Use Form 6251 to calculate the amount, if any, of your alternative minimum tax (AMT). The AMT applies to taxpayers who have certain types of income, who receive favorable treatment, or who qualify for certain deductions, under tax law. The law establishes the AMT exemption amounts and the AMT tax rates. Taxpayers can use existing special capital gains rates for regular tax if they are lower than the AMT tax rates that would otherwise apply.
In addition, some tax credits that reduce the regular tax liability do not reduce the AMT's tax liability. Except as provided in clause (ii), the depreciation deduction allowed under section 167 with respect to any tangible asset put into service after December 31, 1986 shall be determined under the alternative system of section 168 (g). In the case of goods placed in service after December 31, 1998, the previous sentence will not apply, but clause (ii) will continue to apply. This paragraph shall not apply to goods described in paragraph (, (o) of section 168 (f) or section 168 (e) ((C) (iv).
This paragraph shall not apply to goods placed in service after December 31, 1986, to which the amendments introduced by section 201 of the Tax Reform Act of 1986 do not apply under sections 203, 204, or 251 (d) of that Act. With respect to the utility properties described in section 168 (i) (), the Secretary shall prescribe the requirements of an accounting standardization method in this section. With respect to each mine or other natural deposit (other than an oil, gas, or geothermal well) of the taxpayer, the amount allowed as a deduction under section 616 (a) or 617 (a) (determined without regard to section 291 (b)) when calculating regular tax for costs paid or incurred after December 31, 1986, will be capitalized and amortized proportionately during the 10-year period beginning with the tax year in which the expenses were incurred. In the case of any long-term contract entered into by the taxpayer on or after March 1, 1986, the taxable income of such contract shall be determined according to the completion percentage accounting method (as amended by section 460 (b)).
For the purposes of the previous sentence, in the case of a contract described in section 460 (e) (), the percentage of the contract completed shall be determined in section 460 (b) (using the simplified procedures for the allocation of costs prescribed in section 460 (b) (. The first sentence of this paragraph shall not apply to any home construction contract (as defined in section 460 (e) (). In the case of any certified pollution control facility that enters service after December 31, 1986, the deduction allowed under section 169 (regardless of section 29) shall be determined under the alternative system in section 168 (g). In the event that such an installation enters service after December 31, 1998, such deduction shall be determined under section 168 using the linear method.
The adjusted basis of any property to which paragraph (o) applies (or with respect to which there are any expenses to which the paragraph (or subsection (b) ()) applies shall be determined on the basis of the treatment prescribed in paragraph (, (o) or subsection (b) (, as appropriate). Section 87 (relating to the fuel credit for alcohol) shall not apply. The recovery of any tax to which subparagraph (A) (ii) applies shall not be included in gross income for the purpose of determining the alternative minimum taxable income. The standard deduction under section 63 (c), the deduction for personal exemptions under section 151, and the deduction under section 642 (b) will not be allowed.
If the taxpayer materially participates (within the meaning of section 469 (h)) in an activity, this paragraph will not apply to any amount allowed as a deduction under section 174 (a) for expenses paid or incurred in connection with that activity. Section 421 shall not apply to the transfer of shares acquired pursuant to the exercise of an incentive stock option (as defined in section 42. Section 422 (c) (shall apply in any case where the alienation and inclusion for purposes of this part are within the same tax year) and that section shall not apply in any other event. The adjusted basis for any action so acquired shall be determined on the basis of the treatment prescribed in this paragraph. Article 201 of the Tax Reform Act of 1986, referred to in the subsections.
A) (C) and (g) (A) (ii), is section 201 of the Pub. C) which referred to adjustments applicable to companies. G) which referred to adjustments based on adjusted current earnings. Subsecond.
I) and (J) as (H) and (I), respectively. H) which referred to adjustment based on energy preferences. F) which referred to adjustments to the accounting revenues of companies with respect to minimum taxable income, adjusted net accounting income, adjustments for certain taxes, special rules for related companies for consolidated returns, treatment of dividends, returns that covered different periods, the special rule for cooperatives, the treatment and limitation of taxes on dividends of 936 corporations, the rules for corporations native to Alaska, the rules for corporations native to Alaska, the rules special for life insurance companies, the exclusion of certain income from the transfer of shares due to debt, the secretarial authority to adjust items, applicable financial statements, profits and profits used, special rules for more than one state, and exceptions for certain companies. And (“) of article 59 (g) are each amended by marking 'starting in 1989', implemented in paragraphs.
Y (A) of the subsecond. (G) of this section after “any tax year”. G) and (H) as (F) and (G), respectively, and were previously crossed out below average. (F), which provided that the acquisition expenses of life insurance companies be capitalized and amortized in accordance with the treatment generally required by generally accepted accounting principles, as if this subparagraph applied to all tax years.
and replaced “this paragraph with” the previous sentence in the last sentence. Vii) as (v), and crossed out the old cl. V), which referred to the use of a slower method if used for book purposes, and cl. Vi), which referred to the choice to have a cumulative limitation.
For the purposes of the previous sentence, the term “100 percent dividend” means any dividend if the percentage used to determine the amount allowed as a deduction under sections 243 or 245 with respect to that dividend is 100 percent. I), replacing the provisions that order the adjustments of section 312 (n) (A) to be applied, with the provisions that order the application of the adjustments of section 312 (n), with certain exceptions, in cl. Ii), replacing the provisions mandating that sections 173 and 248 not apply to expenses paid or incurred in tax years beginning after December 31, 1989, with material related to the special rule for intangible drilling costs and mineral exploration and development costs, and adding cls. Then, the adjusted base of each asset of that corporation (at that time) will be its proportional share (determined on the basis of the respective fair market values) of the amount mentioned in clause (ii) (II).
B) as (A) and previously labeled poor quality. Pub. ii) and inserted a sentence at the end stating that an element of tax preference will be taken into account under clause (ii). I) a (iii) for old cls.
The income from such disposal shall be determined without regard to the installment payment method set forth in sections 453 or 453A, and all payments received for the disposal shall be considered received in the tax year of the disposal. This paragraph shall not apply to any provision with respect to which an election under section 453C (e) is in effect (. Amendment to section 312 (d) (of Pub. Amendment to section 1601 (b) (B), (C) of the Pub.
Amendment to section 1621 (b) (of the Pub. Amendment to section 1702 (c) (, (e) (A), (g) (and (h) (1) of the Pub. Amendment to section 13171 (b) of the Pub. Amendment to section 11103 (b) of the Pub.
Amendment to section 11812 (b) (of the Pub. F) (from section 168), and does not apply to rehabilitation expenses described in section 252 (f) (of Pub. Amendment to sections 7811 (d) (and 7815 (e) (, of Pub. Amendment to sections 1002 (a) (1) and 1007 (b) (— (1), (1) — (1) of the Pub.
Amendment to section 5041 (b) (of the Pub. Amendment to section 10202 (d) of the Pub. Section applicable to tax years starting after December 31. For provisions that are not modified by sections 11801 and 11812 of Pub. Once you have that version of the AMT of your taxable income, subtract the amount of the AMT exemption.