Instructions For Form 8801 - 2009 (Page 3 of 4) in pdf

MTFTCE Form 1116 if you are required to adjust your foreign

qualified for that adjustment exception if you had completed a

source qualified dividends under the rules just described or you

regular tax Form 1116) for 2008, and

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would be required to adjust your foreign source qualified

Line 36 of Form 8801 is not more than $175,000 ($87,500 if

dividends if you had any.

married filing separately for 2008).

To adjust your foreign source capital gain distributions,

If you do not need to complete the Worksheet for Line 17,

multiply your foreign source capital gain distributions in each

enter the amount from line 4 of Form 8801 on line 17 of the

separate category by 0.5357 (instead of 0.4286) if the foreign

MTFTCE Form 1116.

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 45, on line 4 of

Other capital gains or losses. Use Worksheet A in the

the worksheet.

instructions for the 2008 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 43, 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

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You figured your 2008 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 42, 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.

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Line 15 or 16 of your 2008 Schedule D (Form 1040) (line 14a

or 15 of Schedule D (Form 1041)) is zero or a loss.

Step 7. Enter the amount from Form 8801, line 11, on the

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You figured your 2008 tax using Schedule D (Form 1041)

MTFTCE Form 1116, line 19. Complete lines 18, 20, and 21 of

and line 18 of Schedule D minus the amount on line 4e of Form

the MTFTCE Form 1116.

4952 that you elected to include on line 4g of Form 4952 is zero

Step 8. Complete Part IV of the first MTFTCE Form 1116 only.

or less.

Enter the amount from that MTFTCE Form 1116, line 29, on

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You figured your 2008 tax using the Schedule D Tax

Form 8801, line 12.

Worksheet in the Schedule D (Form 1040) instructions or in the

Step 9. Keep all Forms 1116 you used to figure your MTFTCE,

Form 1041 instructions and line 9 of that worksheet is zero or a

but do not attach them to your tax return.

loss.

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You were not required to make adjustments to your foreign

If line 13 of the MTFTCE Form 1116 is greater than line 20

source qualified dividends under the rules described earlier (or

of the MTFTCE Form 1116, keep a record of the difference.

you would not have been required to make those adjustments if

This amount is carried forward and used to figure your MTFTCE

you had foreign source qualified dividends).

next year.

Use Worksheet B if you:

•

Part II—Current Year Nonrefundable and

Cannot use Worksheet A,

•

Had 2008 foreign source capital gains and losses in no more

Refundable Credits and Carryforward to

than two separate categories,

•

2010

Did not have any item of unrecaptured section 1250 gain or

28% rate gain or loss, and

•

Line 20

Did not have any capital gains taxed at a rate of 0%.

Enter any qualified electric vehicle credit not allowed for 2008

Instructions for Worksheets A and B. When you

solely because of the limitation under section 30(b)(3)(B) (as in

complete Worksheet A or Worksheet B, do not use any foreign

effect prior to the amendment of section 30 by Public Law

source capital gains you elected to include on line 4g of Form

111-5, the American Recovery and Reinvestment Tax Act of

4952. Use 0.5357 instead of 0.4286 to complete lines 11, 13,

2009).

and 15 of Worksheet B and to complete lines 8, 11, and 17 of

the Line 15 Worksheet for Worksheet B.

Line 23

If you do not qualify to use Worksheet A or Worksheet B,

If line 23 is zero, you do not have a nonrefundable or

use the instructions for Capital Gains and Losses in Pub. 514 to

refundable credit or a credit carryforward. Do not complete the

determine the adjustments you make.

rest of this form and do not file it.

Step 4. Complete lines 9 through 13 of the MTFTCE Form

Line 24

1116. For line 9, use the same amount you entered on that line

for 2008 for the regular tax. Use your MTFTCE carryover, if

Follow the instructions below and refer to your 2009 income tax

any, on line 10.

return to figure the amount to enter on line 24.

Step 5. If you did not figure your 2008 AMTFTC using the

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

simplified limitation election, complete lines 14 through 16 of the

any credits on lines 47 through 53 (not including any credit for

MTFTCE Form 1116.

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

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

Step 6. If you did not complete Part III of Form 8801, enter the

amount from Form 8801, line 4, on line 17 of the MTFTCE Form

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

1116 and go to Step 7. If you completed Part III of Form 8801,

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

you must complete, for the MTFTCE, the Worksheet for Line 17

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

in the Form 1116 instructions to determine the amount to enter

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

on line 17 of the MTFTCE Form 1116 if:

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

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Line 47 of Form 8801 is smaller than line 48, and

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

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Line 36 of Form 8801 is greater than zero.

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

But you do not need to complete the Worksheet for Line 17

Part III—Tax Computation Using

if:

•

You qualified for the adjustment exception under Qualified

Maximum Capital Gains Rates

Dividends and Capital Gain Tax Worksheet (Individuals),

Qualified Dividends Tax Worksheet (Estates and Trusts), or

If your 2008 taxable income was zero or less, enter -0- on Form

Adjustments to foreign qualified dividends under Schedule D

8801, line 39. You also must take one of the following actions,

Filers, whichever applies, in the Form 1116 instructions when

whichever applies to you, before completing lines 32, 33, and

you completed your regular tax Form 1116 (or you would have

34 of Part III.

-3-

Instructions for Form 8801 (2009)

Instructions For Form 8801 - 2009 Page 3

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