Instructions for IRS Form 8801 Credit for Prior Year Minimum Tax - Individuals, Estates, and Trusts 2018

December 20, 2018 "Instructions For Irs Form 8801 - Credit For Prior Year Minimum Tax - Individuals, Estates, And Trusts" contain the updated filing procedures for the IRS-issued Form 8801. Download your copy of the instructions by clicking the link below.

IRS Form 8801 is tax form released and collected by the Internal Revenue Service of the United States.

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2018
Department of the Treasury
Internal Revenue Service
Instructions for Form 8801
Credit for Prior Year Minimum Tax—Individuals, Estates, and Trusts
Section references are to the Internal Revenue Code unless
line 4. Otherwise, enter on Form 8801, line 4, the amount from
otherwise noted.
Schedule I, line 29, adjusted for exclusion items that were
allocated to the beneficiary.
Future Developments
Note. If you complete Parts I and II of a 2017 Form 1041,
For the latest information about developments related to Form
Schedule I, as a worksheet to figure the amount to enter on 2018
8801 and its instructions, such as legislation enacted after they
Form 8801, line 4, don't attach that worksheet Schedule I to
were published, go to IRS.gov/Form8801.
your tax return. Instead, keep it for your records.
General Instructions
Line 2
Enter on this line the adjustments and preferences treated as
Purpose of Form
exclusion items (except the standard deduction). Exclusion
items are only the following AMT adjustments and preferences:
Use Form 8801 if you are an individual, estate, or trust to figure
itemized deductions (including any investment interest expense
the minimum tax credit, if any, for alternative minimum tax (AMT)
reported on Schedule E), certain tax-exempt interest, depletion,
you incurred in prior tax years and to figure any credit
the section 1202 exclusion, and any other adjustments related to
carryforward to 2019.
exclusion items. Don't include the standard deduction. It has
Who Should File
already been included on line 1. Combine lines 3 through 5, 7
through 9, 12, and 13 of your 2017 Form 6251. Don't include any
Complete Form 8801 if you are an individual, estate, or trust that
amount from line 15 of the 2017 Form 6251. Instead, include the
for 2017 had:
exclusion item amount from the Schedule(s) K-1 (Form 1041)
An AMT liability and adjustments or preferences other than
you received for 2017. That amount is shown in box 12 with
exclusion items,
code J. If you included on line 27 of the 2017 Form 6251 any
A credit carryforward to 2018 (on 2017 Form 8801, line 26), or
adjustments related to exclusion items, also include those
An unallowed qualified electric vehicle credit (see the
adjustments in the amount you enter on line 2. Enter the total on
instructions for line 20).
line 2.
File Form 8801 only if line 21 is more than zero.
Exclusion items on other lines. If you included any exclusion
item on a line not listed above, include that item in the amount
Specific Instructions
you enter on line 2. For example, if depletion was included on
Form 6251 as an adjustment on line 19 (passive activities)
instead of on line 9 (depletion), include it as an exclusion item in
The AMT is a separate tax that is imposed in addition to your
the amount you enter on line 2.
regular tax. It is caused by two types of adjustments and
preferences—deferral items and exclusion items. Deferral items
Line 3
(for example, depreciation) generally don't cause a permanent
Your MTCNOLD is the total of the minimum tax credit net
difference in taxable income over time. Exclusion items (for
operating loss (MTCNOL) carryovers and carrybacks to 2017.
example, the standard deduction), on the other hand, do cause
Your MTCNOL is figured as follows.
a permanent difference. The minimum tax credit is allowed only
for the AMT caused by deferral items.
Your MTCNOL is the excess of the deductions (excluding the
Part I—Net Minimum Tax on
MTCNOLD) over the income used to figure alternative minimum
taxable income (AMTI) taking into account only exclusion items.
Exclusion Items
Figure this excess with the modifications in section 172(d) taking
into account only exclusion items. (That is, the section 172(d)
modifications must be figured separately for the MTCNOL.)
Line 1—Estates and Trusts
These line 1 instructions are for estates and trusts only. If you
For example, the limitation of nonbusiness deductions to the
are filing on behalf of an estate or trust, skip lines 1 through 3 of
amount of nonbusiness income must be figured separately for
Form 8801. To figure the amount to enter on line 4 of Form 8801,
the MTCNOL using only nonbusiness income and deductions
complete Parts I and II of another 2017 Form 1041, Schedule I,
but taking into account only exclusion items. However, ignore
as a worksheet. After completing lines 1 and 7 of Schedule I,
the disallowance of the deduction for personal exemptions under
complete the rest of Part I of Schedule I by taking into account
section 172(d)(3) because it has already been taken into
only exclusion items (the amounts included on lines 2 through 6,
account to figure AMTI attributable only to exclusion items.
8, and 9, and any other adjustments related to exclusion items
To determine the amount of MTCNOL that may be carried to
included on line 23 of Schedule I). On line 24 of Schedule I, use
tax years other than 2017, apply sections 172(b)(2) and 172(d)
the minimum tax credit net operating loss deduction
with appropriate modifications to take into account only
(MTCNOLD). However, don't limit the MTCNOLD to 90% of the
exclusion items.
total of lines 1 through 23 of Schedule I. (See the instructions for
line 3 of Form 8801 for how to figure the MTCNOLD.) In Part II of
Line 4
Schedule I, complete lines 35 and 36 without taking into account
any basis adjustments arising from deferral items. If the amount
If your filing status was married filing separately for 2017 and
on Schedule I, line 29, is zero or less, enter -0- on Form 8801,
line 4 is more than $249,450, you must include an additional
Dec 20, 2018
Cat. No. 10600C
2018
Department of the Treasury
Internal Revenue Service
Instructions for Form 8801
Credit for Prior Year Minimum Tax—Individuals, Estates, and Trusts
Section references are to the Internal Revenue Code unless
line 4. Otherwise, enter on Form 8801, line 4, the amount from
otherwise noted.
Schedule I, line 29, adjusted for exclusion items that were
allocated to the beneficiary.
Future Developments
Note. If you complete Parts I and II of a 2017 Form 1041,
For the latest information about developments related to Form
Schedule I, as a worksheet to figure the amount to enter on 2018
8801 and its instructions, such as legislation enacted after they
Form 8801, line 4, don't attach that worksheet Schedule I to
were published, go to IRS.gov/Form8801.
your tax return. Instead, keep it for your records.
General Instructions
Line 2
Enter on this line the adjustments and preferences treated as
Purpose of Form
exclusion items (except the standard deduction). Exclusion
items are only the following AMT adjustments and preferences:
Use Form 8801 if you are an individual, estate, or trust to figure
itemized deductions (including any investment interest expense
the minimum tax credit, if any, for alternative minimum tax (AMT)
reported on Schedule E), certain tax-exempt interest, depletion,
you incurred in prior tax years and to figure any credit
the section 1202 exclusion, and any other adjustments related to
carryforward to 2019.
exclusion items. Don't include the standard deduction. It has
Who Should File
already been included on line 1. Combine lines 3 through 5, 7
through 9, 12, and 13 of your 2017 Form 6251. Don't include any
Complete Form 8801 if you are an individual, estate, or trust that
amount from line 15 of the 2017 Form 6251. Instead, include the
for 2017 had:
exclusion item amount from the Schedule(s) K-1 (Form 1041)
An AMT liability and adjustments or preferences other than
you received for 2017. That amount is shown in box 12 with
exclusion items,
code J. If you included on line 27 of the 2017 Form 6251 any
A credit carryforward to 2018 (on 2017 Form 8801, line 26), or
adjustments related to exclusion items, also include those
An unallowed qualified electric vehicle credit (see the
adjustments in the amount you enter on line 2. Enter the total on
instructions for line 20).
line 2.
File Form 8801 only if line 21 is more than zero.
Exclusion items on other lines. If you included any exclusion
item on a line not listed above, include that item in the amount
Specific Instructions
you enter on line 2. For example, if depletion was included on
Form 6251 as an adjustment on line 19 (passive activities)
instead of on line 9 (depletion), include it as an exclusion item in
The AMT is a separate tax that is imposed in addition to your
the amount you enter on line 2.
regular tax. It is caused by two types of adjustments and
preferences—deferral items and exclusion items. Deferral items
Line 3
(for example, depreciation) generally don't cause a permanent
Your MTCNOLD is the total of the minimum tax credit net
difference in taxable income over time. Exclusion items (for
operating loss (MTCNOL) carryovers and carrybacks to 2017.
example, the standard deduction), on the other hand, do cause
Your MTCNOL is figured as follows.
a permanent difference. The minimum tax credit is allowed only
for the AMT caused by deferral items.
Your MTCNOL is the excess of the deductions (excluding the
Part I—Net Minimum Tax on
MTCNOLD) over the income used to figure alternative minimum
taxable income (AMTI) taking into account only exclusion items.
Exclusion Items
Figure this excess with the modifications in section 172(d) taking
into account only exclusion items. (That is, the section 172(d)
modifications must be figured separately for the MTCNOL.)
Line 1—Estates and Trusts
These line 1 instructions are for estates and trusts only. If you
For example, the limitation of nonbusiness deductions to the
are filing on behalf of an estate or trust, skip lines 1 through 3 of
amount of nonbusiness income must be figured separately for
Form 8801. To figure the amount to enter on line 4 of Form 8801,
the MTCNOL using only nonbusiness income and deductions
complete Parts I and II of another 2017 Form 1041, Schedule I,
but taking into account only exclusion items. However, ignore
as a worksheet. After completing lines 1 and 7 of Schedule I,
the disallowance of the deduction for personal exemptions under
complete the rest of Part I of Schedule I by taking into account
section 172(d)(3) because it has already been taken into
only exclusion items (the amounts included on lines 2 through 6,
account to figure AMTI attributable only to exclusion items.
8, and 9, and any other adjustments related to exclusion items
To determine the amount of MTCNOL that may be carried to
included on line 23 of Schedule I). On line 24 of Schedule I, use
tax years other than 2017, apply sections 172(b)(2) and 172(d)
the minimum tax credit net operating loss deduction
with appropriate modifications to take into account only
(MTCNOLD). However, don't limit the MTCNOLD to 90% of the
exclusion items.
total of lines 1 through 23 of Schedule I. (See the instructions for
line 3 of Form 8801 for how to figure the MTCNOLD.) In Part II of
Line 4
Schedule I, complete lines 35 and 36 without taking into account
any basis adjustments arising from deferral items. If the amount
If your filing status was married filing separately for 2017 and
on Schedule I, line 29, is zero or less, enter -0- on Form 8801,
line 4 is more than $249,450, you must include an additional
Dec 20, 2018
Cat. No. 10600C
Line 11
amount on line 4. If line 4 is $418,450 or more, include an
additional $42,250 on line 4. Otherwise, include 25% of the
If for 2017 you claimed the foreign earned income exclusion,
excess of the amount on line 4 over $249,450. For example, if
housing exclusion, or housing deduction on Form 2555 or Form
the amount on line 4 is $269,450, enter $274,450 instead—the
2555-EZ, you must use the Foreign Earned Income Tax
additional $5,000 is 25% of $20,000 ($269,450 minus
Worksheet in these instructions to figure the amount to enter on
$249,450).
line 11.
Line 9
Form 1040NR. If for 2017 you filed Form 1040NR and you
reported capital gain distributions directly on Form 1040NR,
Don't enter more than the sum of your 2017 earned income plus
line 14; you reported qualified dividends on Form 1040NR,
$7,500 if you didn't file a joint return for 2017, at least one of your
line 10b; or you had a gain on both lines 15 and 16 of
parents was alive at the end of 2017, and one of the following
Schedule D (Form 1040), complete Part III of Form 8801 and
statements is true.
enter the amount from line 55 on line 11. All others, don't
1. You were under age 18 at the end of 2017.
complete Part III. Instead, if Form 8801, line 10, is $187,800 or
2. You were age 18 at the end of 2017 and didn't have
less ($93,900 or less if you checked filing status box 3, 4, or 5 on
earned income that was more than half of your support.
Form 1040NR for 2017), figure the amount to enter on line 11 by
multiplying line 10 by 26% (0.26). Otherwise, figure the amount
3. You were a full-time student at least age 19 but under age
to enter on line 11 by multiplying line 10 by 28% (0.28) and
24 at the end of 2017 and didn't have earned income that was
subtracting $3,756 ($1,878 if you checked filing status box 3, 4,
more than half of your support.
or 5 for 2017) from the result.
Certain January 1 birthdays. If you were born on January 1,
Line 12
2000, you are considered to be 18 at the end of 2017. The
limitation just described applies to you only if you didn't have
Figuring the MTFTCE. If you made an election to claim the
earned income that was more than half of your support.
foreign tax credit on your 2017 Form 1040 (or Form 1040NR)
If you were born on January 1, 1999, you are considered to
without filing Form 1116, your minimum tax foreign tax credit on
be 19 at the end of 2017. The limitation just described applies to
exclusion items (MTFTCE) is the same as the foreign tax credit
you only if you were a full-time student who didn't have earned
on your 2017 Form 1040, line 48 (or Form 1040NR, line 46).
income that was more than half of your support.
Enter that amount on Form 8801, line 12. Otherwise, your
MTFTCE is your 2017 AMT foreign tax credit (AMTFTC)
If you were born on January 1, 1994, you are considered to
refigured using only exclusion items. Figure your MTFTCE as
be 24 at the end of 2017. The limitation just described doesn't
follows.
apply to you.
Step 1. Separate your foreign source income into categories.
Line 10
See your 2017 Instructions for Form 1116 for information about
If you filed Form 1040NR for 2017 and had a net gain on the
categories of income. Complete a separate 2017 Form 1116 for
disposition of U.S. real property interests, line 10 can't be less
the MTFTCE for each separate category of income specified
than the smaller of that net gain or line 4.
above Part I of each Form 1116 you filed for 2017. Write
“MTFTCE” at the top margin of each 2017 Form 1116 that you
Foreign Earned Income Tax Worksheet—Line 11
Keep for Your Records
Before you begin:
If Form 8801, line 10, is zero, don't complete this worksheet.
1. Enter the amount from Form 8801, line 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1.
2a. Enter the amount from your (and your spouse's if filing jointly) 2017 Form 2555, lines 45
and 50, or 2017 Form 2555-EZ, line 18 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2a.
b. Enter the total amount of any itemized deductions or exclusions you couldn't claim
because they are related to excluded income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2b.
c. Subtract line 2b from line 2a. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2c.
3. Add lines 1 and 2c . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3.
4. Tax on the amount on line 3.
If for 2017 you reported capital gain distributions directly on Form 1040, line 13; or you
reported qualified dividends on Form 1040, line 9b; or you had a gain on both lines 15 and
16 of Schedule D (Form 1040), enter the amount from line 3 of this worksheet on Form
8801, line 27. Complete the rest of Part III of Form 8801. However, before completing Part
4.
III, see
Forms 2555 and
2555-EZ, later, to see if you must complete Part III with certain
modifications. Then enter the amount from Form 8801, line 55, here.
All others: If line 3 is $187,800 or less ($93,900 or less if married filing separately for
2017), multiply line 3 by 26% (0.26). Otherwise, multiply line 3 by 28% (0.28) and subtract
$3,756 ($1,878 if married filing separately for 2017) from the result.
5. Tax on the amount on line 2c. If line 2c is $187,800 or less ($93,900 or less if married filing
separately for 2017), multiply line 2c by 26% (0.26). Otherwise, multiply line 2c by 28% (0.28) and
subtract $3,756 ($1,878 if married filing separately for 2017) from the result . . . . . . . . . . . . . . . .
5.
6. Subtract line 5 from line 4. Enter the result here and on Form 8801, line 11 . . . . . . . . . . . . . . . . .
6.
-2-
Instructions for Form 8801 (2018)
complete to figure your MTFTCE. You will use these MTFTCE
MTFTCE Form 1116 if you are required to adjust your foreign
Forms 1116 to figure the MTFTCE amount to enter on line 12 of
source qualified dividends under the rules just described or you
Form 8801.
would be required to adjust your foreign source qualified
dividends if you had any.
Figuring high-taxed income. When applying the separate
categories of income, use the applicable AMT rate instead of the
To adjust your foreign source capital gain distributions,
regular tax rate to determine if any income is “high-taxed.”
multiply your foreign source capital gain distributions in each
separate category by 0.5357 (instead of 0.3788) if the foreign
Step 2. Complete Part I of each MTFTCE Form 1116 using only
source capital gain distributions are taxed at a rate of 15%, and
taxable income and exclusion items that are attributable to
by 0.7143 (instead of 0.5051) if they are taxed at a rate of 20%.
sources outside the United States. See Foreign source qualified
Include the results on line 1a of the applicable MTFTCE Form
dividends and capital gains (losses) below for possible
1116.
adjustments.
You adjust your foreign source capital gain distributions taxed
Simplified limitation election. If you figured your 2017
at a rate of 0% by not including them on line 1a of MTFTCE
AMTFTC using the simplified limitation election, skip Part I and
Form 1116.
go to Step 3,
Simplified limitation
election.
For individuals, the amounts taxed at the 0% rate are on
Foreign source qualified dividends and capital gains (los-
line 11 of the Qualified Dividends and Capital Gain Tax
ses). If you had any 2017 foreign source qualified dividends or
Worksheet in the 2017 Form 1040 instructions, line 9 of the
foreign source capital gains (including any foreign source capital
Qualified Dividends and Capital Gain Tax Worksheet in the 2017
gain distributions) or losses, use the following instructions to
Form 1040NR instructions, or line 20 of the Schedule D Tax
determine whether you must make adjustments to those
Worksheet in the 2017 Schedule D (Form 1040) instructions.
amounts before you include the amounts on line 1a or line 5 of
the MTFTCE Form 1116.
For estates and trusts, the amounts taxed at the 0% tax rate
are found on line 19 of the Schedule D Tax Worksheet in the
Foreign qualified dividends. You must adjust your foreign
2017 Schedule D (Form 1041) instructions, or line 8 of the
source qualified dividends before you include those amounts on
Qualified Dividends Tax Worksheet in the 2017 Form 1041
line 1a of the MTFTCE Form 1116 if:
instructions, whichever applies.
Line 53 of Form 8801 is smaller than line 54, and
Line 32 of Form 8801 is greater than zero.
Don’t adjust the amount of any foreign source capital
But you don't need to make any adjustments if:
gain distribution you elected to include on line 4g of
!
You qualified for the adjustment exception under Qualified
Form 4952.
CAUTION
Dividends and Capital Gain Tax Worksheet (Individuals),
Other capital gains or losses. Use Worksheet A in the
Qualified Dividends Tax Worksheet (Estates and Trusts), or
instructions for the 2017 Form 1116 to determine the
Adjustments to foreign qualified dividends under Schedule D
adjustments you must make to your foreign source capital gains
Filers, whichever applies, in the Instructions for Form 1116 when
or losses if you have foreign source capital gains or losses in no
you completed your regular tax Form 1116 (or you would've
more than two separate categories and any of the following
qualified for that adjustment exception if you had completed a
apply.
regular tax Form 1116) for 2017; and
You weren't required to make adjustments to your foreign
Line 32 of Form 8801 isn't more than $187,800 ($93,900 if
source qualified dividends under the rules described earlier (or
married filing separately for 2017 or if you checked filing status
you wouldn't have been required to make those adjustments if
box 3, 4, or 5 on Form 1040NR for 2017).
you had foreign source qualified dividends).
To adjust your foreign source qualified dividends, multiply
Line 15 or 16 of your 2017 Schedule D (Form 1040) (column
your foreign source qualified dividends in each separate
(2) of line 18a or 19 of Schedule D (Form 1041)) is zero or a loss.
category by 0.5357 (instead of 0.3788) if the foreign source
You figured your 2017 tax using the Qualified Dividends and
qualified dividends are taxed at a rate of 15%, and by 0.7143
Capital Gain Tax Worksheet in the Form 1040 instructions and
(instead of 0.5051) if they are taxed at a rate of 20%. Include the
(a) line 3 of that worksheet minus the amount on line 4e of Form
results on line 1a of the applicable MTFTCE Form 1116.
4952 that you elected to include on line 4g of Form 4952 is zero
You adjust your foreign source qualified dividends taxed at a
or less, (b) line 7 of that worksheet is zero, or (c) line 25 of that
rate of 0% by not including them on line 1a of MTFTCE Form
worksheet is equal to or greater than line 26.
1116.
You figured your 2017 tax using the Qualified Dividends and
Capital Gain Tax Worksheet in the Form 1040NR instructions
For individuals, the amounts taxed at the 0% rate are on
and (a) line 3 of that worksheet is zero, (b) line 5 of that
line 11 of the Qualified Dividends and Capital Gain Tax
worksheet is zero, or (c) line 23 of that worksheet is equal to or
Worksheet in the 2017 Form 1040 instructions, line 9 of the
greater than line 24.
Qualified Dividends and Capital Gain Tax Worksheet in the 2017
You figured your 2017 tax using the Schedule D Tax
Form 1040NR instructions, or line 20 of the Schedule D Tax
Worksheet in the Schedule D (Form 1040) instructions and (a)
Worksheet in the 2017 Schedule D (Form 1040) instructions.
line 18 of that worksheet is zero, (b) line 9 of that worksheet is
For estates and trusts, the amounts taxed at the 0% tax rate
zero, or (c) line 43 of that worksheet is equal to or greater than
are found on line 19 of the Schedule D Tax Worksheet in the
line 44.
2017 Schedule D (Form 1041) instructions, or line 8 of the
You figured your 2017 tax using Schedule D (Form 1041) and
Qualified Dividends Tax Worksheet in the 2017 Form 1041
(a) line 27 of Schedule D is zero, (b) line 22 of Schedule D minus
instructions, whichever applies.
the amount on line 4e of Form 4952 that you elected to include
on line 4g of Form 4952 is zero or less, or (c) line 43 of
Don’t adjust the amount of any foreign source qualified
Schedule D is equal to or greater than line 44.
dividend you elected to include on line 4g of Form 4952.
!
You figured your 2017 tax using the Schedule D Tax
CAUTION
Worksheet in the Schedule D (Form 1041) instructions and (a)
Individuals with capital gain distributions only. If you had
line 17 of that worksheet is zero, (b) line 9 of that worksheet is
no 2017 capital gains or losses other than capital gain
zero, or (c) line 42 of that worksheet is equal to or greater than
distributions from box 2a of Form(s) 1099-DIV or substitute
line 43.
statement(s), you must adjust your foreign source capital gain
distributions before you include those amounts on line 1a of the
Use Worksheet B in the 2017 Form 1116 instructions if you:
-3-
Instructions for Form 8801 (2018)
Can't use Worksheet A,
8. Multiply line 8 of the worksheet by 0.4643 (instead of
Had 2017 foreign source capital gains and losses in no more
0.6212). Enter the result on line 9 of the worksheet.
than two separate categories,
9. Enter the amount from Form 8801, line 38, on line 10 of
Didn't have any item of unrecaptured section 1250 gain or
the worksheet.
28% rate gain or loss, and
10. Complete lines 11 and 12 of the worksheet as instructed
Didn't have any capital gains taxed at a rate of 0% or 20%.
on the worksheet.
Instructions for Worksheets A and B. When you complete
11. Enter the amount from your MTFTCE Worksheet for
Worksheet A or Worksheet B, don't use any foreign source
Line 18 on your MTFTCE Form 1116, line 18.
capital gains you elected to include on line 4g of Form 4952. Use
0.5357 instead of 0.3788 to complete lines 11, 13, and 15 of
Step 5. Enter the amount from Form 8801, line 11, on the
Worksheet B and to complete lines 8, 11, and 17 of the Line 15
MTFTCE Form 1116, line 20. Complete lines 19, 21, and 22 of
Worksheet for Worksheet B.
the MTFTCE Form 1116.
If you don't qualify to use Worksheet A or Worksheet B, use
Step 6. Complete Part IV of the first MTFTCE Form 1116 only.
the instructions for Capital Gains and Losses in Pub. 514,
Foreign Tax Credit for Individuals, to determine the adjustments
Enter the amount from that MTFTCE Form 1116, line 30, on
you make. Also see the 2017 Instructions for Form 6251 for
Form 8801, line 12.
information on rate substitutions that would apply when
determining those adjustments.
Note. Keep all Forms 1116 you used to figure your MTFTCE,
but don't attach them to your tax return.
Step 3. Complete lines 9 through 17 of the MTFTCE Form
If line 14 of the MTFTCE Form 1116 is greater than line 21 of
1116. For line 9, use the same amount you entered on that line
the MTFTCE Form 1116, keep a record of the difference. This
for 2017 for the regular tax. Use your MTFTCE carryover, if any,
amount is carried forward and used to figure your MTFTCE next
on line 10.
year.
Simplified limitation election. If you figured your 2017
Part II—Minimum Tax Credit and
AMTFTC using the simplified limitation election, complete lines 9
through 14 of the MTFTCE Form 1116. For line 9, use the same
Carryforward to 2019
amount you entered on that line for 2017 for the regular tax. Use
your MTFTCE carryover, if any, on line 10. Enter on line 17 the
same amount you entered on that line for the 2017 AMT Form
Line 20
1116.
Enter any qualified electric vehicle credit not allowed for 2017
Step 4. Enter the amount from Form 8801, line 4, on line 18 of
solely because of the limitation under section 30(b)(3)(B) (as in
the MTFTCE Form 1116 and go to
Step 5
unless you must
effect prior to the amendment of section 30 by Public Law 111-5,
complete an MTFTCE Worksheet for Line 18. In most cases, you
the American Recovery and Reinvestment Tax Act of 2009).
must complete an MTFTCE Worksheet for Line 18 if you
Line 21
completed Part III of Form 8801 and:
Line 53 of Form 8801 is smaller than line 54, and
If line 21 is zero or less, you don't have a minimum tax credit or a
Line 32 of Form 8801 is greater than zero.
credit carryforward. Don't complete the rest of this form and don't
But even if you meet the requirements above, you don't need
file it.
to complete an MTFTCE Worksheet for Line 18 if:
Line 22
You qualified for the adjustment exception under Qualified
Dividends and Capital Gain Tax Worksheet (Individuals),
Follow the instructions below and refer to your 2018 income tax
Qualified Dividends Tax Worksheet (Estates and Trusts), or
return to figure the amount to enter on line 22.
Adjustments to foreign qualified dividends under Schedule D
Form 1040. Add the amounts from Form 1040, line 11a and
Filers, whichever applies, in the Instructions for Form 1116 when
Schedule 2 (Form 1040), line 46. Subtract from the result the
you completed your regular tax Form 1116 (or you would've
total of any credits from Form 1040, line 12a and Schedule 3
qualified for that adjustment exception if you had completed a
(Form 1040), lines 48 through 51, 53, and 54 (not including any
regular tax Form 1116) for 2017; and
credit for prior year minimum tax or any credit claimed on Form
Line 32 of Form 8801 isn't more than $187,800 ($93,900 if
8912). Enter the result. If the result is zero or less, enter -0-.
married filing separately for 2017 or if you checked filing status
box 3, 4, or 5 on Form 1040NR for 2017).
Form 1040NR. Add the amounts on lines 42 and 44 of Form
Instructions for MTFTCE Worksheet for Line 18. If you
1040NR. Subtract from the result the total of any credits on lines
must complete an MTFTCE Worksheet for Line 18 for your
46 through 51 (not including any credit for prior year minimum
MTFTCE Form 1116, you will use the Worksheet for Line 18 in
tax or any credit claimed on Form 8912). Enter the result. If the
the Instructions for Form 1116 and do the following.
result is zero or less, enter -0-.
1. Enter the amount from Form 8801, line 4, on line 1 of the
Form 1041, Schedule G. Add the credits on lines 2a and 2b,
worksheet.
plus any write-in credits on line 2e. Subtract the result from the
2. Skip lines 2 and 3 of the worksheet.
total of lines 1a and 1b. Enter the result. If the result is zero or
less, enter -0-.
3. Enter the amount from Form 8801, line 51, on line 4 of the
worksheet.
Part III—Tax Computation Using
4. Multiply line 4 of the worksheet by 0.1071 (instead of
Maximum Capital Gains Rates
0.3687). Enter the result on line 5 of the worksheet.
5. Enter the amount from Form 8801, line 48, on line 6 of the
If your 2017 taxable income was zero or less, enter -0- on Form
worksheet.
8801, line 35. You also must take one of the following actions,
whichever applies to you, before completing lines 28, 29, and 30
6. Multiply line 6 of the worksheet by 0.2857 (instead of
of Part III.
0.4949). Enter the result on line 7 of the worksheet.
7. Enter the amount from Form 8801, line 45, on line 8 of the
worksheet.
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Instructions for Form 8801 (2018)
Complete lines 2 through 6 of the Qualified Dividends and
Also see the instructions for line 35.
Capital Gain Tax Worksheet in the 2017 Instructions for Form
Line 33
1040.
Complete lines 2 through 4 of the Qualified Dividends and
If for 2017 you filed Form 1040NR and Form 8801, line 32, is
Capital Gain Tax Worksheet in the 2017 Instructions for Form
$187,800 or less ($93,900 or less if you checked filing status
1040NR.
box 3, 4, or 5 on Form 1040NR for 2017), multiply line 32 by
Complete lines 2 through 13 of the Schedule D Tax
26% (0.26). Otherwise, multiply line 32 by 28% (0.28) and
Worksheet in the 2017 Instructions for Schedule D (Form 1040)
subtract $3,756 ($1,878 if you checked filing status box 3, 4, or 5
or the 2017 Instructions for Schedule D (Form 1041), whichever
on Form 1040NR for 2017) from the result.
applies.
Complete lines 2 through 4 of the Qualified Dividends Tax
Line 34
Worksheet in the 2017 Instructions for Form 1041.
If for 2017 you filed Form 1040NR, enter $37,950 ($75,900 if
Complete lines 22 through 26 of the 2017 Schedule D (Form
you checked filing status box 6 on Form 1040NR for 2017).
1041).
To determine which worksheet or form above applies to you, see
Line 35
the 2017 Instructions for Form 1040, line 44; Form 1040NR,
If for 2017 you filed Form 1040NR, enter on Form 8801, line 35,
line 42; or Form 1041, Schedule G, line 1a.
the amount from line 5 of your 2017 Qualified Dividends and
Lines 28, 29, and 30
Capital Gain Tax Worksheet in the instructions for Form
1040NR, line 42, or the amount from line 14 of your 2017
Follow the instructions below to figure the amounts to enter on
Schedule D Tax Worksheet in the 2017 Instructions for
lines 28, 29, and 30 if, for 2017:
Schedule D (Form 1040), whichever applies. If you didn't
1. You filed Form 1040NR and didn't use the Schedule D
complete either worksheet, enter the amount from Form
Tax Worksheet to figure your tax,
1040NR, line 41; if zero or less, enter -0-.
2. You filed Form 1041 and didn't use the Schedule D Tax
Forms 2555 and 2555-EZ. If you filed either Form 2555 or
Worksheet or Part V of Schedule D (Form 1041) to figure your
Form 2555–EZ for 2017, the amount you enter on line 35 will
tax, or
take into account your regular tax capital gain excess, if any, for
3. You filed Form 2555 or 2555-EZ and have an AMT capital
2017.
gain excess (defined later).
If you filed Form 2555 or Form 2555-EZ for 2017 and you
didn't complete either the Qualified Dividends and Capital Gain
Otherwise, complete lines 28, 29, and 30 following the
Tax Worksheet or the Schedule D Tax Worksheet for the regular
instructions for those lines on the form.
tax, enter the amount from line 3 of the Foreign Earned Income
Form 1040NR. If (1) above applies, enter the amount from
Tax Worksheet in the Form 1040 instructions (as figured for the
line 4 of the Qualified Dividends and Capital Gain Tax
regular tax).
Worksheet in the 2017 Form 1040NR instructions on Form 8801,
For information on regular tax capital gain excess and AMT
lines 28 and 30; skip Form 8801, line 29; and enter on Form
capital gain excess (if you filed Form 2555 or Form 2555-EZ),
8801, line 35, the amount from line 5 of that worksheet.
see Line 44 in the 2017 Instructions for Form 6251.
Estates and trusts. If (2) above applies, enter the amount from
line 4 of the Qualified Dividends Tax Worksheet in the 2017
Line 40
Form 1041 instructions on Form 8801, lines 28 and 30; skip
Form 8801, line 29; and enter on Form 8801, lines 35 and 42,
If for 2017 you filed Form 1040NR, use the following chart to
the amount from line 5 of that worksheet.
figure the amount to enter on line 40.
Forms 2555 and 2555-EZ. If you filed either of these forms for
IF you checked filing status box...
THEN enter on line 40...
2017 and you have an AMT capital gain excess, you must
complete Part III of Form 8801 with certain modifications. To see
1 or 2 $
418,400
if you have an AMT capital gain excess, subtract Form 8801,
line 10, from line 6 of your 2017 Qualified Dividends and Capital
3, 4, or 5 $
235,350
Gain Tax Worksheet or line 10 of your 2017 Schedule D Tax
6 $
470,700
Worksheet, whichever applies. If the result is more than zero,
that amount is your AMT capital gain excess.
If you have an AMT capital gain excess, figure the amounts to
Line 42
enter on lines 28, 29, and 30 of Form 8801 using the following
modifications (only for purposes of Part III of Form 8801).
Follow the instructions below to figure the amount to enter on
line 42.
1. Reduce the amount on line 3 of your 2017 Qualified
Dividends and Capital Gain Tax Worksheet or line 9 of your
Form 1040. If you didn't complete the 2017 Qualified Dividends
2017 Schedule D Tax Worksheet (but not below zero) by your
and Capital Gain Tax Worksheet or the 2017 Schedule D Tax
AMT capital gain excess.
Worksheet, enter the amount from your 2017 Form 1040,
line 43; if less than zero, enter -0-. If you didn't complete either
2. Reduce the amount on line 2 of your 2017 Qualified
2017 worksheet and you filed a 2017 Form 2555 or Form
Dividends and Capital Gain Tax Worksheet or line 6 of your
2555-EZ, enter the amount from line 3 of the Foreign Earned
2017 Schedule D Tax Worksheet (but not below zero) by any of
Income Tax Worksheet in the 2017 Form 1040 instructions.
your AMT capital gain excess not used in (1).
3. Reduce the amount on your 2017 Schedule D (Form
Form 1040NR. If you filed a 2017 Form 1040NR, enter the
1040), line 18 (but not below zero) by your AMT capital gain
amount from line 5 of your 2017 Qualified Dividends and Capital
excess.
Gain Tax Worksheet in the instructions for Form 1040NR,
line 42, or the amount from line 19 of the 2017 Schedule D Tax
4. Include your AMT capital gain excess as a loss on line 16
Worksheet in the Instructions for Schedule D (Form 1040),
of your 2017 Unrecaptured Section 1250 Gain Worksheet in the
whichever applies. If you didn't complete either 2017 worksheet,
2017 Instructions for Schedule D (Form 1040).
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Instructions for Form 8801 (2018)
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