U.S. · Form 6251 line 2m
Form 6251 line 2m passive activities.
Refiguring passive gains and losses for the AMT and when the adjustment is negative.
Line 2m is the difference between the passive activity income or loss that would be reported for the AMT and the amount for the regular tax. Enter it as a negative amount if the AMT loss is more than the regular tax loss, the AMT gain is less than the regular tax gain, or you have an AMT loss and a regular tax gain. Refigure the activity with an AMT Form 8582, but keep it with your records rather than filing it.
Compute one adjustment
Result
When the line 2m adjustment is negative
| Case | What the 2025 instructions say |
|---|---|
| AMT loss larger than regular tax loss | Enter the adjustment as a negative amount. |
| AMT gain smaller than regular tax gain | Enter the adjustment as a negative amount. |
| AMT loss and a regular tax gain | Enter the adjustment as a negative amount. |
| Publicly traded partnership | If you had a PTP loss, refigure it using AMT adjustments, preferences and any AMT prior-year unallowed loss. |
| Tax shelter passive farm activity | Refigure the gain or loss with AMT adjustments and prior-year unallowed losses. A gain goes on the AMT Form 8582; a loss does not, and is carried forward to 2026. |
| Insolvency | If liabilities exceed the fair market value of your assets at year end, increase the passive loss allowed by that excess, but not by more than your total loss. |
Why it matters
Passive losses are limited each year, and the amount of a disallowed loss carried forward is likely to differ between the regular tax and the AMT, so keep records for both. Where an AMT adjustment already belongs to the passive activity (for example depreciation or a disposition), the instructions have you reduce the activity's loss by it first and then refigure the allowable AMT passive loss. Adjustments for amounts reported on Form 8949, Schedule D, Form 4684 or Form 4797 go on line 2k, not 2m.
Worked example
A made-up case, not from the instructions: the regular tax shows a $4,000 passive loss and the AMT figure is a $6,000 loss. The AMT loss is larger, so the adjustment is negative $2,000. Reverse the numbers (regular loss $6,000, AMT loss $4,000) and the adjustment is positive $2,000. The instructions' own example shows how to get the AMT loss before this step: a $4,125 K-1 passive loss reduced by a $500 depreciation adjustment and a $225 disposition adjustment gives a $3,400 AMT loss to enter on the AMT Form 8582.
What this page does not do
It subtracts two amounts you have already refigured; it does not apply the passive loss rules, carryforwards or the insolvency increase. Do not file the AMT versions of Form 8582 or the other schedules.
Sources
- Instructions for Form 6251 (2025): Line 2m text, the PTP, farm and insolvency rules and the K-1 example. Read November 2, 2026.
- Form 6251 (2025): The exact wording of line 2m. 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 2m?
The AMT adjustment for passive activities: the difference between the AMT and regular tax income or loss from them.
When do I enter a negative amount on line 2m?
When the AMT loss is more than the regular tax loss, the AMT gain is less than the regular tax gain, or you have an AMT loss and a regular tax gain.
Do I file an AMT Form 8582?
No. You may fill out an AMT Form 8582 and AMT versions of related forms to figure the allowed loss, but you keep them with your records and do not file them.
Where do Form 8949 or Schedule D amounts from a passive activity go?
On line 2k, not line 2m. The same applies to Form 4684 and Form 4797 amounts.
How are tax shelter passive farm activity losses treated?
A gain goes on the AMT Form 8582. A loss does not, and is carried forward to 2026 to see whether you have a gain or loss from such activities then.
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.