Interest from private activity bonds generally is not taxable, however interest from specified private activity bonds issued after August 7. 1986 must be added as an adjustment to income for AMT purposes.
From the Main Menu of the Tax Return (Form 1040), select:
- Income Menu
- Interest or Dividends (Sch B, 8815)
- Select New, Form 1099-INT (Interest Income), and fill in the information from the Form 1099-INT
- Specified Private Activity Bond - This amount is located on Form 1099-INT, Box 9
The private activity bond interest amount will automatically carry to Form 6251 as an adjustment to the taxpayer's income for alternative minimum tax purpose.
NOTE: This is a guide on entering Private Activity Bond Interest into the TaxSLayer Pro program. This is not intended as tax advice.