Instructions for IRS Form 1041 Instructions for IRS Form 1041 Schedule I - Alternative Minimum Tax - Estates and Trusts 2018

January 1, 2018 "Instructions For Irs Form 1041 Schedule I - Alternative Minimum Tax - Estates And Trusts" contain the latest filing requirements for the IRS-issued Form 1041. Download your copy of the instructions by clicking the link below.

IRS Form 1041 is a tax form issued by the United States Internal Revenue Service.

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2018
Department of the Treasury
Internal Revenue Service
Instructions for Schedule I
(Form 1041)
Alternative Minimum Tax—Estates and Trusts
Therefore, you should keep records of
Section references are to the Internal Revenue
General Instructions
Code unless otherwise noted.
these different carryforward and
carryback amounts for the AMT and
Future Developments
Purpose of Schedule
regular tax. The AMT carryforward will
For the latest information about
be important in completing Schedule I
Use Schedule I (Form 1041) to figure:
developments related to Schedule I and
for 2019.
The estate's or trust's alternative
its instructions, such as legislation
minimum taxable income;
Credit for Prior Year Minimum
enacted after they were published, go to
The income distribution deduction on
Tax
IRS.gov/Form1041.
a minimum tax basis; and
Estates and trusts that paid AMT in
The estate's or trust's alternative
What's New
2017, or had a minimum tax credit
minimum tax (AMT).
carryforward from the 2017 Form 8801,
AMT tax brackets. The threshold for
Who Must Complete
Credit for Prior Year Minimum
the 28% AMT tax bracket increased to
Tax—Individuals, Estates, and Trusts,
Schedule I (Form 1041)
amounts over $191,100.
may be eligible for a minimum tax credit
Complete Parts I and II if the estate or
AMT exemption amount and phase-
in 2018. See Form 8801.
trust is required to complete Form 1041,
out. The AMT exemption amount
Partners and Shareholders
Schedule B, Income Distribution
increased to $24,600. The exemption
Deduction.
An estate or trust that is a partner in a
amount begins to be phased-out at
Complete Schedule I if the estate's or
partnership or a shareholder in an S
amounts over $81,900 and is
trust's share of alternative minimum
corporation must take into account its
completely phased-out at $180,300.
taxable income (Part I, line 29) exceeds
share of items of income and
Capital gains and qualified divi-
$24,600.
deductions that enter into the
dends. For tax year 2018, the 20%
Complete Schedule I if the estate or
computation of its adjustments and tax
maximum capital gains rate applies to
trust claims any general business credit
preference items.
estates and trusts with income above
and line 6 of Part I or line 3 of Part III of
Allocation of Deductions to
$12,700. The 0% and 15% rates
Form 3800, General Business Credit, is
continue to apply to certain threshold
Beneficiaries
more than zero.
amounts. The 0% rate applies to
The distributable net alternative
Recordkeeping
amounts up to $2,600. The 15% rate
minimum taxable income (DNAMTI) of
applies to amounts over $2,600 and up
Schedule I contains adjustments and
the estate or trust doesn't include
to $12,700.
tax preference items that are treated
amounts of depreciation, depletion, and
differently for regular tax and AMT
Opportunity zone exclusion. You
amortization that are allocated to the
purposes. If you, as fiduciary for the
may need to make an adjustment to the
beneficiaries, just as the distributable
estate or trust, completed a form to
capital gain you deferred from income
net income of the estate or trust doesn't
figure an item for regular tax purposes,
for regular tax as a result of investing in
include these items for regular tax
you may have to complete it a second
a qualified opportunity fund. See
Line 13
purposes.
time for AMT purposes. Generally, the
Disposition of
Property, later.
difference between the amounts on the
Report separately in box 12 of
Excess business loss limitation.
two forms is the AMT adjustment or tax
Schedule K-1 (Form 1041),
You may need to make an adjustment to
preference item to enter on Schedule I.
Beneficiary's Share of Income,
the amount you included in income for
Except for Form 1116, Foreign Tax
Deductions, Credits, etc., any
regular tax as a result of this limitation
Credit (Individual, Estate, or Trust), any
adjustments or tax preference items
when determining alternative minimum
additional form completed for AMT
attributable to accelerated depreciation
taxable income (AMTI). See
Excess
purposes doesn't have to be filed with
(code G), depletion (code H), and
business loss
limitation, later.
Form 1041.
amortization (code I) that were allocated
to the beneficiaries.
Business interest limitation. You
For regular tax purposes, some
may need to make an adjustment to the
deductions and credits may result in
Optional Write-Off for Certain
amount of business interest you
carrybacks or carryforwards to other tax
Expenditures
deducted for regular tax as a result of
years. Examples are investment interest
There is no AMT adjustment for the
this limitation when determining AMTI.
expense, a net operating loss deduction
See
Business interest
limitation, later.
following items if the estate or trust
(NOLD), a capital loss, and the foreign
tax credit. Because these items may be
elects to deduct them ratably over the
period of time shown for the regular tax.
refigured for the AMT, the carryback or
Circulation expenditures—3 years
carryforward amount may be different
for regular and AMT purposes.
(section 173).
Jan 15, 2019
Cat. No. 51559W
2018
Department of the Treasury
Internal Revenue Service
Instructions for Schedule I
(Form 1041)
Alternative Minimum Tax—Estates and Trusts
Therefore, you should keep records of
Section references are to the Internal Revenue
General Instructions
Code unless otherwise noted.
these different carryforward and
carryback amounts for the AMT and
Future Developments
Purpose of Schedule
regular tax. The AMT carryforward will
For the latest information about
be important in completing Schedule I
Use Schedule I (Form 1041) to figure:
developments related to Schedule I and
for 2019.
The estate's or trust's alternative
its instructions, such as legislation
minimum taxable income;
Credit for Prior Year Minimum
enacted after they were published, go to
The income distribution deduction on
Tax
IRS.gov/Form1041.
a minimum tax basis; and
Estates and trusts that paid AMT in
The estate's or trust's alternative
What's New
2017, or had a minimum tax credit
minimum tax (AMT).
carryforward from the 2017 Form 8801,
AMT tax brackets. The threshold for
Who Must Complete
Credit for Prior Year Minimum
the 28% AMT tax bracket increased to
Tax—Individuals, Estates, and Trusts,
Schedule I (Form 1041)
amounts over $191,100.
may be eligible for a minimum tax credit
Complete Parts I and II if the estate or
AMT exemption amount and phase-
in 2018. See Form 8801.
trust is required to complete Form 1041,
out. The AMT exemption amount
Partners and Shareholders
Schedule B, Income Distribution
increased to $24,600. The exemption
Deduction.
An estate or trust that is a partner in a
amount begins to be phased-out at
Complete Schedule I if the estate's or
partnership or a shareholder in an S
amounts over $81,900 and is
trust's share of alternative minimum
corporation must take into account its
completely phased-out at $180,300.
taxable income (Part I, line 29) exceeds
share of items of income and
Capital gains and qualified divi-
$24,600.
deductions that enter into the
dends. For tax year 2018, the 20%
Complete Schedule I if the estate or
computation of its adjustments and tax
maximum capital gains rate applies to
trust claims any general business credit
preference items.
estates and trusts with income above
and line 6 of Part I or line 3 of Part III of
Allocation of Deductions to
$12,700. The 0% and 15% rates
Form 3800, General Business Credit, is
continue to apply to certain threshold
Beneficiaries
more than zero.
amounts. The 0% rate applies to
The distributable net alternative
Recordkeeping
amounts up to $2,600. The 15% rate
minimum taxable income (DNAMTI) of
applies to amounts over $2,600 and up
Schedule I contains adjustments and
the estate or trust doesn't include
to $12,700.
tax preference items that are treated
amounts of depreciation, depletion, and
differently for regular tax and AMT
Opportunity zone exclusion. You
amortization that are allocated to the
purposes. If you, as fiduciary for the
may need to make an adjustment to the
beneficiaries, just as the distributable
estate or trust, completed a form to
capital gain you deferred from income
net income of the estate or trust doesn't
figure an item for regular tax purposes,
for regular tax as a result of investing in
include these items for regular tax
you may have to complete it a second
a qualified opportunity fund. See
Line 13
purposes.
time for AMT purposes. Generally, the
Disposition of
Property, later.
difference between the amounts on the
Report separately in box 12 of
Excess business loss limitation.
two forms is the AMT adjustment or tax
Schedule K-1 (Form 1041),
You may need to make an adjustment to
preference item to enter on Schedule I.
Beneficiary's Share of Income,
the amount you included in income for
Except for Form 1116, Foreign Tax
Deductions, Credits, etc., any
regular tax as a result of this limitation
Credit (Individual, Estate, or Trust), any
adjustments or tax preference items
when determining alternative minimum
additional form completed for AMT
attributable to accelerated depreciation
taxable income (AMTI). See
Excess
purposes doesn't have to be filed with
(code G), depletion (code H), and
business loss
limitation, later.
Form 1041.
amortization (code I) that were allocated
to the beneficiaries.
Business interest limitation. You
For regular tax purposes, some
may need to make an adjustment to the
deductions and credits may result in
Optional Write-Off for Certain
amount of business interest you
carrybacks or carryforwards to other tax
Expenditures
deducted for regular tax as a result of
years. Examples are investment interest
There is no AMT adjustment for the
this limitation when determining AMTI.
expense, a net operating loss deduction
See
Business interest
limitation, later.
following items if the estate or trust
(NOLD), a capital loss, and the foreign
tax credit. Because these items may be
elects to deduct them ratably over the
period of time shown for the regular tax.
refigured for the AMT, the carryback or
Circulation expenditures—3 years
carryforward amount may be different
for regular and AMT purposes.
(section 173).
Jan 15, 2019
Cat. No. 51559W
Line 7—Net Operating Loss
Research and experimental
and investment expenses from private
expenditures—10 years (section
activity bonds issued after August 7,
Deduction
174(a)).
1986.
Enter any NOLD from line 15b of page 1
Intangible drilling costs—60 months
When completing line 4g of the AMT
of the Form 1041 as a positive amount.
(section 263(c)).
Form 4952, enter the smaller of:
Mining exploration and development
Line 8—Interest From Specified
The amount from line 4g of the
costs—10 years (sections 616(a) and
Private Activity Bonds Exempt
regular tax Form 4952, or
617(a)).
The total of lines 4b and 4e of the
From the Regular Tax
AMT Form 4952.
The election must be made in the
Enter the interest earned from specified
year the expenditure was made and
Step 4. Complete Part III.
private activity bonds reduced (but not
may be revoked only with IRS consent.
below zero) by any deduction that would
Enter on Schedule I, line 2 the
See section 59(e) and Regulations
have been allowable if the interest were
difference between line 8 of the AMT
section 1.59-1 for more details.
includible in gross income for regular tax
Form 4952 and line 8 of the regular tax
purposes. Each payer of this type of
Form 4952. If the AMT deduction is
Specific Instructions
interest should send a Form 1099-INT,
greater, enter the difference as a
Interest Income, to the estate or trust
negative amount.
Part I—Estate's or Trust's
showing the amount of this interest in
Line 3—Taxes
box 9. Generally, specified private
Share of Alternative
Enter any state or local real property
activity bonds are any qualified bonds
Minimum Taxable Income
taxes; state or local personal property
(as defined in section 141) issued after
taxes; state and local general sales
August 7, 1986, and before 2009 or
Line 2—Interest
taxes; and any state, local, or foreign
after 2010, the interest on which isn't
In determining the alternative minimum
income taxes that were included on
includible in gross income for the
taxable income, qualified residence
Form 1041, page 1, line 11.
regular tax. See section 57(a)(5) for
interest (other than qualified housing
more information.
Line 5—Refund of Taxes
interest defined in section 56(e)) isn't
Don’t include interest on qualified
Enter any refunds received in 2018 of
allowed.
Gulf Opportunity Zone bonds described
taxes described for line 3 above and
If you completed Form 4952,
in section 1400N(a) or qualified
included in income. Also, include
Investment Interest Expense Deduction,
Midwestern disaster area bonds.
foreign real property taxes that were
for regular tax purposes, you may have
deducted in years prior to 2018, but
an adjustment on this line. Refigure your
Exempt-interest dividends paid by a
refunded in 2018 and included in
investment interest expense on a
regulated investment company are
income on Form 1041.
separate AMT Form 4952 as follows.
treated as interest from specified private
Line 6—Depletion
activity bonds to the extent the
Step 1. On line 1 of the AMT Form
dividends are attributable to interest on
Refigure the depletion deduction for
4952, follow the instructions for that line,
the bonds received by the company,
AMT purposes by using only the income
but also include the following amounts.
minus an allocable share of the
and deductions allowed for the AMT
Any qualified residence interest
expenses paid or incurred by the
when refiguring the limit based on
(other than qualified housing interest)
company in earning the interest. This
taxable income from the property under
that was paid or accrued on a loan or
amount should also be reported to the
section 613(a) and the limit based on
part of a loan that is allocable to
estate or trust on Form 1099-DIV in
taxable income, with certain
property held for investment as defined
box 12.
adjustments, under section 613A(d)(1).
in section 163(d)(5) (for example,
Also, the depletion deduction for mines,
Line 9—Qualified Small
interest on a home equity loan whose
wells, and other natural deposits under
proceeds were invested in stocks or
Business Stock
section 611 is limited to the property's
bonds).
If the estate or trust claimed the
adjusted basis at the end of the year, as
Any interest that would have been
exclusion under section 1202 for gain
refigured for the AMT, unless the estate
deductible if interest on specified private
on qualified small business stock
or trust is an independent producer or
activity bonds had been included in
acquired before September 28, 2010,
royalty owner claiming percentage
income. See the instructions for line 8
and held more than 5 years, multiply the
depletion for oil and gas wells. Figure
for the definition of specified private
excluded gain (as shown on Form 8949
this limit separately for each property.
activity bonds.
in column (g)) by 7% (.07). Enter the
When refiguring the property's adjusted
Step 2. On line 2, enter the AMT
result on line 9 as a positive amount.
basis, take into account any AMT
disallowed investment interest expense
adjustments made this year or in
Line 10—Exercise of Incentive
from 2017.
previous years that affect basis (other
Stock Options
than the current year's depletion).
Step 3. When completing Part II of the
For regular tax purposes, no income is
AMT Form 4952, refigure gross income
Enter on line 6 the difference
recognized when an incentive stock
from property held for investment, any
between the regular tax and AMT
option (as defined in section 422(b)) is
net gain from the disposition of property
deduction. If the AMT deduction is more
exercised. However, this rule doesn't
held for investment, net capital gain
than the regular tax deduction, enter the
apply for AMT purposes. Instead, the
from the disposition of property held for
difference as a negative amount.
estate or trust must generally include on
investment, and any investment
line 10 the excess, if any, of:
expenses, taking into account all AMT
adjustments and tax preference items
1. The fair market value (FMV) of
that apply. Include any interest income
the stock acquired through exercise of
-2-
2018 Instructions for Schedule I (Form 1041)
Line 14—Depreciation on
the option (determined without regard to
1. Gain or loss from the sale,
any lapse restriction) when its rights in
exchange, or involuntary conversion of
Assets Placed in Service After
the acquired stock first become
property reported on Form 4797, Sales
1986
transferable or when these rights are no
of Business Property;
This section describes when
longer subject to a substantial risk of
2. Casualty gain or loss to business
depreciation must be refigured for the
forfeiture, over
or income-producing property reported
AMT and how to figure the amount to
2. The amount paid for the stock,
on Form 4684, Casualties and Thefts;
enter on line 14.
including any amount paid for the option
3. Ordinary income from the
used to acquire the stock.
disposition of property not taken into
Don’t include on this line any
account in 1 or 2 above or on any other
depreciation adjustment from:
Even if the estate's or trust's
line on Schedule I, such as a
An activity for which the estate or
rights in the stock aren't
TIP
disqualifying disposition of stock
trust isn't at risk or income or loss from a
transferable and are subject to a
acquired in a prior year by exercising an
partnership or an S corporation if the
substantial risk of forfeiture, you may
incentive stock option; and
basis limitations under section 704(d) or
elect to include in AMT income the
1366(d) apply. Take this adjustment into
excess of the stock's FMV (determined
4. Capital gain or loss (including any
account on line 16;
without regard to any lapse restriction)
carryover that is different for the AMT)
A tax shelter farm activity. Take this
over the exercise price upon the transfer
reported on Form 8949, Sales and
adjustment into account on line 23; or
to the estate or trust of the stock
Other Dispositions of Capital Assets, or
A passive activity. Take this
acquired through exercise of the option.
Schedule D (Form 1041), Capital Gains
adjustment into account on line 15.
See section 83(b) for more details. The
and Losses.
election must be made no later than 30
What depreciation must be refigured
The $3,000 capital loss
days after the date of transfer.
for the AMT? Generally, you must
limitation for the regular tax
!
refigure depreciation for the AMT,
applies separately for the AMT.
If the estate or trust acquired stock by
CAUTION
including depreciation allocable to
exercising an option and it disposed of
inventory costs, for:
First, figure any ordinary income
that stock in the same year, the tax
Property placed in service after 1998
adjustment related to 3, earlier. Then,
treatment under the regular tax and the
that is depreciated for the regular tax
refigure Form 4684, Form 4797, Form
AMT is the same, and no adjustment is
using the 200% declining balance
8949, and Schedule D (Form 1041) for
required.
method (generally 3-, 5-, 7-, or 10-year
the AMT, if applicable, by taking into
property under the modified accelerated
account any adjustments you made this
Increase the AMT basis of any stock
cost recovery system (MACRS), except
year or in previous years that affect the
acquired through the exercise of an
for certain qualified property eligible for
estate's or trust's basis or otherwise
incentive stock option by the amount of
the special depreciation allowance
result in a different amount for AMT.
the adjustment.
(discussed later)),
When you refigure your gain or loss on
Section 1250 property placed in
Note. If a Form 3921, Exercise of an
Form 8949 for AMT, the amount of gain
service after 1998 that isn't depreciated
Incentive Stock Option Under Section
you elected to defer for regular tax
for the regular tax using the straight line
422(b), was received, it may help you
purposes due to an investment in a
method, and
figure the adjustment.
qualified opportunity fund may need to
Tangible property placed in service
be adjusted on your AMT Form 8949.
Line 11—Other Estates and
after 1986 and before 1999. If the
An adjustment may be required if the
Trusts
transitional election was made under
regular tax and AMT adjusted basis of
section 203(a)(1)(B) of the Tax Reform
If the estate or trust is the beneficiary of
the property you sold prior to your
Act of 1986, this rule applies to property
another estate or trust, enter the
investment is different.
placed in service after July 31, 1986.
adjustment for minimum tax purposes
If the estate or trust has a capital loss
from box 12, code A, Schedule K-1
What depreciation isn't refigured for
after refiguring Schedule D for the AMT,
(Form 1041).
the AMT? Don’t refigure depreciation
apply the $3,000 capital loss limitation
for the AMT for the following items.
Line 12—Electing Large
separately to the AMT loss. For each of
Residential rental property placed in
the four items listed above, figure the
Partnerships
service after 1998.
difference between the amount included
If the estate or trust is a partner in an
Nonresidential real property with a
in taxable income for the regular tax and
electing large partnership, enter on
class life of 27.5 years or more placed in
the amount included in income for the
line 12 the amount from Schedule K-1
service after 1998 that is depreciated for
AMT. Treat the difference as a negative
(Form 1065-B), Partner's Share of
the regular tax using the straight line
amount if (a) both the AMT and regular
Income (Loss) From an Electing Large
method.
tax amounts are zero or more and the
Partnership, box 6. Take into account
Other section 1250 property placed in
AMT amount is less than the regular tax
any amount from Schedule K-1 (Form
service after 1998 that is depreciated for
amount or (b) the AMT amount is a loss,
1065-B), box 5, when figuring the
the regular tax using the straight line
and the regular tax amount is a smaller
amount to enter on line 15.
method.
loss, or zero or more.
Property (other than section 1250
Line 13—Disposition of
Enter on line 13 the combined
property) placed in service after 1998
Property
adjustments for the four items earlier.
that is depreciated for the regular tax
Use this line to report any AMT
using the 150% declining balance
adjustment related to the disposition of
method or the straight line method.
property resulting from refiguring:
Property for which you elected to use
the alternative depreciation system
2018 Instructions for Schedule I (Form 1041)
-3-
Line 15—Passive Activities
(ADS) of section 168(g) for the regular
Property Placed in Service Before 1999
tax.
IF the property is...
THEN use the...
Don’t enter again elsewhere on
Qualified property that is or was
this schedule any AMT
!
Section 1250 property. Straight line method
eligible for the special depreciation
adjustment or tax preference
over 40 years.
allowance if the depreciable basis of the
CAUTION
item included on this line.
property for the AMT is the same as for
Tangible property
Straight line method
the regular tax. This applies to any
(other than section
over the property's
For AMT purposes, the rules described
1250 property)
AMT class life.
special depreciation allowance,
in section 469 apply, except that in
depreciated using
including those for qualified disaster
applying the limitations, minimum tax
straight line for the
assistance property, qualified reuse and
rules apply.
regular tax.
recycling property, qualified cellulosic
Refigure passive activity gains and
biofuel plant property, qualified New
Any other tangible
150% declining
property.
balance method,
losses on an AMT basis. Refigure a
York Liberty Zone property, qualified
switching to straight
passive activity gain or loss by taking
Gulf Opportunity Zone property, and
line the first tax year it
into account all AMT adjustments or tax
Kansas disaster area qualified recovery
gives a larger
preference items that pertain to that
assistance property. The special
deduction, over the
activity.
allowance is deductible for the AMT,
property's AMT class
and there also is no adjustment required
life.
You may complete a second Form
for any depreciation figured on the
8582, Passive Activity Loss Limitations,
remaining basis of the qualified property
to determine the passive activity losses
if the depreciable basis of the property
allowed for AMT purposes, but don't
for the AMT is the same as for the
Property placed in service after
send this AMT Form 8582 to the IRS.
regular tax. Property for which an
1998. Use the same convention and
election is in effect to not have the
Enter the difference between the loss
recovery period used for the regular tax.
special allowance apply isn't qualified
reported for regular tax purposes and
For property other than section 1250
property. In addition, if you elect not to
the AMT loss, if any.
property, use the 150% declining
have any special depreciation
balance method, switching to straight
The amount of any passive
allowance apply, the property may be
line the first tax year it gives a larger
activity loss that isn't deductible
TIP
subject to an AMT adjustment for
deduction. For section 1250 property,
(and is therefore carried
depreciation if it was placed in service
use the straight line method.
forward) for AMT purposes is likely to
before 2016. It is not subject to an AMT
differ from the amount (if any) that is
How is the AMT class life deter-
adjustment for depreciation if it was
carried forward for regular tax purposes.
mined? The class life used for the AMT
placed in service after 2015.
Therefore, it is essential that you retain
isn't necessarily the same as the
Motion picture films, videotapes, or
adequate records for both AMT and
recovery period used for the regular tax.
sound recordings.
regular tax purposes.
The class lives for the AMT are listed in
Property depreciated under the
Rev. Proc. 87-56, 1987-2 C.B. 674, and
unit-of-production method or any other
Publicly traded partnerships (PTPs).
in Pub. 946, How To Depreciate
method not expressed in a term of
If the estate or trust had a loss from a
Property. Use 12 years for any tangible
years.
PTP, refigure the loss using any AMT
personal property not assigned a class
Qualified Indian reservation property.
adjustments, tax preference items, and
life.
A natural gas gathering line placed in
any AMT prior year unallowed loss.
service after April 11, 2005.
See Pub. 946 for optional tables
Line 16—Loss Limitations
that can be used to figure AMT
How is depreciation refigured for the
TIP
depreciation. Rev. Proc. 89-15,
AMT? See methods below.
If the loss is from a passive
1989-1 C.B. 816, has special rules for
activity, use line 15 instead. If
!
Property placed in service before
short tax years and for property
the loss is from a tax shelter
1999. Refigure depreciation for the
CAUTION
disposed of before the end of the
farm activity (that isn't passive), use
AMT using ADS with the same
recovery period.
line 23.
convention used for the regular tax. See
the table below for the method and
Refigure your allowable losses for AMT
How is the line 14 adjustment fig-
recovery period to use.
purposes from activities for which you
ured? Subtract the AMT deduction for
aren't at risk and basis limitations
depreciation from the regular tax
applicable to interests in partnerships
deduction and enter the result. If the
and stock in S corporations by taking
AMT deduction is more than the regular
into account your AMT adjustments and
tax deduction, enter the difference as a
tax preference items. See sections
negative amount.
59(h), 465, 704(d), and 1366(d).
In addition to the AMT adjustment to
your deduction for depreciation, you
Enter the difference between the loss
must also adjust the amount of
reported for regular tax purposes and
depreciation that was capitalized, if any,
the AMT loss. If the AMT loss is more
to account for the difference between
than the loss reported for regular tax
the rules for the regular tax and the
purposes, enter the adjustment as a
AMT. Include on this line the current
negative amount.
year adjustment to taxable income, if
any, resulting from the difference.
-4-
2018 Instructions for Schedule I (Form 1041)
Line 17—Circulation Costs
Line 22—Intangible Drilling
AMT purposes exceeds the amount
deducted for regular tax purposes, enter
Costs Preference (IDCs)
Don’t make this adjustment for
the difference as a negative amount.
expenditures for which you
!
Don’t make this adjustment for
elected the optional 3-year
If the estate or trust had a loss on
costs for which you elected the
!
CAUTION
write-off period for regular tax purposes.
property for which mining expenditures
optional 60-month write-off
CAUTION
haven't been fully amortized for the
under section 59(e) for regular tax
Circulation expenditures deducted
AMT, the AMT deduction is the smaller
purposes.
under section 173(a) for regular tax
of (a) the amount of the loss allowable
purposes must be amortized for AMT
IDCs from oil, gas, and geothermal
for the expenditures had they remained
purposes over 3 years beginning with
wells are a preference to the extent that
capitalized or (b) the remaining
the year the expenditures were paid or
the excess IDCs exceed 65% of the net
expenditures to be amortized for the
incurred.
income from the wells. Figure the
AMT.
preference for all oil and gas properties
Enter the difference between the
Line 20—Research and
separately from the preference for all
regular tax and AMT deduction. If the
Experimental Costs
geothermal properties.
AMT deduction is greater, enter the
difference as a negative amount.
Figure excess IDCs as follows:
Don’t make this adjustment for
costs paid or incurred in
!
If the estate or trust had a loss on
1. Determine the amount of the
connection with an activity in
property for which circulation
estate's or trust's IDCs allowed for the
CAUTION
which the estate or trust materially
expenditures haven't been fully
regular tax under section 263(c), but
participated under the passive activity
amortized for the AMT, the AMT
don’t include any section 263(c)
rules or for costs for which you elected
deduction is the smaller of (a) the
deduction for nonproductive wells, then
the optional 10-year write-off for
amount of the loss allowable for the
2. Subtract the amount that would
research and experimental
expenditures had they remained
have been allowed had you amortized
expenditures under section 59(e) for
capitalized or (b) the remaining
these IDCs over a 120-month period
regular tax purposes.
expenditures to be amortized for the
starting with the month the well was
AMT.
placed in production.
Research and experimental
Line 18—Long-Term Contracts
expenditures deducted under section
Cost depletion can be
174(a) for regular tax purposes
For AMT purposes, the percentage of
substituted for the amount
!
generally must be amortized for AMT
completion method of accounting
allowed using amortization over
purposes over 10 years beginning with
CAUTION
described in section 460(b) generally
120 months.
the year the expenditures were paid or
must be used. However, this rule
incurred.
Net income. Determine net income by
doesn't apply to any home construction
reducing the gross income that the
contract (as defined in section 460(e)
Enter the difference between the
estate or trust received or accrued
(6)).
amount allowed for AMT purposes and
during the tax year from all oil, gas, and
the amount allowed for regular tax
Note. Contracts described in section
geothermal wells by the deductions
purposes. If the amount for AMT
460(e)(1)(B) are subject to the simplified
allocable to those wells (reduced by the
purposes exceeds the amount allowed
method of cost allocation of section
excess IDCs). When refiguring net
for regular tax purposes, enter the
460(b)(4).
income, use only income and
difference as a negative amount.
deductions allowed for the AMT.
Enter the difference between the
If the estate or trust had a loss on
AMT and regular tax income. If the AMT
Exception. The preference for IDCs
property for which research and
income is smaller, enter the difference
from oil and gas wells doesn't apply to
experimental costs haven't been fully
as a negative amount.
taxpayers who are independent
amortized for the AMT, the AMT
producers (that is, not integrated oil
Line 19—Mining Costs
deduction is the smaller of (a) the loss
companies as defined in section 291(b)
allowable for the costs had they
(4)). However, this benefit may be
Don’t make this adjustment for
remained capitalized or (b) the
limited. First, figure the IDC preference
costs for which you elected the
!
remaining costs to be amortized for the
as if this exception didn't apply. For
optional 10-year write-off period
CAUTION
AMT.
purposes of this exception, complete
under section 59(e) for regular tax
and combine lines 1 through 23,
purposes.
Line 21—Income From Certain
including the IDC preference. If the
Installment Sales Before
Expenditures for the development or
amount of the IDC preference exceeds
exploration of a mine or certain other
January 1, 1987
40% of the total of lines 1 through 23,
mineral deposits (other than an oil, gas,
enter the excess on line 22 (the benefit
The installment method doesn't apply
or geothermal well) deducted under
of this exception is limited). Otherwise,
for AMT purposes to any nondealer
sections 616(a) and 617(a) for regular
don’t enter an amount on line 22 (the
disposition of property that occurred
tax purposes must be amortized for
estate's or trust's benefit from this
after August 16, 1986, but before the
AMT purposes over 10 years beginning
exception isn't limited).
first day of your tax year that began in
with the year the expenditures were
1987, if an installment obligation to
Line 23—Other Adjustments
paid or incurred.
which the proportionate disallowance
Enter on line 23 the total of any other
rule applied arose from the disposition.
Enter the difference between the
adjustments that apply including the
Enter on line 21 the amount of
amount allowed for AMT purposes and
following.
installment sale income that was
the amount allowed for regular tax
reported for regular tax purposes.
purposes. If the amount allowed for
2018 Instructions for Schedule I (Form 1041)
-5-

Download Instructions for IRS Form 1041 Instructions for IRS Form 1041 Schedule I - Alternative Minimum Tax - Estates and Trusts 2018

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