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Tax Instructions for Form 6251

Below are some tax instructions for Form 6251.

Part I of the IRS tax form 6251

Part I of Form 6251 deals with adjustments and preferences. The adjustments are additions or subtractions. The preferences are generally additions.

AMT

You make an addition if:

  • the AMT deduction is less than the deduction of regular tax or if
  • the AMT income is greater than the income of the regular tax.
Alternative Min Tax

You make a subtraction if:

  • the AMT deduction is greater than the deduction of the regular tax or if
  • the AMT income is less than the income of the regular tax.


Common adjustments and tax preferences

The more common adjustments and tax preference items include:

  • Addition of personal exemptions
  • Addition of the standard deduction, if claimed
  • Addition of itemized deductions claimed for state and local taxes, certain interest, most miscellaneous deductions and part of medical expenses
  • Subtraction of any refund of state and local taxes included in gross income
  • Depreciation on assets placed in service after 1986 (difference between regular tax and AMT)
  • Difference between gain or loss on the sale of property reported for regular tax purposes and AMT purposes
  • Addition of certain income from incentive stock options
  • Change in certain passive activity loss deductions
  • Addition of certain depletion
  • Addition of part of the deduction for certain intangible drilling costs
  • Addition of tax exempt interest on certain private activity bonds 

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