Instructions For Form 8801 - Credit For Prior Year Minimum Tax-Individuals, Estates, And Trusts - 2007


2 0 07
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
(MTCNOLD). However, do not limit the MTCNOLD to 90%
of the total of lines 1 through 23 of Schedule I. (See the
otherwise noted.
instructions for line 3 on this page for how to figure the
General Instructions
MTCNOLD.) In Part II of Schedule I, complete lines 35 and
36 without taking into account any basis adjustments arising
from deferral items. If the amount on Schedule I, line 29, is
What’s New
zero or less, enter -0- on Form 8801, line 4. Otherwise,
If you have any unused minimum tax credit carryforward
enter on Form 8801, line 4, the amount from Schedule I, line
from 2004 or earlier years, you may qualify for a refundable
29, adjusted for exclusion items that were allocated to the
credit for part or all of that amount, even if the total amount
of your current year credit exceeds the tax liability limit. To
figure your current year refundable credit, complete Part IV
Line 2
of Form 8801. Estates and trusts are not allowed to claim
Enter on this line the adjustments and preferences treated
this refundable credit.
as exclusion items (except the standard deduction).
If you claimed the foreign earned income exclusion or the
Exclusion items are only the following AMT adjustments and
housing exclusion for 2006 on Form 2555 or 2555-EZ, you
preferences: itemized deductions (including any investment
must use the Foreign Earned Income Tax Worksheet to
interest expense reported on Schedule E), certain
figure the amount to enter on line 11. See the instructions
tax-exempt interest, depletion, the section 1202 exclusion,
for line 11 on page 2.
and any other adjustments related to exclusion items. Do
not include the standard deduction. It has already been
Purpose of Form
included on line 1. Combine lines 2 through 5, 7 through 9,
Use Form 8801 if you are an individual, estate, or trust to
11, and 12 of your 2006 Form 6251. Do not include any
figure the current year nonrefundable credit, if any, for
amount from line 14 of the 2006 Form 6251. Instead, include
alternative minimum tax (AMT) you incurred in prior tax
the exclusion item amount from the Schedule(s) K-1 (Form
years; to figure the current year refundable credit
1041) you received for 2006. That amount is shown in box
(individuals only), if any, for any unused credit carryforward
12 with code J. If you included on line 26 of the 2006 Form
from 2004; and to figure any credit carryforward to 2008.
6251 any adjustments related to exclusion items, also
include those adjustments in the amount you enter on line 2.
Who Should File
Enter the total on line 2.
Complete Form 8801 if you are an individual, estate, or trust
Exclusion items on other lines. If you included any
that for 2006 had:
exclusion item on a line not listed above, include that item in
An AMT liability and adjustments or preferences other
the amount you enter on line 2. For example, if depletion
than exclusion items,
was included on Form 6251 as an adjustment on line 18
A minimum tax credit carryforward to 2007, or
(passive activities) instead of on line 9 (depletion), include it
An unallowed qualified electric vehicle credit (see the
as an exclusion item in the amount you enter on line 2.
instructions for line 20).
Line 3
File Form 8801 only if line 21 is more than zero.
Your minimum tax credit net operating loss deduction
(MTCNOLD) is the total of the minimum tax credit net
operating loss (MTCNOL) carryovers and carrybacks to
Specific Instructions
2006. Your MTCNOL is figured as follows.
The AMT is caused by two types of adjustments and
Your MTCNOL is the excess of the deductions (excluding
preferences — deferral items and exclusion items. Deferral
the MTCNOLD) over the income used to figure alternative
items (for example, depreciation) generally do not cause a
minimum taxable income (AMTI) taking into account only
permanent difference in taxable income over time. Exclusion
exclusion items. Figure this excess with the modifications in
items (for example, the standard deduction), on the other
section 172(d) taking into account only exclusion items.
hand, do cause a permanent difference. The minimum tax
(That is, the section 172(d) modifications must be figured
credit is allowed only for the AMT caused by deferral items.
separately for the MTCNOL.)
Part I—Net Minimum Tax on
For example, the limitation of nonbusiness deductions to
the amount of nonbusiness income must be figured
Exclusion Items
separately for the MTCNOL using only nonbusiness income
and deductions but taking into account only exclusion items.
Line 1—Estates and Trusts
However, ignore the disallowance of the deduction for
personal exemptions under section 172(d)(3) because it has
Skip lines 1 through 3 of Form 8801. Complete Parts I and II
already been taken into account to figure AMTI attributable
of another 2006 Form 1041, Schedule I. For Part I of
only to exclusion items.
Schedule I, take into account only exclusion items (the
amounts included on lines 2 through 6, 8, and 9, and any
To determine the amount of MTCNOL that may be
other adjustments related to exclusion items included on line
carried to tax years other than 2006, apply sections
23 of Schedule I). On line 24 of Schedule I, use the
172(b)(2) and 172(d) with appropriate modifications to take
minimum tax credit net operating loss deduction
into account only exclusion items.
Cat. No. 10600C


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