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source qualified dividends or foreign source capital gains

or less, (b) line 7 of that worksheet is zero, or (c) line 25 of that

(including any foreign source capital gain distributions) or losses,

worksheet is equal to or greater than line 26.

use the instructions under Step 3 to determine whether you must

You figured your 2014 tax using the Qualified Dividends and

make adjustments to those amounts before you include the

Capital Gain Tax Worksheet in the Form 1040NR instructions

amounts on line 1a or line 5 of the MTFTCE Form 1116.

and (a) line 3 of that worksheet is zero, (b) line 5 of that

worksheet is zero, or (c) line 23 of that worksheet is equal to or

Step 3. Follow the instructions below, if applicable, to determine

greater than line 24.

the amount of foreign source qualified dividends, capital gain

Line 15 or 16 of your 2014 Schedule D (Form 1040) (column

distributions, and other capital gains and losses to include on

(2) of line 18a or 19 of Schedule D (Form 1041)) is zero or a loss.

line 1a and line 5 of the MTFTCE Form 1116.

You figured your 2014 tax using Schedule D (Form 1041) and

Foreign qualified dividends. You must adjust your foreign

(a) line 22 of Schedule D minus the amount on line 4e of Form

source qualified dividends before you include those amounts on

4952 that you elected to include on line 4g of Form 4952 is zero

line 1a of the MTFTCE Form 1116 if:

or less, (b) line 27 of Schedule D is zero, or (c) line 43 of

Line 53 of Form 8801 is smaller than line 54, and

Schedule D is equal to or greater than line 44.

Line 32 of Form 8801 is greater than zero.

You figured your 2014 tax using the Schedule D Tax

But you don't need to make any adjustments if:

Worksheet in the Schedule D (Form 1040) instructions and (a)

You qualified for the adjustment exception under Qualified

line 18 of that worksheet is zero, (b) line 9 of that worksheet is

Dividends and Capital Gain Tax Worksheet (Individuals),

zero, or (c) line 43 of that worksheet is equal to or greater than

Qualified Dividends Tax Worksheet (Estates and Trusts), or

line 44.

Adjustments to foreign qualified dividends under Schedule D

You figured your 2014 tax using the Schedule D Tax

Filers, whichever applies, in the Form 1116 instructions when

Worksheet in the Schedule D (Form 1041) instructions and (a)

you completed your regular tax Form 1116 (or you would have

line 17 of that worksheet is zero, (b) line 9 of that worksheet is

qualified for that adjustment exception if you had completed a

zero, or (c) line 42 of that worksheet is equal to or greater than

regular tax Form 1116) for 2014, and

line 43.

Line 32 of Form 8801 isn't more than $182,500 ($91,250 if

You weren't required to make adjustments to your foreign

married filing separately for 2014 or if you checked filing status

source qualified dividends under the rules described earlier (or

box 3, 4, or 5 on Form 1040NR for 2014).

you wouldn't have been required to make those adjustments if

you had foreign source qualified dividends).

To adjust your foreign source qualified dividends, multiply

your foreign source qualified dividends in each separate

Use Worksheet B if you:

category by 0.5357 (instead of 0.3788) if the foreign source

Can't use Worksheet A,

qualified dividends are taxed at a rate of 15%, and by 0.7143

Had 2014 foreign source capital gains and losses in no more

(instead of 0.5051) if they are taxed at a rate of 20%. If you have

than two separate categories,

foreign source qualified dividends that are taxed at a rate of 0%,

Didn't have any item of unrecaptured section 1250 gain or

you adjust them by not including them on line 1a of MTFTCE

28% rate gain or loss, and

Form 1116. Include the results on line 1a of the applicable

Didn't have any capital gains taxed at a rate of 0% or 20%.

MTFTCE Form 1116. But don't adjust the amount of any foreign

Instructions for Worksheets A and B. When you complete

source qualified dividend you elected to include on line 4g of

Worksheet A or Worksheet B, don't use any foreign source

Form 4952.

capital gains you elected to include on line 4g of Form 4952. Use

Individuals with capital gain distributions only. If you had

0.5357 instead of 0.3788 to complete lines 11, 13, and 15 of

no 2014 capital gains or losses other than capital gain

Worksheet B and to complete lines 8, 11, and 17 of the Line 15

distributions from box 2a of Form(s) 1099-DIV or substitute

Worksheet for Worksheet B.

statement(s), you must adjust your foreign source capital gain

If you don't qualify to use Worksheet A or Worksheet B, use

distributions before you include those amounts on line 1a of the

the instructions for Capital Gains and Losses in Pub. 514,

MTFTCE Form 1116 if you are required to adjust your foreign

Foreign Tax Credit for Individuals, to determine the adjustments

source qualified dividends under the rules just described or you

you make.

would be required to adjust your foreign source qualified

Step 4. Complete lines 9 through 14 of the MTFTCE Form

dividends if you had any.

1116. For line 9, use the same amount you entered on that line

To adjust your foreign source capital gain distributions,

for 2014 for the regular tax. Use your MTFTCE carryover, if any,

multiply your foreign source capital gain distributions in each

on line 10.

separate category by 0.5357 (instead of 0.3788) if the foreign

source capital gain distributions are taxed at a rate of 15%, and

Step 5. If you didn't figure your 2014 AMTFTC using the

by 0.7143 (instead of 0.5051) if they are taxed at a rate of 20%. If

simplified limitation election, complete lines 15 through 17 of the

you have foreign source capital gain distributions that are taxed

MTFTCE Form 1116.

at a rate of 0%, you adjust them by not including them on line 1a

Step 6. If you didn't complete Part III of Form 8801, enter the

of MTFTCE Form 1116. Include the results on line 1a of the

amount from Form 8801, line 4, on line 18 of the MTFTCE Form

applicable MTFTCE Form 1116. But don't adjust the amount of

1116 and go to Step 7. If you completed Part III of Form 8801,

any foreign source capital gain distribution you elected to include

you must complete, for the MTFTCE, the Worksheet for Line 18

on line 4g of Form 4952.

in the Form 1116 instructions to determine the amount to enter

Other capital gains or losses. Use Worksheet A in the

on line 18 of the MTFTCE Form 1116 if:

instructions for the 2014 Form 1116 to determine the

Line 53 of Form 8801 is smaller than line 54, and

adjustments you must make to your foreign source capital gains

Line 32 of Form 8801 is greater than zero.

or losses if you have foreign source capital gains or losses in no

But you don't need to complete the Worksheet for Line 18 if:

more than two separate categories and any of the following

apply.

You qualified for the adjustment exception under Qualified

Dividends and Capital Gain Tax Worksheet (Individuals),

You figured your 2014 tax using the Qualified Dividends and

Qualified Dividends Tax Worksheet (Estates and Trusts), or

Capital Gain Tax Worksheet in the Form 1040 instructions and

Adjustments to foreign qualified dividends under Schedule D

(a) line 3 of that worksheet minus the amount on line 4e of Form

Filers, whichever applies, in the Form 1116 instructions when

4952 that you elected to include on line 4g of Form 4952 is zero

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Instructions for Form 8801 (2015)

Instructions For Form 8801 - Credit For Prior Year Minimum Tax-Individuals, Estates-Trusts - 2015 Page 3

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