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Form 6251, lines 2k, 2l, 2m, and 2n calculation

UltraTax CS prints AMT versions of Schedule D, Form 4797, and Form 6252 with the return. 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. You can find the worksheet in the AMT Disposition of Property Exemption worksheets in the
6251Wrk
 folder.
All AMT forms are in the same folder as the regular version of the form. For example, AMT Schedule D is in the
D
 folder, AMT 4797 is in the
4797
 folder, and so on.
Only the post-1986 depreciation adjustment from nonpassive activities reports on line 21. The Line 2m calculation uses the adjustment for passive activities.
UltraTax CS prints Form 6251, Passive Activities and Loss Limitations Adjustment Worksheet, to detail Form 6251, lines 2m and 2n. In addition, the K1 Reconciliation - AMT Worksheet gives 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 related 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's an AMT loss and regular tax gain, line 2n is reported as a negative amount. Adjustments for Schedule D, Form 4684, or Form 4797 amounts are reported on Form 6251, line 2k, Adjusted gain or loss. Force the amount on line 2n for loss limitations in the
Loss limits (Force)
 field on the
AMT
 screen, if necessary. Form 6251, Passive Activities and Loss Limitations Adjustment Worksheet gives 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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