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CAUTION

Don’t make this adjustment for costs for which you elected the optional 60-month write-off for the regular tax.

IDCs from oil, gas, and geothermal wells are a preference to the extent that the excess IDCs are more than 65% of the net income from the wells. Figure the preference for all oil and gas properties separately from the preference for all geothermal properties.

Excess IDCs. Figure excess IDCs as follows.

Step 1. Determine the amount of your IDCs allowed for the regular tax under section 263(c), but don’t include any section 263(c) deduction for nonproductive wells.

Step 2. Subtract from the amount determined in Step 1 the amount that would have been allowed had you amortized

Instructions for Form 6251 (2025) 7

these IDCs over a 120-month period starting with the month the well was placed in production. If you prefer not to use the 120-month period, you can elect to use any method that is permissible in determining cost depletion.

Net income. Determine net income by reducing the gross income that you received or accrued during the tax year from all oil, gas, and geothermal wells by the deductions allocable to those wells (reduced by the excess IDCs). When refiguring net income, use only income and deductions allowed for the AMT.

Exception. The preference for IDCs from oil and gas wells doesn’t apply to taxpayers who are independent producers (that is, not integrated oil companies as defined in section 291(b)(4)). However, this benefit may be limited. First, figure the IDC preference as if this exception didn’t apply. Then, for purposes of this exception, complete Form 6251 through line 3, including the IDC preference and treating line 2f as if it were zero, and combine lines 1 through 3. If the amount of the IDC preference exceeds 40% of the total of lines 1 through 3 (figured as described in the preceding sentence), enter the excess on line 2t (your benefit from this exception is limited). Otherwise, don’t enter an amount on line 2t (your benefit from this exception isn’t limited).

Line 3—Other Adjustments Enter on line 3 the total of any other adjustments that apply to you, including the following.

Depreciation Figured Using Pre-1987 Rules

This preference generally applies only to property placed in service after 1987 but depreciated using pre-1987 rules due to transitional provisions of the Tax Reform Act of 1986.

For the AMT, you must use the straight line method to figure depreciation on real property for which accelerated depreciation was determined using pre-1987 rules. Use a recovery period of 19 years for 19-year real property and 15 years for low-income housing. For leased personal property other than recovery property, enter the amount by which your regular tax depreciation using the pre-1987 rules exceeds the depreciation allowable using the straight line method. For leased 10-year recovery property and leased 15-year public utility property, enter the amount by which your regular tax depreciation exceeds the depreciation allowable using the straight line method with a half-year convention, no salvage value, and a recovery period of 15 years (22 years for 15-year public utility property).

Figure the excess of the regular tax depreciation over the AMT depreciation separately for each property and include on line 3 only positive amounts.

Pollution Control Facilities

The section 169 election to amortize the basis of a certified pollution control facility over a 60-month or 84-month period isn’t available for the AMT. For facilities placed in service before 1999, figure the AMT deduction using ADS. For facilities placed in service after 1998, figure the AMT deduction under MACRS using the straight line method. Enter the difference between the regular tax and AMT deduction. If the AMT deduction is more than the regular tax deduction, enter the difference as a negative amount.

• Don’t use a refigured loss in the current tax year to offset gains from other tax shelter farm activities. Instead, suspend any refigured loss and carry it forward indefinitely until (a) you have a gain in a subsequent tax year from that same activity or (b) you dispose of the activity.

Enter the difference between the amount that would be reported for the activity on Schedule E or F or Form 4835 for the AMT and the regular tax amount. If (a) the AMT loss is more than the regular tax loss, (b) the AMT gain is less than the regular tax gain, or (c) you have an AMT loss and a regular tax gain, enter the adjustment as a negative amount.

Enter any adjustment for amounts reported on Form 8949, Schedule D, Form 4684, or Form 4797 for the activity on line 2k instead of line 3.

Charitable Contributions of Certain Property

If you made a charitable contribution of property to which section 170(e) applies and you had a different basis for AMT purposes, you may have to make an adjustment. See section 170(e) for details.

Business Interest Limitation

Complete an AMT Form 8990 using amounts adjusted for AMT. Enter the difference between the AMT and regular tax allowable interest expense. If line 30 of the AMT Form 8990 is more than the amount on line 30 of the regular tax Form 8990, enter the difference as a negative amount.

Mortgage Interest

If you deducted home mortgage interest on Schedule A for a dwelling that isn’t a principal residence (within the meaning of section 121) or qualified dwelling for AMT, include that deducted interest on line 3. A qualified dwelling for AMT is a house, apartment, condominium, or mobile home not used on a transient basis. A qualified dwelling for AMT doesn’t include house boats and recreational vehicles.

Net Qualified Disaster Loss

If you filed Schedule A to claim an increased standard deduction on Form 1040 or 1040-SR due to a loss you suffered related to property in a federally declared disaster area, then include on line 3 the standard deduction amount you listed on the dotted line next to Schedule A, line 16, as your “Standard Deduction Claimed With Qualified Disaster Loss.”

Tax Shelter Farm Activities

Figure this adjustment only if you have a gain or loss from a tax shelter farm activity (as defined in section 58(a)(2)) that isn’t a passive activity. If the activity is passive, you must include it with your other passive activities on line 2m.

Refigure all gains and losses you reported for the regular tax from tax shelter farm activities by taking into account any AMT adjustments and preferences. Determine your tax shelter farm activity gain or loss for the AMT using the same rules you used for the regular tax with the following modifications.

• No refigured loss is allowed, except to the extent you are insolvent (see section 58(c)(1)).

8 Instructions for Form 6251 (2025)

If you filed Schedule A to itemize your deductions, then don’t make this adjustment.

Related Adjustments

If you have an entry on line 2c because you deducted investment interest allocable to an interest in a trade or business, or on line 2d, 2h, 2i, or 2k through 2t, or you have any amount included on line 3 from pre-1987 depreciation, pollution control facilities, or tax shelter farm activities, you may have to refigure any item of income or deduction based on a limit of income other than adjusted gross income (AGI) or modified AGI.

Affected items include the following.

• Section 179 expense deduction (Form 4562, line 12).

• Expenses for business or rental use of your home.

• Conservation expenses (Schedule F (Form 1040), line 12).

• Taxable IRA distributions (Form 1040, 1040-SR, or 1040-NR, line 4b), if prior-year IRA deductions were different for the AMT and the regular tax.

• Self-employed health insurance deduction (Schedule 1 (Form 1040), line 17).

• Self-employed SEP, SIMPLE, and qualified plans deduction (Schedule 1 (Form 1040), line 16).

• IRA deduction (Schedule 1 (Form 1040), line 20), affected by the earned income limitation of section 219(b)(1)(B).

Figure the difference between the AMT and regular tax amount for each item. Combine the amounts for all your related adjustments and include the total on line 3. Keep a copy of all computations for your records, including any AMT carryover and basis amounts.

Your section 179 deduction for the regular tax is limited to your net profit (before any section 179 deduction) of $9,000. The $1,000 excess is a section 179 deduction carryforward for the regular tax.

For the AMT, your net profit is $9,700, and you are allowed a section 179 deduction of $9,700 for the AMT. You have a section 179 deduction carryforward of $300 for the AMT.

You include a $700 negative adjustment on line 3 because your section 179 deduction for the AMT is $700 greater than your allowable regular tax deduction. In the following year, when you use the $1,000 regular tax carryforward, you will have a $700 positive related adjustment for the AMT because your AMT carryforward is only $300.

Line 4—Alternative Minimum Taxable Income If your filing status is married filing separately and line 4 is more than $900,350, you must include an additional amount on line 4. If line 4 is $1,174,350 or more, include an additional $68,500. Otherwise, include 25% of the excess of the amount on line 4 over $900,350. For example, if the amount on line 4 is $920,350, enter $925,350 instead—the additional $5,000 is 25% of $20,000 ($920,350 minus $900,350).

Special Rule for Holders of a Residual Interest in a Real Estate Mortgage Investment Conduit (REMIC)

If you held a residual interest in a REMIC in 2025, the amount you enter on line 4 may not be less than the amount on Schedule E, line 38, column (c). If the amount in column (c) is larger than the amount you would otherwise enter on line 4, enter the amount from column (c) instead and enter “Sch. Q” on the dotted line next to line 4.

If your filing status is married filing separately, be sure to include the additional amount that must be added to line 4 (as explained above) before you compare line 4 with the amount on Schedule E, line 38, column (c).