U.S. · Form 6251 line 2k
Form 6251 line 2k disposition of property.
What the line covers, when it is negative, and the instructions' stock option example.
Line 2k is the difference between the gain or loss you report for the regular tax and the gain or loss refigured for the AMT on dispositions of property. It combines four items: Form 4797 sales, Form 4684 casualties, other ordinary income from a disposition (such as a disqualifying disposition of ISO stock) and Form 8949 or Schedule D capital gains and losses. Enter the difference as a negative amount when the AMT result is smaller.
Compute one adjustment
Result
The four items combined on line 2k
| Item | What the 2025 instructions say |
|---|---|
| Form 4797 | Gain or loss from the sale, exchange or involuntary conversion of property reported on Form 4797. |
| Form 4684 | Casualty gain or loss to business or income-producing property reported on Form 4684. |
| Other ordinary income | Ordinary income from a disposition not already covered by the first two items or by another Form 6251 line, such as a disqualifying disposition of stock acquired earlier by exercising an incentive stock option. |
| Form 8949 and Schedule D | Capital gain or loss, including any carryover that is different for the AMT. |
| Sign rule | Enter the difference as a negative when both amounts are zero or more and the AMT amount is smaller, or when the AMT amount is a loss and the regular tax amount is a smaller loss or is zero or more. |
| Capital loss limit | Apply the $3,000 capital loss limitation separately to the AMT loss; the AMT carryover can differ from the regular one. |
Why it matters
The AMT basis in property can differ from the regular tax basis, most often after an incentive stock option exercise. Refigure Form 4684, Form 4797, Form 8949 and Schedule D for the AMT, take the ordinary-income item first, and enter the combined difference. Passive activity adjustments go on line 2m, except amounts reported for the activity on Form 8949, Schedule D, Form 4684 or Form 4797, which stay on line 2k.
Worked example
The instructions walk through a single filer who exercised an ISO in 2024 and sold two blocks of 100 shares in 2025. The first sale gives a negative adjustment of $65,000 (regular ordinary income of $65,000 against $0 for the AMT). For the second, the regular tax shows a $50,000 capital gain while the AMT shows a net capital loss of $65,000, of which only $3,000 is allowed, so the adjustment is $53,000 negative. Line 2k is ($118,000), and $62,000 of AMT capital loss carries to 2026 ($22,000 short term, $40,000 long term). The calculator reproduces the second step: regular $50,000, AMT ($3,000).
What this page does not do
It subtracts two amounts you have already refigured; it does not refigure basis, apply the loss limit or build the AMT Form 8949 for you. Add the results for each item yourself before entering the total on line 2k.
Sources
- Instructions for Form 6251 (2025): Line 2k text, the sign rule and the ISO example with the $118,000 total. Read November 2, 2026.
- Form 6251 (2025): The exact wording of line 2k. Read November 2, 2026.
These are the tax year 2025 edition instructions and forms (published for returns filed in 2026). The IRS revises them each year, so thresholds, line numbers and limits can change; check the current edition before relying on a figure.
Frequently asked questions
What is Form 6251 line 2k?
The AMT adjustment for the disposition of property: the difference between the regular tax and AMT gain or loss.
What does line 2k include?
Form 4797 gains and losses, Form 4684 casualty gains and losses, other ordinary income from dispositions such as a disqualifying ISO disposition, and capital gains and losses from Form 8949 and Schedule D.
When is the line 2k adjustment negative?
When both amounts are zero or more and the AMT amount is smaller, or when the AMT amount is a loss and the regular tax amount is a smaller loss or is zero or more.
Is the $3,000 capital loss limit the same for the AMT?
It is applied separately to the AMT loss, and the amount of any capital loss carryover can differ for the AMT.
Where do passive activity adjustments go?
On line 2m. Adjustments for amounts reported on Form 8949, Schedule D, Form 4684 or Form 4797 go on line 2k instead.
Not tax or legal advice
This page summarizes IRS instructions and is not tax, legal or financial advice. A CPA, enrolled agent or the IRS can confirm what applies to your situation. Everything runs in your browser; nothing you enter is sent anywhere.