! preference item taken into account on this line

CAUTION shouldn’t be taken into account in figuring the amount

to enter on any other adjustment or tax preference item line of this form.

For the AMT, you must generally use the percentage-of-completion method described in section 460(b) to determine your income from any long-term contract (defined in section 460(f)). However, this rule doesn’t apply to any home construction contract (as defined in section 460(e) (5)). For contracts excepted from the percentage-of-completion method for the regular tax by section 460(e)(1), use the simplified procedures for allocating costs outlined in section 460(b)(3) to determine the percentage of completion.

Enter the difference between the AMT and regular tax income. If the AMT income is smaller, enter the difference as a negative amount.

Note: If you are required to use the percentage-of-completion method for either the regular tax or the AMT, you may owe or be entitled to a refund of interest for the tax year the contract is completed or adjusted. For details, see Form 8697, Interest Computation Under the Look-Back Method for Completed Long-Term Contracts.

Mining exploration and development costs deducted in full for the regular tax in the tax year they were paid or incurred must be capitalized and amortized over 10 years for the AMT. 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.

If you had a loss on property for which mining costs haven’t been fully amortized for the AMT, your AMT deduction is the smaller of (a) the loss allowable for the costs had they remained capitalized or (b) the remaining costs to be amortized for the AMT.

Line 2r—Research and Experimental Costs

Don’t make this adjustment for costs paid or incurred