Alternative Minimum Tax (AMT): Form 6251

Categories: Federal Tax, IRS CE
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About Course

This two-hour continuing education course provides tax professionals with a practical understanding of the individual Alternative Minimum Tax (AMT) and its computation on Form 6251. The course is designed for enrolled agents and other tax return preparers who work with clients holding incentive stock options, private activity bonds, or other AMT preference items and adjustments.

Participants examine the historical purpose of the AMT and the AMTI computation, followed by detailed coverage of the specific preference items and adjustments most commonly encountered in practice — incentive stock options, private activity bond interest, and AMT depreciation adjustments. The course provides thorough coverage of the AMT exemption and phase-out, the deferral-versus-exclusion item distinction, and the Minimum Tax Credit computation and carryforward on Form 8801. The course concludes with the impact of the Tax Cuts and Jobs Act, current-law planning considerations, and Circular 230 due diligence standards for AMT-related advice.

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What Will You Learn?

  • Compute AMTI starting from regular taxable income using Form 6251
  • Apply the AMT adjustment for incentive stock options exercised and held, and the resulting AMT basis adjustment
  • Identify private activity bond interest and AMT depreciation adjustments and their effect on AMTI
  • Apply the AMT exemption amount and phase-out, and distinguish deferral items from exclusion items
  • Calculate the Minimum Tax Credit and apply the Form 8801 carryforward in a later year
  • Apply Circular 230 due diligence standards when advising clients on AMT-related planning

Course Content

Module 1 – AMT Fundamentals — Purpose, Form 6251, and the AMTI Computation
This module covers the historical purpose of the AMT, the parallel-tax-system structure of Form 6251, and the AMTI computation starting from regular taxable income.

  • AMT Fundamentals — Purpose, Form 6251, and the AMTI Computation

Module 2 – AMT Preference Items and Adjustments
This module addresses AMT preference items and adjustments — the ISO adjustment at exercise and later sale, private activity bond interest, AMT depreciation adjustments, and itemized/standard deduction differences.

Module 3 – AMT Exemption, Phase-Out, and the Minimum Tax Credit
This module examines the AMT exemption amount and phase-out, the deferral-versus-exclusion item distinction, the Minimum Tax Credit computation and Form 8801 carryforward, and the AMT foreign tax credit limitation.

Module 4 – TCJA Impact, Practitioner Planning, and Circular 230 Compliance
The final module covers TCJA's narrowing of individual AMT exposure, current-law planning considerations, practitioner planning strategies, common practitioner errors, and Circular 230 due diligence standards for AMT advice.

Final Assessment – Alternative Minimum Tax (AMT): Form 6251
You have completed a comprehensive review of the Alternative Minimum Tax under Form 6251, covering AMT fundamentals and the AMTI computation, preference items and adjustments, the AMT exemption and Minimum Tax Credit, and TCJA's impact along with practitioner planning and Circular 230 compliance. You are now prepared to demonstrate your understanding of the key concepts. The following final examination assesses your knowledge of the material covered in all four modules. A passing score of 70% is required to successfully complete the course.

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