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(Obj. 4) Ted R. Langley (SSN XXXXXXXXXXlives at 118 Oxford Ave., Oak Park, IL XXXXXXXXXXIn 2014, he has the following income and deductions. In addition to the above, Ted had federal income taxes...

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(Obj. 4) Ted R. Langley (SSN XXXXXXXXXXlives at 118 Oxford Ave., Oak Park, IL XXXXXXXXXXIn 2014, he has the following income and deductions.

In addition to the above, Ted had federal income taxes withheld of $22,908 during the year. He also paid $25,000 for $47,000 worth of stock through an incentive stock option plan at work. Ted is divorced and claims his 15-year-old daughter, Teresa Langley (SSN XXXXXXXXXX), as a dependent. Teresa lived with her father 10 months during the year. Based on this information, prepare Ted’s 2014 tax return, including Form 6251 to compute his AMT. Ted does not want to contribute $3 to the Presidential Campaign Fund. He does not have a foreign bank account nor did he receive a distribution from a foreign trust. He signs his return on April 15, 2015.

 

Answered Same Day Dec 25, 2021

Solution

Robert answered on Dec 25 2021
126 Votes
2016 Form 6251
Form 6251
Department of the Treasury
Internal Revenue Service (99)
Alternative Minimum Tax—Individuals
â–¶ Information about Form 6251 and its separate instructions is at www.irs.gov/form6251.
â–¶ Attach to Form 1040 or Form 1040NR.
OMB No. 1545-0074
2016
Attachment
Sequence No. 32
Name(s) shown on Form 1040 or Form 1040NR Your social security number
Part I Alternative Minimum Taxable Income (See instructions for how to complete each line.)
1 If filing Schedule A (Form 1040), enter the amount from Form 1040, line 41, and go to line 2. Otherwise,
enter the amount from Form 1040, line 38, and go to line 7. (If less than zero, enter as a negative amount.) 1
2

Medical and dental. If you or your spouse was 65 or older, enter the smaller of Schedule A (Form 1040),
line 4, or 2.5% (0.025) of Form 1040, line 38. If zero or less, enter -0- . . . . . . . . . . . . 2
3 Taxes from Schedule A (Form 1040), line 9 . . . . . . . . . . . . . . . . . . . . 3
4 Enter the home mortgage interest adjustment, if any, from line 6 of the worksheet in the instructions for this line 4
5 Miscellaneous deductions from Schedule A (Form 1040), line 27. . . . . . . . . . . . . . 5
6 If Form 1040, line 38, is $155,650 or less, enter -0-. Otherwise, see instructions . . . . . . . . . 6 ( )
7 Tax refund from Form 1040, line 10 or line 21 . . . . . . . . . . . . . . . . . . . 7 ( )
8 Investment interest expense (difference between regular tax and AMT). . . . . . . . . . . . 8
9 Depletion (difference between regular tax and AMT) . . . . . . . . . . . . . . . . . 9
10 Net operating loss deduction from Form 1040, line 21. Enter as a positive amount . . . . . . . . 10
11 Alternative tax net operating loss deduction . . . . . . . . . . . . . . . . . . . . 11 ( )
12 Interest from specified private activity bonds exempt from the regular tax . . . . . . . . . . 12
13 Qualified small business stock, see instructions . . . . . . . . . . . . . . . . . . . 13
14 Exercise of incentive stock options (excess of AMT income over regular tax income) . . . . . . . . 14
15 Estates and trusts (amount from Schedule K-1 (Form 1041), box 12, code A) . . . . . . . . . 15
16 Electing large partnerships (amount from Schedule K-1 (Form 1065-B), box 6) . . . . . . . . . 16
17 Disposition of property (difference between AMT and regular tax gain or loss) . . . . . . . . . 17
18 Depreciation on assets placed in service after 1986 (difference between regular tax and AMT) . . . . 18
19 Passive activities (difference between AMT and regular tax income or loss) . . . . . . . . . . 19
20 Loss limitations (difference between AMT and regular tax income or loss) . . . . . . . . . . . 20
21 Circulation costs (difference between regular tax and AMT) . . . . . . . . . . . . . . . 21
22 Long-term contracts (difference between AMT and regular tax income) . . . . . . . . . . . 22
23 Mining costs (difference between regular tax and AMT) . . . . . . . . . . . . . . . . 23
24 Research and experimental costs (difference between regular tax and AMT) . . . . . . . . . . 24
25 Income from certain installment sales before January 1, 1987 . . . . . . . . . . . . . . 25 ( )
26 Intangible drilling costs preference . . . . . . . . . . . . . . . . . . . . . . . 26
27 Other adjustments, including income-based related adjustments . . . . . . . . . . . . . 27
28

Alternative minimum taxable income. Combine lines 1 through 27. (If ma
ied filing separately and line
28 is more than $247,450, see instructions.) . . . . . . . . . . . . . . . . . . . . 28
Part II Alternative Minimum Tax (AMT)
29 Exemption. (If you were under age 24 at the end of 2016, see instructions.)
IF your filing status is . . . AND line 28 is not over . . . THEN enter on line 29 . . .
Single or head of household . . . . $119,700 . . . . . $53,900
Ma
ied filing jointly or qualifying widow(er) 159,700 . . . . . 83,800
Ma
ied filing separately . . . . . . 79,850 . . . . . 41,900 } . . 29
If line 28 is over the amount shown above for your filing status, see instructions.
30 Subtract line 29 from line 28. If more than zero, go to line 31. If zero or less, enter -0- here and on lines 31, 33,
and 35, and go to line 34 . . . . . . . . . . . . . . . . . . . . . . . . . . 30
31 • If you are filing Form 2555 or 2555-EZ, see instructions for the amount to enter.
• If you reported capital gain distributions directly on Form 1040, line 13; you reported qualified dividends
on Form 1040, line 9b; or you had a gain on both lines 15 and 16 of Schedule D (Form 1040) (as refigured
for the AMT, if necessary), complete Part III on the back and enter the amount from line 64 here.
• All others: If line 30 is $186,300 or less ($93,150 or less if ma
ied filing separately), multiply line
30 by 26% (0.26). Otherwise, multiply line 30 by 28% (0.28) and subtract $3,726 ($1,863 if
ma
ied filing separately) from the result.
} . . . 31
32 Alternative minimum tax foreign tax credit (see instructions) . . . . . . . . . . . . . . . . 32
33 Tentative minimum tax. Subtract line 32 from line 31 . . . . . . . . . . . . . . . . . . 33
34


Add Form 1040, line 44 (minus any tax from Form 4972), and Form 1040, line 46. Subtract from the result any
foreign tax credit from Form 1040, line 48. If you used Schedule J to figure your tax on Form 1040, line 44,
efigure that tax without using Schedule J before completing this line (see instructions) . . . . . . . . 34
35 AMT. Subtract line 34 from line 33. If zero or less, enter -0-. Enter here and on Form 1040, line 45 . . . . . 35
For Paperwork Reduction Act Notice, see your tax return instructions. Cat. No. 13600G Form 6251 (2016)
Form 6251 (2016) Page 2
Part III Tax Computation Using Maximum Capital Gains Rates
Complete Part III only if you are required to do so by line 31 or by the Foreign Earned Income Tax Worksheet in the instructions.
36

Enter the amount from Form 6251, line 30. If you are filing Form 2555 or 2555-EZ, enter the amount from
line 3 of the worksheet in the instructions for line 31 . . . . . . . . . . . . . . . . . 36
37 Enter the amount from line 6 of the Qualified Dividends and Capital Gain Tax Worksheet in the instructions
for Form 1040, line 44, or the amount from line 13 of the Schedule D Tax Worksheet in the instructions for
Schedule D (Form 1040), whichever applies (as refigured for the AMT, if necessary) (see instructions). If
you are filing Form 2555 or 2555-EZ, see instructions for the amount to enter . . . . . . . . . 37
38

Enter the amount from Schedule D (Form 1040), line 19 (as refigured for the AMT, if necessary) (see
instructions). If you are filing Form 2555 or 2555-EZ, see instructions for the amount to enter . . . . . 38
39

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