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.

	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.
	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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