Instructions For Form 8801 - 2010


Department of the Treasury
Internal Revenue Service
Instructions for Form 8801
Credit for Prior Year Minimum Tax—Individuals, Estates, and Trusts
reported on Schedule E), certain tax-exempt interest, depletion,
Section references are to the Internal Revenue Code unless
the section 1202 exclusion, and any other adjustments related
otherwise noted.
to exclusion items. Do not include the standard deduction. It
General Instructions
has already been included on line 1. Combine lines 2 through 5,
8 through 10, 13, and 14 of your 2009 Form 6251. Do not
Purpose of Form
include any amount from line 16 of the 2009 Form 6251.
Instead, include the exclusion item amount from the
Use Form 8801 if you are an individual, estate, or trust to figure
Schedule(s) K-1 (Form 1041) you received for 2009. That
the current year nonrefundable credit, if any, for alternative
amount is shown in box 12 with code J. If you included on line
minimum tax (AMT) you incurred in prior tax years; to figure the
28 of the 2009 Form 6251 any adjustments related to exclusion
current year refundable credit (individuals only), if any, for any
items, also include those adjustments in the amount you enter
unused credit carryforward from 2007; and to figure any credit
on line 2. Enter the total on line 2.
carryforward to 2011.
Exclusion items on other lines. If you included any exclusion
Who Should File
item on a line not listed above, include that item in the amount
you enter on line 2. For example, if depletion was included on
Complete Form 8801 if you are an individual, estate, or trust
Form 6251 as an adjustment on line 20 (passive activities)
that for 2009 had:
instead of on line 10 (depletion), include it as an exclusion item
An AMT liability and adjustments or preferences other than
in the amount you enter on line 2.
exclusion items,
Line 3
A credit carryforward to 2010 (on 2009 Form 8801, line 30),
Your minimum tax credit net operating loss deduction
An unallowed qualified electric vehicle credit (see the
(MTCNOLD) is the total of the minimum tax credit net operating
instructions for line 20).
loss (MTCNOL) carryovers and carrybacks to 2009. Your
MTCNOL is figured as follows.
File Form 8801 only if line 21 is more than zero.
Your MTCNOL is the excess of the deductions (excluding
the MTCNOLD) over the income used to figure alternative
Specific Instructions
minimum taxable income (AMTI) taking into account only
exclusion items. Figure this excess with the modifications in
The AMT is caused by two types of adjustments and
section 172(d) taking into account only exclusion items. (That
preferences — deferral items and exclusion items. Deferral
is, the section 172(d) modifications must be figured separately
items (for example, depreciation) generally do not cause a
for the MTCNOL.)
permanent difference in taxable income over time. Exclusion
For example, the limitation of nonbusiness deductions to the
items (for example, the standard deduction), on the other hand,
amount of nonbusiness income must be figured separately for
do cause a permanent difference. The minimum tax credit is
the MTCNOL using only nonbusiness income and deductions
allowed only for the AMT caused by deferral items.
but taking into account only exclusion items. However, ignore
the disallowance of the deduction for personal exemptions
Part I—Net Minimum Tax on Exclusion
under section 172(d)(3) because it has already been taken into
account to figure AMTI attributable only to exclusion items.
To determine the amount of MTCNOL that may be carried to
Line 1—Estates and Trusts
tax years other than 2009, apply sections 172(b)(2) and 172(d)
with appropriate modifications to take into account only
Skip lines 1 through 3 of Form 8801. To figure the amount to
exclusion items.
enter on line 4 of Form 8801, complete Parts I and II of another
2009 Form 1041, Schedule I, as a worksheet. After completing
Line 4
line 1 of Schedule I, complete the rest of Part I of Schedule I by
If your filing status was married filing separately for 2009 and
taking into account only exclusion items (the amounts included
line 4 is more than $216,900, you must include an additional
on lines 2 through 6, 8, and 9, and any other adjustments
amount on line 4. If line 4 is $358,800 or more, include an
related to exclusion items included on line 23 of Schedule I). On
additional $35,475 on line 4. Otherwise, include 25% of the
line 24 of Schedule I, use the minimum tax credit net operating
excess of the amount on line 4 over $216,900. For example, if
loss deduction (MTCNOLD). However, do not limit the
the amount on line 4 is $236,900, enter $241,900 instead — the
MTCNOLD to 90% of the total of lines 1 through 23 of Schedule
additional $5,000 is 25% of $20,000 ($236,900 minus
I. (See the instructions for line 3 on this page for how to figure
the MTCNOLD.) In Part II of Schedule I, complete lines 35 and
36 without taking into account any basis adjustments arising
Line 9
from deferral items. If the amount on Schedule I, line 29, is zero
Do not enter more than the sum of your 2009 earned income
or less, enter -0- on Form 8801, line 4. Otherwise, enter on
plus $6,700 if you did not file a joint return for 2009, at least one
Form 8801, line 4, the amount from Schedule I, line 29,
of your parents was alive at the end of 2009, and one of the
adjusted for exclusion items that were allocated to the
following statements is true.
1. You were under age 18 at the end of 2009.
Note. If you complete Parts I and II of a 2009 Form 1041,
2. You were age 18 at the end of 2009 and did not have
Schedule I, as a worksheet to figure the amount to enter on
earned income that was more than half of your support.
2010 Form 8801, line 4, do not attach that worksheet
3. You were a full-time student over age 18 and under age
Schedule I to your tax return. Instead, keep it for your
24 at the end of 2009 and did not have earned income that was
more than half of your support.
Line 2
Enter on this line the adjustments and preferences treated as
Certain January 1 birthdays. If you were born on January 1,
exclusion items (except the standard deduction). Exclusion
1992, you are considered to be 18 at the end of 2009. This
items are only the following AMT adjustments and preferences:
limitation applies to you only if you did not have earned income
itemized deductions (including any investment interest expense
that was more than half of your support.
Cat. No. 10600C


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