What is a form 4626?
What is a form 4626?
Form 4626. Department of the Treasury. Internal Revenue Service. Alternative Minimum Tax—Corporations. ▶ Attach to the corporation’s tax return.
What is the form the AMT is calculated on?
Form 6251
Form 6251 is used by taxpayers to calculate their AMT or to determine if they are subject to it.
How do you explain AMT?
An alternative minimum tax (AMT) places a floor on the percentage of taxes that a filer must pay to the government, no matter how many deductions or credits the filer may claim. The AMT recalculates income tax after adding certain tax preference items back into adjusted gross income.
How do I know if I need to file Form 6251?
You may need to file Form 6251 if you have specific AMT items. If you need to report any of the following items on your tax return, you must file Form 6251, Alternative Minimum Tax, even if you do not owe AMT. Home mortgage interest on a loan that you did not use to buy, build or improve your home.
Where does AMT go on 1040?
You may need to sell some of the stock in the year of the exercise to pay the tax due. Line 2j: Estates or trusts: This line contains differences between AMT and regular tax deductions from estates or trusts. Unfortunately, decisions by the administrators of the estate or trust may be beyond your control.
What deductions are not allowed for AMT?
Line 2a: Standard deduction or deductible taxes from Schedule A: In calculating the AMT, you cannot take itemized deductions for state and local income tax, real estate taxes and personal property taxes, even though these are deductible on your regular return.
What is the purpose of Form 6251?
Use Form 6251 to figure the amount, if any, of your alternative minimum tax (AMT). The AMT applies to taxpayers who have certain types of income that receive favorable treatment, or who qualify for certain deductions, under the tax law.
Do you have to file a consolidated return on form 4626?
Consolidated returns. For an affiliated group filing a consolidated return under the rules of section 1501, AMT must be figured on a consolidated basis. Generally, file Form 4626 if any of the following apply. The corporation is not a “small corporation” exempt from the AMT (as explained below).
What does running balance mean on IRS Form 4626?
A “running balance” of the excess of the corporation’s total increases in alternative minimum taxable income (AMTI) from prior year adjusted current earnings (ACE) adjustments over the total reductions in AMTI from prior year ACE adjustments (see the instructions for line 4d).
How to figure the AMT on a consolidated return?
Use Form 4626 to figure the AMT under section 55 for a corporation that is not exempt from the AMT. Consolidated returns. For an affiliated group filing a consolidated return under the rules of section 1501, AMT must be figured on a consolidated basis. Generally, file Form 4626 if any of the following apply.
When does form 4626 expire in American Samoa?
For the latest information about developments to Form 4626 and its instructions, such as legislation enacted after they were published, go to IRS.gov/Form4626. American Samoa economic development credit. The alternative minimum tax (AMT) adjustments for the American Samoa economic development credit expired December 31, 2016.