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Form 4952. If the AMT deduction is

August 7, 1986, and before 2009 or

Specific Instructions

greater, enter the difference as a

after 2010, the interest on which isn't

negative amount.

includible in gross income for the

Part I—Estate's or Trust's

regular tax. See section 57(a)(5) for

Line 3—Taxes

Share of Alternative

more information.

Enter any state, local, or foreign real

Minimum Taxable Income

Don’t include interest on qualified

property taxes; state or local personal

Gulf Opportunity Zone bonds described

property taxes; state and local general

Line 2—Interest

in section 1400N(a) or qualified

sales taxes; and any state, local, or

In determining the alternative minimum

Midwestern disaster area bonds.

foreign income taxes that were included

taxable income, qualified residence

on Form 1041, page 1, line 11.

interest (other than qualified housing

Exempt-interest dividends paid by a

Line 5—Refund of Taxes

interest defined in section 56(e)) isn't

regulated investment company are

allowed.

treated as interest from specified private

Enter any refunds received in 2017 of

activity bonds to the extent the

taxes described for line 3 above and

If you completed Form 4952,

dividends are attributable to interest on

included in income.

Investment Interest Expense Deduction,

the bonds received by the company,

Line 6—Depletion

for regular tax purposes, you may have

minus an allocable share of the

an adjustment on this line. Refigure your

Refigure the depletion deduction for

expenses paid or incurred by the

investment interest expense on a

AMT purposes by using only the income

company in earning the interest. This

separate AMT Form 4952 as follows.

and deductions allowed for the AMT

amount should also be reported to the

when refiguring the limit based on

estate or trust on Form 1099-DIV in

Step 1. On line 1 of the AMT Form

taxable income from the property under

box 11.

4952, follow the instructions for that line,

section 613(a) and the limit based on

but also include the following amounts.

Line 9—Qualified Small

taxable income, with certain

Any qualified residence interest

Business Stock

adjustments, under section 613A(d)(1).

(other than qualified housing interest)

Also, the depletion deduction for mines,

If the estate or trust claimed the

that was paid or accrued on a loan or

wells, and other natural deposits under

exclusion under section 1202 for gain

part of a loan that is allocable to

section 611 is limited to the property's

on qualified small business stock

property held for investment as defined

adjusted basis at the end of the year, as

acquired before September 28, 2010,

in section 163(d)(5) (for example,

refigured for the AMT, unless the estate

and held more than 5 years, multiply the

interest on a home equity loan whose

or trust is an independent producer or

excluded gain (as shown on Form 8949

proceeds were invested in stocks or

royalty owner claiming percentage

in column (g)) by 7% (.07). Enter the

bonds).

depletion for oil and gas wells. Figure

result on line 9 as a positive amount.

Any interest that would have been

this limit separately for each property.

deductible if interest on specified private

Line 10—Exercise of Incentive

When refiguring the property's adjusted

activity bonds had been included in

Stock Options

basis, take into account any AMT

income. See the instructions for line 8

adjustments made this year or in

For regular tax purposes, no income is

for the definition of specified private

previous years that affect basis (other

recognized when an incentive stock

activity bonds.

than the current year's depletion).

option (as defined in section 422(b)) is

Step 2. On line 2, enter the AMT

exercised. However, this rule doesn't

disallowed investment interest expense

Enter on line 6 the difference

apply for AMT purposes. Instead, the

from 2016.

between the regular tax and AMT

estate or trust must generally include on

deduction. If the AMT deduction is more

line 10 the excess, if any, of:

Step 3. When completing Part II of the

than the regular tax deduction, enter the

AMT Form 4952, refigure gross income

1. The fair market value (FMV) of

difference as a negative amount.

from property held for investment, any

the stock acquired through exercise of

net gain from the disposition of property

Line 7—Net Operating Loss

the option (determined without regard to

held for investment, net capital gain

Deduction

any lapse restriction) when its rights in

from the disposition of property held for

the acquired stock first become

Enter any NOLD from line 15b of page 1

investment, and any investment

transferable or when these rights are no

of the Form 1041 as a positive amount.

expenses, taking into account all AMT

longer subject to a substantial risk of

adjustments and tax preference items

Line 8—Interest From Specified

forfeiture, over

that apply. Include any interest income

Private Activity Bonds Exempt

2. The amount paid for the stock,

and investment expenses from private

including any amount paid for the option

From the Regular Tax

activity bonds issued after August 7,

used to acquire the stock.

Enter the interest earned from specified

1986.

private activity bonds reduced (but not

Even if the estate's or trust's

When completing line 4g of the AMT

below zero) by any deduction that would

rights in the stock aren't

Form 4952, enter the smaller of:

TIP

have been allowable if the interest were

transferable and are subject to a

The amount from line 4g of the

includible in gross income for regular tax

substantial risk of forfeiture, you may

regular tax Form 4952, or

purposes. Each payer of this type of

elect to include in AMT income the

The total of lines 4b and 4e of the

interest should send a Form 1099-INT,

excess of the stock's FMV (determined

AMT Form 4952.

Interest Income, to the estate or trust

without regard to any lapse restriction)

Step 4. Complete Part III.

showing the amount of this interest in

over the exercise price upon the transfer

box 9. Generally, specified private

Enter on Schedule I, line 2 the

to the estate or trust of the stock

activity bonds are any qualified bonds

difference between line 8 of the AMT

acquired through exercise of the option.

(as defined in section 141) issued after

Form 4952 and line 8 of the regular tax

See section 83(b) for more details. The

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2017 Instructions for Schedule I (Form 1041)

Instructions For Schedule I (Form 1041) - Alternative Minimum Tax-Estates And Trusts - 2017 Page 2

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