund from Schedule 1(Form 1040), line 1, that is attributableto state or local income taxes. Alsoinclude any refunds received in 2021and included in income on Schedule 1(Form 1040), line 8z, that areattributable to state or local personalproperty taxes or general sales taxes,foreign income taxes, or state, local, orforeign real property taxes. Enter thetotal as a negative amount. If youinclude an amount from Schedule 1(Form 1040), line 8z, you must enter adescription and the amount next to theentry space for line 2b. For example, ifyou include a refund of real propertytaxes, enter “real property” and theamount next to the entry space.Line 2c—Investment InterestIf you filled out Form 4952, InvestmentInterest Expense Deduction, for yourregular tax, you will need to fill out asecond Form 4952 for the AMT asfollows.Step 1. Follow the Form 4952instructions for line 1, but, whencompleting line 1, also include anyinterest that would have beendeductible if tax-exempt interest onprivate activity bonds were includible ingross income.Step 2. Enter your AMT disallowedinvestment interest expense from 2020on line 2. Complete line 3.Step 3. When completing Part II,refigure the following amounts, taking-2-into account all adjustments andpreferences. Gross income from property held forinvestment. Net gain from the disposition ofproperty held for investment. Net capital gain from the dispositionof property held for investment. Investment expenses.Include on line 4a any tax-exemptinterest income from private activitybonds that must be included on Form6251, line 2g. If you have anyinvestment expenses that would havebeen deductible if the interest on thebonds were includible in gross incomefor the regular tax, you can use them toreduce the amount on line 4a or includethem on line 5.On line 4g, enter the smaller of:1. The amount from line 4g of yourregular tax Form 4952, or2. The total of lines 4b and 4e of thisAMT Form 4952.Step 4. Complete Part III.Enter on Form 6251, line 2c, thedifference between line 8 of your AMTForm 4952 and line 8 of your regular taxForm 4952. If your AMT expense isgreater, enter the difference as anegative amount.Investment interest expense thatisn’t an itemized deduction. If youdidn’t itemize deductions and you hadinvestment interest expense, don’t enteran amount on Form 6251, line 2c,unless you reported investment interestexpense on Schedule E (Form 1040),Supplemental Income and Loss. If youdid, follow the steps above forcompleting Form 4952. Allocate theinvestment interest expense allowed online 8 of the AMT Form 4952 in thesame way you did for the regular tax.Enter on Form 6251, line 2c, thedifference between the amount allowedon Schedule E for the regular tax andthe amount allowed on Schedule E forthe AMT.Line 2d—DepletionRefigure your depletion deduction forthe AMT. To do so, use only incomeand deductions allowed for the AMTwhen refiguring the limit based ontaxable income from the property undersection 613(a) and the limit based ontaxable income, with certainadjustments, under section 613A(d)(1).Also, your depletion deduction formines, wells, and other natural depositsunder section 611 is limited to theproperty's adjusted basis at the end ofthe year, as refigured for the AMT,Instructions for Form 6251 (2021)
unless you are an independentproducer or royalty owner claimingpercentage depletion for oil and gaswells under section 613A(c). Figure thislimit separately for each property. Whenrefiguring the property's adjusted basis,take into account any AMT adjustmentsyou made this year or in previous yearsthat affect basis (other than current yeardepletion).Enter the difference between theregular tax and AMT deduction. If theAMT deduction is more than the regulartax deduction, enter the difference as anegative amount.Line 2f—Alternative Tax NetOperating Loss Deduction(ATNOLD)The ATNOLD is the sum of thealternative tax net operating loss(ATNOL) carrybacks and carryforwardsto the tax year subject to the limitationexplained later. Figure your ATNOLD asfollows.Your ATNOL for a loss year is theexcess of the deductions allowed forfiguring AMTI (excluding the ATNOLD)over the income included in AMTI.Figure this excess with themodifications in section 172(d), takinginto account your AMT adjustments andpreferences (that is, the section 172(d)modifications must be separatelyfigured for the ATNOL). For example,the limitation of nonbusiness deductionsto the amount of nonbusiness incomemust be separately figured for theATNOL, using only nonbusiness incomeand deductions that are included inAMTI.Your ATNOLD may be limited. Tofigure the ATNOLD limitation, you mustfirst figure your AMTI without regard tothe ATNOLD. To do this, first figure atentative amount for line 2d by treatingline 2f as if it were zero. Next, figure atentative total of lines 1 through 3 usingthe tentative line 2d amount and treatingline 2f as if it were zero. This is yourAMTI figured without regard to theATNOLD. Your ATNOLD is limited to90% of the result.However, the 90% limit doesn’t applyto an ATNOL that is attributable toqualified disaster losses beforeDecember 19, 2004 (as defined insection 172(j)), qualified GulfOpportunity Zone losses (as defined insection 1400N(k)(2)), qualified recoveryassistance losses (as defined in Pub.4492-A, Information for TaxpayersAffected by the May 4, 2007, KansasStorms and Tornadoes), qualifiedInstructions for Form 6251 (2021)disaster recovery assistance losses (asdefined in Pub. 4492-B, Information forAffected Taxpayers in the MidwesternDisaster Areas), or a 2008 or 2009 lossthat you elected to carry back more than2 years under section 172(b)(1)(H).Therefore, if an ATNOL that is carriedback or carried forward to the tax year isattributable to any of those losses, theATNOLD for the tax year is limited to thesum of:1. The smaller of:a. The sum of the ATNOLcarrybacks and carryforwards to the taxyear attributable to net operating lossesother than those losses described in 2abelow, orb. 90% of AMTI for the tax year(figured without regard to the ATNOLD);plus2. The smaller of:a. The sum of the ATNOLcarrybacks and carryforwards to the taxyear attributable to qualified disasterlosses, qualified Gulf Opportunity Zonelosses, qualified recovery assistancelosses, qualified disaster recoveryassistance losses, and any 2008 or2009 loss that you elected to carry backmore than 2 years under section 172(b)(1)(H), orb. 100% of AMTI for the tax year(figured without regard to the ATNOLD)reduced by the amount determinedunder (1).Enter on line 2f the smaller of theATNOLD or the ATNOLD limitation.Enter it as a negative amount.Any ATNOL not used generally maybe carried back 2 years or forward up to20 years if it arose before your 2018 taxyear. Any ATNOL arising after your2020 tax year generally may be carriedforward indefinitely. For moreinformation about carryover periods andspecial rules for 2018 through 2020losses, see Pub. 536.The treatment of ATNOLs doesn’taffect your regular tax NOL. However, ifyou elected under section 172(b)(3) toforgo the carryback period for theregular tax, the election also applies forthe AMT.Line 2g—Interest From PrivateActivity BondsEnter on line 2g interest income from“specified private activity bonds”reduced (but not below zero) by anydeduction that would have beenallowable if the interest were includiblein gross income for the regular tax. Eachpayer of this type of interest should-3-send you a Form 1099-INT showing theamount of this interest in box 9.Generally, the term “specified privateactivity bond” means any private activitybond (as defined in section 141) theinterest on which isn’t includible in grossincome for the regular tax, if the bondwas issued after August 7, 1986. Butspecified private activity bondsgenerally don’t include any bondsissued in 2009 or 2010. See section57(a)(5) for other exceptions and moredetails.Don’t include interest on qualifiedGulf Opportunity Zone bonds orqualified Midwestern disaster areabonds.Exempt-interest dividends paid by amutual fund or other regulatedinvestment company are treated asinterest income on specified privateactivity bonds to the extent thedividends are attributable to interest onthe bonds received by the company,minus an allocable share of theexpenses paid or incurred by thecompany in earning the interest. Thisamount should be reported to you onForm 1099-DIV in box 12.If you are filing Form 8814, Parents'Election To Report Child's Interest andDividends, include on this line anytax-exempt interest income from line 1bof that form that is a preference item.Line 2h—Qualified SmallBusiness StockIf you claimed the exclusion undersection 1202 for gain on qualified smallbusiness stock acquired beforeSeptember 28, 2010, and held morethan 5 years, multiply the excluded gain(as shown on Form 8949 in column (g))by 7% (0.07). Enter the result on line 2has a positive amount.Line 2i—Exercise of IncentiveStock OptionsFor the regular tax, no income isrecognized when an incentive stockoption (ISO), as defined in section422(b), is exercised. However, this ruledoesn’t apply for the AMT. Instead, youmust generally include on line 2i theexcess, if any, of:1. The fair market value of the stockacquired through exercise of the option(determined without regard to any lapserestriction) when your rights in theacquired stock first become transferableor when these rights are no longersubject to a substantial risk of forfeiture;over
2. The amount you paid for thestock, including any amount you paid forthe ISO used to acquire the stock.Even if your rights in the stock aren’ttransferable and are subject to asubstantial risk of forfeiture, you mayelect to include in AMT income theexcess of the stock's fair market value(determined without regard to any lapserestriction) over the exercise price uponthe transfer to you of the stock acquiredthrough exercise of the option. Youmust make the election by the 30th dayafter the date of the transfer. See Pub.525, Taxable and Nontaxable Income,for more details.If you acquired stock by exercisingan ISO and you disposed of that stock inthe same year, the tax treatment underthe regular tax and the AMT is thesame, and no adjustment is required.Increase your AMT basis in any stockacquired through the exercise of an ISOby the amount of the adjustment. Keepadequate records for both the AMT andregular tax so that you can figure youradjustment. See the instructions forline 2k.Form 3921. If you received a Form3921, it may help you figure youradjustment.Example. You exercised an ISO toacquire 100 shares of stock in 2021.Your rights in the acquired stock firstbecame transferable on the date youexercised the ISO and weren’t subjectto a substantial risk of forfeiture. Youdidn’t pay anything for the ISO. Youdidn’t sell the acquired stock during2021. You received a Form 3921 thatshows 10 in box 3 (the exercise priceyou paid for each share), 25 in box 4(the fair market value of each share onthe exercise date), and 100 shares inbox 5 (the number of shares youacquired). To figure your adjustment,multiply the amount in box 4, 25, by the100 shares in box 5. The result is 2,500, the fair market value of all theshares. Then, multiply the amount inbox 3, 10, by the 100 shares in box 5.The result is 1,000, the amount youpaid for all the shares. Your adjustmentis 1,500 ( 2,500 1,000). Enter it onForm 6251, line 2i.Line 2k—Disposition ofPropertyYour AMT gain or loss from thedisposition of property may be differentfrom your gain or loss for the regular tax.This is because the property may havea different adjusted basis for the AMT.Use this line to report any AMTadjustment resulting from refiguring:1. Gain or loss from the sale,exchange, or involuntary conversion ofproperty reported on Form 4797, Salesof Business Property;2. Casualty gain or loss to businessor income-producing property reportedon Form 4684, Casualties and Thefts;3. Ordinary income from thedisposition of property not already takeninto account in (1) or (2) or on any otherline on Form 6251, such as adisqualifying disposition of stockacquired in a prior year by exercising anincentive stock option; and4. Capital gain or loss (including anycarryover that is different for the AMT)reported on Form 8949, Sales andOther Dispositions of Capital Assets, orSchedule D (Form 1040), Capital Gainsand Losses.First figure any ordinary incomeadjustment related to (3) above. Then,refigure Form 4684, Form 4797, Form8949, and Schedule D for the AMT, ifapplicable, by taking into account anyadjustments you made this year or inprevious years that affect your basis orotherwise result in a different amount forthe AMT. When you refigure your gainor loss on Form 8949 for AMT, theamount of gain you elected to defer forregular tax purposes due to aninvestment in a qualified opportunityfund may need to be adjusted on yourAMT Form 8949. An adjustment may berequired if the regular tax and AMTadjusted basis of the property you soldprior to your investment is different.If you have a capital loss afterrefiguring Schedule D for the AMT,apply the 3,000 capital loss limitationseparately to the AMT loss. Becausethe amount of your gains and lossesmay be different for the AMT, theamount of any capital loss carryovermay also be different for the AMT. Seethe following example. To figure yourAMT capital loss carryover, fill out anAMT Capital Loss Carryover Worksheetin the Schedule D instructions.For each of the four items listedearlier, figure the difference between theamount included in taxable income forthe regular tax and the amount includedin income for the AMT. Include thedifference as a negative amount online 2k if (a) both the AMT and regulartax amounts are zero or more and theAMT amount is less than the regular taxamount; or (b) the AMT amount is aloss, and the regular tax amount is asmaller loss, or is zero or more.-4-Enter on line 2k the combinedadjustments for the four items listedearlier.Example. On March 13, 2020,Victor Ash, whose filing status is single,paid 20,000 to exercise an ISO (whichwas granted to him on January 3, 2019)to buy 200 shares of stock worth 200,000. The 180,000 differencebetween his cost and the value of thestock at the time he exercised the optionisn’t taxable for the regular tax. Hisregular tax basis in the stock at the endof 2020 is 20,000. For the AMT,however, Ash must include the 180,000 as an adjustment on his 2020Form 6251. His AMT basis in the stockat the end of 2020 is 200,000.On January 18, 2021, Ash sold 100of the shares for 75,000. Because Ashdidn’t hold these shares more than 1year, that sale is a disqualifyingdisposition. For the regular tax, Ash hasordinary income of 65,000 ( 75,000minus his 10,000 basis in the 100shares). Ash has no capital gain or lossfor the regular tax resulting from thesale. For the AMT, Ash has no ordinaryincome, but has a short-term capitalloss of 25,000 ( 75,000 minus his 100,000 AMT basis in the 100 shares).On April 21, 2021, Ash sold the other100 shares for 60,000. Because heheld the shares for more than 1 yearand more than 2 years had passedsince the option was granted to him, thesale isn’t a disqualifying disposition. Forthe regular tax, Ash has a long-termcapital gain of 50,000 ( 60,000 minushis regular tax basis of 10,000). For theAMT, Ash has a long-term capital lossof 40,000 ( 60,000 minus his AMTbasis of 100,000).Ash has no other sales of stock orother capital assets for 2021. Ash entersa total negative adjustment of 118,000on line 2k of his 2021 Form 6251,figured as follows. Ash figures a negative adjustment of 65,000 for the difference between the 65,000 of regular tax ordinary incomeand the 0 of AMT ordinary income forthe first sale. For the regular tax, Ash has 50,000capital gain net income from the secondsale. For the AMT, Ash has a 25,000short-term capital loss from the firstsale, and a 40,000 long-term capitalloss from the second sale, resulting in anet capital loss of 65,000 for the AMT.However, only 3,000 of the 65,000net capital loss is allowed for 2021 forthe AMT. The difference between theregular tax gain of 50,000 and the 3,000 loss allowed for the AMT resultsInstructions for Form 6251 (2021)
in a 53,000 negative adjustment toinclude on line 2k.Ash has an AMT capital losscarryover from 2021 to 2022 of 62,000,of which 22,000 is short term and 40,000 is long term. If he has no otherForm 8949 or Schedule D transactionsfor 2022, his adjustment reported on his2022 Form 6251 would be limited to( 3,000), the amount of his capital losslimitation for 2022.Line 2l—Post-1986DepreciationTo avoid duplication, any AMTadjustment or tax preferenceCAUTION item taken into account on thisline shouldn’t be taken into account infiguring the amount to enter on anyother adjustment or tax preference itemline of this form.!This section describes whendepreciation must be refigured for theAMT and how to figure the amount toenter on line 2l.Don’t use line 2l for depreciationrelated to the following. Passive activities. Take thisadjustment into account on line 2m. An activity for which you aren’t at risk.Take this adjustment into account online 2n. Income or loss from a partnership oran S corporation if the basis limitationsapply. Take this adjustment into accounton line 2n. A tax shelter farm activity. Take thisadjustment into account on line 3.What Depreciation Must BeRefigured for the AMT?Generally, you must refiguredepreciation for the AMT, includingdepreciation allocable to inventorycosts, for: Property placed in service after 1998that is depreciated for the regular taxusing the 200% declining balancemethod (generally 3-, 5-, 7-, and10-year property under the modifiedaccelerated cost recovery system(MACRS), except for certain qualifiedproperty eligible for the specialdepreciation allowance (discussedlater)); Section 1250 property placed inservice after 1998 that isn’t depreciatedfor the regular tax using the straight linemethod; and Tangible property placed in serviceafter 1986 and before 1999. (If thetransitional election was made undersection 203(a)(1)(B) of the Tax ReformInstructions for Form 6251 (2021)Act of 1986, this rule applies to propertyplaced in service after July 31, 1986.)What Depreciation Isn’t Refiguredfor the AMT?Don’t refigure depreciation for the AMTfor the following. Residential rental property placed inservice after 1998. Nonresidential real property with aclass life of 27.5 years or more placed inservice after 1998 that is depreciated forthe regular tax using the straight linemethod. Other section 1250 property placed inservice after 1998 that is depreciated forthe regular tax using the straight linemethod. Property (other than section 1250property) placed in service after 1998that is depreciated for the regular taxusing the 150% declining balancemethod or the straight line method. Property for which you elected to usethe alternative depreciation system(ADS) of section 168(g) for the regulartax. Qualified property that is or waseligible for a special depreciationallowance if the depreciable basis of theproperty is the same for the AMT andthe regular tax. This applies to anyspecial depreciation allowance,including those for disaster assistanceproperty, reuse and recycling property,cellulosic biofuel plant property, secondgeneration biofuel plant property, NewYork Liberty Zone property, GulfOpportunity Zone property, and Kansasdisaster area recovery assistanceproperty. The special allowance isdeductible for the AMT, and noadjustment is required for anydepreciation figured on the remainingbasis of the qualified property becausethe depreciable basis of the property isthe same for the AMT and the regulartax. If you elected not to have anyspecial depreciation allowance apply,the property may be subject to an AMTadjustment for depreciation if it wasplaced in service before 2016. It isn’tsubject to an AMT adjustment fordepreciation if it was placed in serviceafter 2015. Any part of the cost of any propertyfor which you elected to take a section179 expense deduction. The reductionto the depreciable basis of section 179property by the amount of the section179 expense deduction is the same forthe regular tax and the AMT. Motion picture films, videotapes, orsound recordings.-5- Property depreciated under theunit-of-production method or any othermethod not expressed in a term ofyears. Indian reservation property thatmeets the requirements of section168(j). A natural gas gathering line placed inservice after April 11, 2005.How Is Depreciation Refigured forthe AMT?Property placed in service before1999. Refigure depreciation for theAMT using ADS, with the sameconvention used for the regular tax. Seethe following table for the method andrecovery period to use.Property Placed in Service Before 1999IF the property is.THEN use the.section 1250 propertystraight line methodover 40 years.tangible propertystraight line method(other than sectionover the property's1250 property)AMT class life.depreciated usingstraight line method forthe regular taxany other tangibleproperty150% decliningbalance method,switching to straightline method the firsttax year it gives alarger deduction, overthe property's AMTclass life.Property placed in service after1998. Use the same convention andrecovery period used for the regular tax.For property other than section 1250property, use the 150% decliningbalance method, switching to straightline the first tax year it gives a largerdeduction. For section 1250 property,use the straight line method.How Is the AMT Class LifeDetermined?The class life used for the AMT isn’tnecessarily the same as the recoveryperiod used for the regular tax. Theclass lives for the AMT are listed in Rev.Proc. 87-56, 1987-2 C.B. 674, and inPub. 946, How To Depreciate Property.Use 12 years for any tangible personalproperty not assigned a class life.
See Pub. 946 for tables that canTIP be used to figure AMTdepreciation. Rev. Proc. 89-15,1989-1 C.B. 816, has special rules forshort years and for property dispo
(AMTI) To avoid duplication, any adjustment or preference for line 2m or 2n or for a tax shelter farm activity on line 3 must not be taken into account in figuring the amount to enter for any other adjustment or preference. Line 1. If Form 1040 or 1040-SR, line 15, is zero and includes a write-in amount (such as a capital construction fund
