Instructions For Form 8801 - 2010 Page 3

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source capital gain distributions are taxed at a rate of 15%. If
Instructions for MTFTCE Worksheet for Line 17. Follow
you have foreign source capital gain distributions that are taxed
these steps to complete, for the MTFTCE, the Worksheet for
at a rate of 0%, you adjust them by not including them on line
Line 17 in the Form 1116 instructions.
1a of MTFTCE Form 1116. Include the results on line 1a of the
1. Enter the amount from Form 8801, line 4, on line 1 of the
applicable MTFTCE Form 1116. But do not adjust the amount
worksheet.
of any foreign source capital gain distribution you elected to
2. Skip lines 2 and 3 of the worksheet.
include on line 4g of Form 4952.
3. Enter the amount from Form 8801, line 43, on line 4 of
Other capital gains or losses. Use Worksheet A in the
the worksheet.
instructions for the 2009 Form 1116 to determine the
4. Multiply line 4 of the worksheet by 0.1071 (instead of
adjustments you must make to your foreign source capital gains
0.2857). Enter the result on line 5 of the worksheet.
or losses if you have foreign source capital gains or losses in no
5. Enter the amount from Form 8801, line 41, on line 6 of
more than two separate categories and any of the following
the worksheet.
apply.
6. Multiply line 6 of the worksheet by 0.4643 (instead of
You figured your 2009 tax using the Qualified Dividends and
0.5714). Enter the result on line 7 of the worksheet.
Capital Gain Tax Worksheet in the Form 1040 (or Form
7. Enter the amount from Form 8801, line 40, on line 8 of
1040NR) instructions and line 3 of that worksheet minus the
the worksheet.
amount on line 4e of Form 4952 that you elected to include on
8. Complete lines 9 and 10 of the worksheet as instructed
line 4g of Form 4952 is zero or less.
on the worksheet.
Line 15 or 16 of your 2009 Schedule D (Form 1040) (column
Step 7. Enter the amount from Form 8801, line 11, on the
(2) of line 14a or 15 of Schedule D (Form 1041)) is zero or a
MTFTCE Form 1116, line 19. Complete lines 18, 20, and 21 of
loss.
the MTFTCE Form 1116.
You figured your 2009 tax using Schedule D (Form 1041)
Step 8. Complete Part IV of the first MTFTCE Form 1116 only.
and line 18 of Schedule D minus the amount on line 4e of Form
4952 that you elected to include on line 4g of Form 4952 is zero
Enter the amount from that MTFTCE Form 1116, line 29, on
or less.
Form 8801, line 12.
You figured your 2009 tax using the Schedule D Tax
Step 9. Keep all Forms 1116 you used to figure your MTFTCE,
Worksheet in the Schedule D (Form 1040) instructions or in the
but do not attach them to your tax return.
Form 1041 instructions and line 9 of that worksheet is zero or a
If line 13 of the MTFTCE Form 1116 is greater than line 20
loss.
of the MTFTCE Form 1116, keep a record of the difference.
You were not required to make adjustments to your foreign
This amount is carried forward and used to figure your MTFTCE
source qualified dividends under the rules described earlier (or
next year.
you would not have been required to make those adjustments if
you had foreign source qualified dividends).
Part II—Current Year Nonrefundable and
Use Worksheet B if you:
Refundable Credits and Carryforward to
Cannot use Worksheet A,
2011
Had 2009 foreign source capital gains and losses in no more
than two separate categories,
Did not have any item of unrecaptured section 1250 gain or
Line 20
28% rate gain or loss, and
Enter any qualified electric vehicle credit not allowed for 2009
Did not have any capital gains taxed at a rate of 0%.
solely because of the limitation under section 30(b)(3)(B) (as in
Instructions for Worksheets A and B. When you
effect prior to the amendment of section 30 by Public Law
complete Worksheet A or Worksheet B, do not use any foreign
111-5, the American Recovery and Reinvestment Tax Act of
source capital gains you elected to include on line 4g of Form
2009).
4952. Use 0.5357 instead of 0.4286 to complete lines 11, 13,
Line 21
and 15 of Worksheet B and to complete lines 8, 11, and 17 of
the Line 15 Worksheet for Worksheet B.
If line 21 is zero, you do not have a nonrefundable or
refundable credit or a credit carryforward. Do not complete the
If you do not qualify to use Worksheet A or Worksheet B,
rest of this form and do not file it.
use the instructions for Capital Gains and Losses in Pub. 514 to
determine the adjustments you make.
Line 22
Step 4. Complete lines 9 through 13 of the MTFTCE Form
Follow the instructions below and refer to your 2010 income tax
1116. For line 9, use the same amount you entered on that line
return to figure the amount to enter on line 22.
for 2009 for the regular tax. Use your MTFTCE carryover, if
Form 1040. Subtract from the amount on line 44 the total of
any, on line 10.
any credits on lines 47 through 53 (not including any credit for
Step 5. If you did not figure your 2009 AMTFTC using the
prior year minimum tax or any credit claimed on Form 8912).
simplified limitation election, complete lines 14 through 16 of the
Enter the result. If the result is zero or less, enter -0-.
MTFTCE Form 1116.
Form 1040NR. Subtract from the amount on line 42 the total
Step 6. If you did not complete Part III of Form 8801, enter the
of any credits on lines 45 through 50 (not including any credit
amount from Form 8801, line 4, on line 17 of the MTFTCE Form
for prior year minimum tax or any credit claimed on Form 8912).
1116 and go to Step 7. If you completed Part III of Form 8801,
Enter the result. If the result is zero or less, enter -0-.
you must complete, for the MTFTCE, the Worksheet for Line 17
Form 1041, Schedule G. Add the credits on lines 2a and 2b,
in the Form 1116 instructions to determine the amount to enter
plus any write-in credits on line 3. Subtract the result from the
on line 17 of the MTFTCE Form 1116 if:
total of lines 1a and 1b. Enter the result. If the result is zero or
Line 45 of Form 8801 is smaller than line 46, and
less, enter -0-.
Line 34 of Form 8801 is greater than zero.
But you do not need to complete the Worksheet for Line 17
Part III—Tax Computation Using
if:
Maximum Capital Gains Rates
You qualified for the adjustment exception under Qualified
Dividends and Capital Gain Tax Worksheet (Individuals),
If your 2009 taxable income was zero or less, enter -0- on Form
Qualified Dividends Tax Worksheet (Estates and Trusts), or
8801, line 37. You also must take one of the following actions,
Adjustments to foreign qualified dividends under Schedule D
whichever applies to you, before completing lines 30, 31, and
Filers, whichever applies, in the Form 1116 instructions when
32 of Part III.
you completed your regular tax Form 1116 (or you would have
Complete lines 2 through 6 of the Qualified Dividends and
qualified for that adjustment exception if you had completed a
Capital Gain Tax Worksheet on page 39 of the 2009
regular tax Form 1116) for 2009, and
Instructions for Form 1040.
Line 34 of Form 8801 is not more than $175,000 ($87,500 if
Complete lines 2 through 4 of the Qualified Dividends and
married filing separately for 2009).
Capital Gain Tax Worksheet on page 21 of the 2009
If you do not need to complete the Worksheet for Line 17,
Instructions for Form 1040NR.
enter the amount from line 4 of Form 8801 on line 17 of the
Complete lines 2 through 13 of the Schedule D Tax
MTFTCE Form 1116.
Worksheet on page D-10 of the 2009 Instructions for Schedule
-3-
Instructions for Form 8801 (2010)

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