Looking for a California Tax Forms And Templates? Download it for free!

• If your credit(s) are taken in more than one section,

Part II – Income Distribution Deduction on an

complete each section before going to the next section.

Alternative Minimum Tax Basis

• Once you have completed Part IV, see “How to Claim

Line 5 –

Enter any capital gains that were paid or perma-

Your Credits” on the next page.

nently set aside for charitable purposes from the current

Section A Instructions

year’s income included on Form 541, Schedule A, line 3.

Line 6 and Line 7 – Capital gains and losses must take into

Line 3 –

Subtract line 2 from line 1. If the amount is zero

account any basis adjustments from Part I, line 4k.

or less, continue to Question 1. If the amount is greater

than zero, go to the Section A1 instructions.

Line 15 – Income distribution deduction on an

1. Does the Credit Table show that you may take your

alternative minimum tax basis

credit ONLY in Section A1 or Section A2?

Allocate the income distribution deduction computed on an

Yes You may not take the credit this year. Go to

AMT basis among the beneficiaries in the same manner as

question 2.

income was allocated for regular tax. Report each

No Go to Section B to figure the amount of credit you

beneficiary’s share on the respective Schedule K-1 (541),

line 6.

may take this year. Then continue to Section C if

your credit is listed in that section.

Part III – Tentative Minimum Tax (TMT) and Alternative

2. Does the credit have carryover provisions?

Minimum Tax (AMT) Computation

Yes Enter the credit code, credit name, and credit

Line 9 –

Enter the total of the estate’s or trust’s regular tax

amount in column (a) of the section indicated by

from Form 541, line 21a, plus any IRC Section 667(b) tax

the table. Enter -0- in column (b). Enter the credit

from form FTB 5870A entered on Form 541, line 21b.

amount in column (d). This is the amount of the

Note: Do not include the tax from Schedule G-1, Tax on

credit you may carry over and use in future years.

Lump-Sum Distributions, entered on Form 541, line 21b,

No You may not take the credit this year or in future

or tax attributable to an electing small business trust. For

years.

installment obligations subject to IRC Sections 453(l)(2)(B)

(timeshares and residential lots) and 453A (nondealer

Section A1 Instructions

dispositions greater than $150,000), do not include tax

increases for interest on the deferred tax liability.

Line 4 and Line 5 –

If you have any of the credits listed in

Part IV – Credits That Reduce Tax

this section, complete column (a) through column (c) for

each credit in the order listed.

Complete Part IV only if you have tax credits.

Use Part IV to determine the:

Section A2 Instructions

• Amount of credit that may be used to offset tax;

• Tax that may be offset;

Line 6 through Line 10 –

Follow the Credit Table

• Amount of credit, if any, that may be carried over to

Instructions to find out in which section to claim your

future years; and

credit. Then complete column (a) through column (d) for

• Order in which to claim credits, if you have more than

each credit in each section before going to the next section.

one credit to claim.

Note: Generally, it is to your advantage to apply credits

Before you begin Part IV:

with limited carryovers before credits with no limitation on

the carryover. However, you may want to apply credits with

• Complete Form 541 through line 24; and

no limitation on carryover first if that is more advantageous

• Figure the amount of your credit(s) using the credit

in your case.

form or worksheet identified in the Credit Table on the

following page. Be sure to attach the credit form to your

return if one is required.

Section B1 Instructions

To complete Part IV:

Line 12 through Line 15 –

Follow the Credit Table

• Complete line 1 through line 3 to figure the amount of

Instructions to find out in which section to claim your

excess tax you may offset by credits.

credit. Then complete column (a) through column (d)

• Identify in which section(s) of Part IV you may take

before going to the next section.

your tax credit(s). Credits without carryover provisions

Note: Generally, it is to your advantage to apply credits

are listed on Schedule P in Section A1 and Section B2

with limited carryovers before credits with no limitation on

and may be taken only in those sections. Credits with

the carryover. However, you may want to apply credits with

carryover provisions are listed on the Credit Table. The

no limitation on carryover first if that is more advantageous

table identifies the section(s) of Part IV in which you

in your case.

may take these tax credits.

• If you have credit(s) in Section B, be sure to complete

line 11 in addition to the line(s) for your credit(s).

Section B2 Instructions

• If your credit is taken in Section A2 or Section B1, enter

the credit code and the credit name in the space

Line 16 –

If you have an other state tax credit, complete

provided. Refer to the Credit Table for the credit code.

column (a) through column (d) for each credit in the order

• Complete column (a) through column (d) for each line

listed.

on which you are taking a credit. Refer to “Column

Instructions” on the next page.

Schedule P (541) Instructions 1999 Page 7

Instructions For Schedule P (541) - Alternative Minimum Tax And Credit Limitations - Fiduciaries - 1999 Page 7

Related Articles

Related forms

Related Categories