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. To see if your tax-exempt interest is private activity bond interest,
refer to the Form 1099-INT or consolidated broker’s statement reporting your interest. Private
activity bond interest is reported in box 9.
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.