AMT Form 6251 - Line 17

[LorianneH]

Can anyone tell me how Line 17 is calculated? It links me to "Adjustment from Form 1040 Schedule D" but it does not show me how the number is actually calculated.

On another AMT issue, does anyone know how Box 12, Line A is calculated on a 1041 K-1? I can also not come to a conclusion on how this gets calculated.

Thank you!!!!

[Maribeth]

Line 17 is the line for adjusting between regular tax & AMT for disposal of assets.

Say you have a piece of equipment. Cost is $10,000; regular a/d is $7,000; AMT a/d is $5,000.

You sell it for $10,000 to keep it simple here.

Your gain for regular tax is $7,000.

Your gain for AMT tax is $5,000.

On line 17 you would put $2,000, which is the difference between the regular gain and the AMT gain.

[Margaret CPA in OH]

I just scrolled through a trust return I have. The number flowed through from the deductions from page 1 as a tax-exempt item, Ord. Divs, Private Activity Bonds. You may have something different.

[LorianneH]

Thank you. If all of the numbers that I input came from a K-1, can I be certain that ATX is calculating everything properly? I do not have the information to verify the regular A/D and the AMT A/D.

[Maribeth]

Yes, if they are coming from a K-1, then the assumption is whoever did that K-1 prepared it correctly.