Instructions For Form 8801 - Credit For Prior Year Minimum Tax-Individuals, Estates-Trusts - 2014

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2014
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
Note. If you complete Parts I and II of a 2013 Form 1041,
otherwise noted.
Schedule I, as a worksheet to figure the amount to enter on 2014
Form 8801, line 4, do not attach that worksheet Schedule I
Future Developments
to your tax return. Instead, keep it for your records.
For the latest information about developments related to Form
Line 2
8801 and its instructions, such as legislation enacted after they
were published, go to
Enter on this line the adjustments and preferences treated as
exclusion items (except the standard deduction). Exclusion
items are only the following AMT adjustments and preferences:
General Instructions
itemized deductions (including any investment interest expense
reported on Schedule E), certain tax-exempt interest, depletion,
Purpose of Form
the section 1202 exclusion, and any other adjustments related to
Use Form 8801 if you are an individual, estate, or trust to figure
exclusion items. Do not include the standard deduction. It has
the minimum tax credit, if any, for alternative minimum tax (AMT)
already been included on line 1. Combine lines 2 through 5, 7
you incurred in prior tax years and to figure any credit
through 9, 12, and 13 of your 2013 Form 6251. Do not include
carryforward to 2015.
any amount from line 15 of the 2013 Form 6251. Instead, include
the exclusion item amount from the Schedule(s) K-1 (Form
Who Should File
1041) you received for 2013. That amount is shown in box 12
with code J. If you included on line 27 of the 2013 Form 6251
Complete Form 8801 if you are an individual, estate, or trust that
any adjustments related to exclusion items, also include those
for 2013 had:
adjustments in the amount you enter on line 2. Enter the total on
An AMT liability and adjustments or preferences other than
line 2.
exclusion items,
A credit carryforward to 2014 (on 2013 Form 8801, line 26), or
Exclusion items on other lines. If you included any exclusion
An unallowed qualified electric vehicle credit (see the
item on a line not listed above, include that item in the amount
instructions for line 20).
you enter on line 2. For example, if depletion was included on
Form 6251 as an adjustment on line 19 (passive activities)
File Form 8801 only if line 21 is more than zero.
instead of on line 9 (depletion), include it as an exclusion item in
the amount you enter on line 2.
Specific Instructions
Line 3
The AMT is caused by two types of adjustments and
Your minimum tax credit net operating loss deduction
preferences—deferral items and exclusion items. Deferral items
(MTCNOLD) is the total of the minimum tax credit net operating
(for example, depreciation) generally do not cause a permanent
loss (MTCNOL) carryovers and carrybacks to 2013. Your
difference in taxable income over time. Exclusion items (for
MTCNOL is figured as follows.
example, the standard deduction), on the other hand, do cause
Your MTCNOL is the excess of the deductions (excluding the
a permanent difference. The minimum tax credit is allowed only
MTCNOLD) over the income used to figure alternative minimum
for the AMT caused by deferral items.
taxable income (AMTI) taking into account only exclusion items.
Part I—Net Minimum Tax on
Figure this excess with the modifications in section 172(d) taking
into account only exclusion items. (That is, the section 172(d)
Exclusion Items
modifications must be figured separately for the MTCNOL.)
For example, the limitation of nonbusiness deductions to the
Line 1—Estates and Trusts
amount of nonbusiness income must be figured separately for
These line 1 instructions are for estates and trusts only. Skip
the MTCNOL using only nonbusiness income and deductions
lines 1 through 3 of Form 8801. To figure the amount to enter on
but taking into account only exclusion items. However, ignore
line 4 of Form 8801, complete Parts I and II of another 2013
the disallowance of the deduction for personal exemptions under
Form 1041, Schedule I, as a worksheet. After completing lines 1
section 172(d)(3) because it has already been taken into
and 7 of Schedule I, complete the rest of Part I of Schedule I by
account to figure AMTI attributable only to exclusion items.
taking into account only exclusion items (the amounts included
To determine the amount of MTCNOL that may be carried to
on lines 2 through 6, 8, and 9, and any other adjustments related
tax years other than 2013, apply sections 172(b)(2) and 172(d)
to exclusion items included on line 23 of Schedule I). On line 24
with appropriate modifications to take into account only
of Schedule I, use the minimum tax credit net operating loss
exclusion items.
deduction (MTCNOLD). However, do not limit the MTCNOLD to
90% of the total of lines 1 through 23 of Schedule I. (See the
Line 4
instructions for line 3 of Form 8801 for how to figure the
MTCNOLD.) In Part II of Schedule I, complete lines 35 and 36
If your filing status was married filing separately for 2013 and
without taking into account any basis adjustments arising from
line 4 is more than $238,550, you must include an additional
deferral items. If the amount on Schedule I, line 29, is zero or
amount on line 4. If line 4 is $400,150 or more, include an
less, enter -0- on Form 8801, line 4. Otherwise, enter on Form
additional $40,400 on line 4. Otherwise, include 25% of the
8801, line 4, the amount from Schedule I, line 29, adjusted for
excess of the amount on line 4 over $238,550. For example, if
exclusion items that were allocated to the beneficiary.
the amount on line 4 is $258,550, enter $263,550 instead—the
Nov 14, 2014
Cat. No. 10600C

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