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Line 24

1. Reduce the amount on line 3 of your 2007 Qualified

Dividends and Capital Gain Tax Worksheet or line 9 of your

If line 24 is zero, you do not have a nonrefundable or

2007 Schedule D Tax Worksheet (but not below zero) by your

refundable credit or a credit carryforward. Do not complete the

capital gain excess.

rest of this form and do not file it.

2. Reduce the amount on your 2007 Form 1040, line 9b,

Line 25

(but not below zero) by any of your capital gain excess not used

in (1).

Follow the instructions below and refer to your 2008 income tax

3. Reduce the amount on your 2007 Schedule D (Form

return to figure the amount to enter on line 25.

1040), line 18, (but not below zero) by your capital gain excess.

Form 1040. Subtract from the amount on line 44 the total of

4. Include your capital gain excess as a loss on line 16 of

any credits on lines 47 through 54 (not including any credit for

your 2007 Unrecaptured Section 1250 Gain Worksheet on page

prior year minimum tax or any credit claimed on Form 8912).

D-9 of the 2007 Instructions for Schedule D (Form 1040).

Enter the result. If the result is zero or less, enter -0-.

Form 1040NR. Subtract from the amount on line 41 the total

Line 38

of any credits on lines 44 through 49 (not including any credit

If for 2007 you filed Form 1040NR and Form 8801, line 37, is

for prior year minimum tax or any credit claimed on Form 8912).

$175,000 or less ($87,500 or less if you checked filing status

Enter the result. If the result is zero or less, enter -0-.

box 3, 4, or 5 on Form 1040NR for 2007), multiply line 37 by

Form 1041, Schedule G. Subtract the total of any credits on

26% (.26). Otherwise, multiply line 37 by 28% (.28) and subtract

lines 2a through 2c from the sum of lines 1a and 1b. Enter the

$3,500 ($1,750 if you checked filing status box 3, 4, or 5 on

result. If the result is zero or less, enter -0-.

Form 1040NR for 2007) from the result.

Part III—Tax Computation Using

Line 39

Maximum Capital Gains Rates

If for 2007 you filed Form 1040NR, enter $31,850 ($63,700 if

you checked filing status box 6 on Form 1040NR for 2007).

If your 2007 taxable income was zero or less, enter -0- on Form

Line 40

8801, line 40. You also must take one of the following actions,

whichever applies to you, before completing lines 33, 34, and

If for 2007 you filed Form 1040NR, enter on Form 8801, line

35 of Part III.

40, the amount from line 5 of your 2007 Qualified Dividends and

•

Complete lines 2 through 6 of the Qualified Dividends and

Capital Gain Tax Worksheet in the instructions for Form

Capital Gain Tax Worksheet on page 35 of the 2007

1040NR, line 41, or the amount from line 14 of your 2007

Instructions for Form 1040.

Schedule D Tax Worksheet on page D-10 of the 2007

•

Complete lines 2 through 4 of the Qualified Dividends and

Instructions for Schedule D (Form 1040), whichever applies. If

Capital Gain Tax Worksheet on page 19 of the 2007

you did not complete either worksheet, enter -0-.

Instructions for Form 1040NR.

•

Line 50

Complete lines 2 through 13 of the Schedule D Tax

Worksheet on page D-10 of the 2007 Instructions for Schedule

If for 2007 you filed Form 1040NR and Form 8801, line 32, is

D (Form 1040) or page 43 of the 2007 Instructions for Form

$175,000 or less ($87,500 or less if you checked filing status

1041, whichever applies.

box 3, 4, or 5 on Form 1040NR for 2007), multiply line 32 by

•

Complete lines 2 through 4 of the Qualified Dividends Tax

26% (.26). Otherwise, multiply line 32 by 28% (.28) and subtract

Worksheet on page 26 of the 2007 Instructions for Form 1041.

$3,500 ($1,750 if you checked filing status box 3, 4, or 5 on

•

Complete lines 18 through 22 of the 2007 Schedule D (Form

Form 1040NR for 2007) from the result.

1041).

Paperwork Reduction Act Notice. We ask for the information

To determine which worksheet above applies to you, see the

on this form to carry out the Internal Revenue laws of the United

2007 instructions for Form 1040, line 44; Form 1040NR, line 41;

States. You are required to give us the information. We need it

or Form 1041, Schedule G, line 1a.

to ensure that you are complying with these laws and to allow

Lines 33, 34, and 35

us to figure and collect the right amount of tax.

Follow the instructions below to figure the amounts to enter on

You are not required to provide the information requested on

lines 33, 34, and 35 if, for 2007:

a form that is subject to the Paperwork Reduction Act unless

the form displays a valid OMB control number. Books or

1. You filed Form 1040NR and did not use the Schedule D

records relating to a form or its instructions must be retained as

Tax Worksheet to figure your tax,

long as their contents may become material in the

2. You filed Form 1041 and did not use the Schedule D Tax

administration of any Internal Revenue law. Generally, tax

Worksheet or Part V of Schedule D (Form 1041) to figure your

returns and return information are confidential, as required by

tax, or

3. You filed Form 2555 or 2555-EZ and have a capital gain

section 6103.

excess (defined later).

The time needed to complete and file this form will vary

depending on individual circumstances. The estimated burden

Otherwise, complete lines 33, 34, and 35 following the

for individual taxpayers filing this form is approved under OMB

instructions for those lines on the form.

control number 1545-0074 and is included in the estimates

Form 1040NR. If (1) above applies, enter the amount from line

shown in the instructions for their individual income tax return.

4 of the Qualified Dividends and Capital Gain Tax Worksheet in

The estimated burden for all other taxpayers who file this form

the 2007 Form 1040NR instructions on Form 8801, lines 33 and

is shown below.

35; skip Form 8801, line 34; and enter on Form 8801, line 40,

the amount from line 5 of that worksheet.

Recordkeeping . . . . . . . . . . . . . . . . . . . .

2 hr., 4 min.

Estates and trusts. If (2) above applies, enter the amount

Learning about the law or the form . . . . .

1 hr., 57 min.

from line 4 of the Qualified Dividends Tax Worksheet in the

Preparing the form . . . . . . . . . . . . . . . . .

2 hr., 3 min.

2007 Form 1041 instructions on Form 8801, lines 33 and 35;

Copying, assembling, and sending the

48 min.

skip Form 8801, line 34; and enter on Form 8801, line 40, the

form to the IRS . . . . . . . . . . . . . . . . . .

amount from line 5 of that worksheet.

Forms 2555 and 2555-EZ. If you filed either of these forms for

If you have comments concerning the accuracy of these time

2007 and you have a capital gain excess, you must complete

estimates or suggestions for making this form simpler, we

Part III of Form 8801 with certain modifications. To see if you

would be happy to hear from you. See the instructions for the

have a capital gain excess, subtract Form 8801, line 10, from

tax return with which this form is filed.

line 6 of your 2007 Qualified Dividends and Capital Gain Tax

Worksheet (or line 10 of your 2007 Schedule D Tax

Worksheet). If the result is more than zero, that amount is your

capital gain excess.

If you have a capital gain excess, figure the amounts to enter

on lines 33, 34, and 35 of Form 8801 using the following

modifications (only for purposes of Part III of Form 8801).

-4-

Instructions For Form 8801 - Credit For Prior Year Minimum Tax - Individuals, Estates, And Trusts - 2008 Page 4

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