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Other AMT Adjustments and Preferences
There are several, more unusual, items that must be added back to your regular taxable income in order to calculate your AMT. If any of these items apply to you, enter the total amount as "other AMT adjustments and preferences":
Private activity bond interest: In general, tax-exempt interest on state and local bonds is also tax-exempt for AMT purposes as well. However, certain tax-exempt bonds are "private activity bonds" and the interest on them is not tax-exempt for the AMT. Private activity bonds are used to finance nongovernmental activities, such as industrial development, student loans and low-income housing. The interest payer should provide you with a notice or statement that tells you the "Amount Subject to Alternative Minimum Tax," "Amount Subject to AMT," or something similar. If you're not sure whether this interest is subject to the AMT, ask the payer of the interest or your broker. Interest expenses for investments that are not deductible for AMT purposes, such as private activity bonds Adjustment of net operating losses Passive activity gains and losses: You may have to recompute your gains and losses from passive activities such as rental real estate, estates and trusts, partnerships and sub-chapter S corporations. This would be necessary if you had any adjustments or preferences attributable to these activities. Depletion: Your must refigure your depletion deduction based only on income and deductions that are allowed for the AMT. In most cases, you must also use your basis as it has been adjusted for AMT purposes. Circulation expenses: for the regular tax, these expenses may be deducted in full in the year they are incurred. For AMT purposes, they must be amortized over three years. Enter the difference here. Large Partnerships: If you were a partner in an electing large partnership, enter the amount from Schedule K-1, Form 1065-B, box 6. Installment sales adjustments for certain sales before 1987. Intangible drilling cost adjustments Mining exploration and drilling cost adjustments Research and experimental cost differences Long-term contract differences Qualified small business stock: enter 42% of the amount excluded under section 1202.
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