Line 13e – Long-term contracts

For regular tax, you may have figured taxable income from a long-term contract (entered into after February 28, 1986) using the completed-contract method or another method.

For AMT, use the percentage-of-completion method described in IRC Section 460(b) to determine your taxable income from any long‑term contract, defined in IRC Section 460(f), you entered into after February 28, 1986. However, this rule does not apply to: 1) any home construction contract, as defined in IRC Section 460(e)(5), you entered into after June 20, 1988, and before 1991, if you meet the 2-year estimated completion requirement of IRC Section 460(e)(1)(B)(i) and the $10-million ceiling on average annual gross receipts requirement of IRC Section 460(e)(1)(B)(ii), or 2) any home construction contract entered into after 1990.

In the case of a contract described in IRC Section 460(e)(1), use the simplified procedures for allocating costs outlined in IRC Section 460(b)(3) to determine the percentage of completion.

Enter on line 13e the difference between the income you reported for regular tax and the income you recomputed for AMT. If the income for AMT is less than the income for regular tax, enter the difference as a negative amount.