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Question

I am not sure how lines 2k, 2l, 2m, and 2n calculate on Form 6251. Does the application provide detail for these amounts?

Answer

AMT versions of Schedule D, Form 4797, and Form 6252 are printed with the return. The Form 6251, AMT Disposition of Property WOrksheet calculates the difference between AMT and Regular tax gain or loss and reports it on Form 6251, line 2k. The worksheet is located on the AMT Disposition of Property Exemption worksheets located in the 6251Wrk folder.

All AMT forms are located in the same folder as the regular version of the form. For example, AMT Schedule D is located in the D folder, AMT 4797 is located in the 4797 folder, etc. 

Only the post-1986 depreciation adjustment from nonpassive activities is reported on line 21. The adjustment for passive activities is used in the Line 2m calculation.

Form 6251, Passive Activities and Loss Limitations Adjustment Worksheet, is printed to detail Form 6251, lines 2m and 2n. In addition, the K1 Reconciliation - AMT Worksheet provides detail on the loss limitation adjustments made to each pass-through entity.

The application follows Form 6251 instructions and enters any adjustments for amounts reported on Form 8949, Schedule D or Form 4797 for passive and loss limitation activities on line 2k instead of line 2m.

Basis and at-risk limitations applicable to activities are recalculated taking into account AMT adjustment and preference items like depreciation, installment sales, long-term contracts, mining costs, patron's adjustment, and depletion. The application calculates the difference between the allowable regular tax and AMT amounts for operating income, rental real estate, other rental, other portfolio losses, other Schedule E losses, and other Form 1040, Page 1 losses. If the AMT loss is more than the regular tax loss, or the AMT gain is less than the regular tax gain, or there is an AMT loss and regular tax gain,  line 2n is reported as a negative amount. Adjustments for Schedule D, Form 4684, or Form 4797 amount are reported on Form 6251, line 2k, Adjusted gain or loss. Force the amount on line 2n for loss limitations in Screen AMT in the Loss limits (Force) field, if necessary. Form 6251, Passive Activities and Loss Limitations Adjustment Worksheet provides a breakdown of each activity's adjustments. Also, see the K1 Reconciliation - AMT Worksheet for a breakdown of an individual activity.

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