Instructions For Schedule I (Form 1041) - Alternative Minimum Tax-Estates And Trusts - 2017 Page 3

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election must be made no later than 30
The $3,000 capital loss
Section 1250 property placed in
days after the date of transfer.
limitation for the regular tax
service after 1998 that isn't depreciated
!
applies separately for the AMT.
for the regular tax using the straight line
CAUTION
method, and
If the estate or trust acquired stock by
Tangible property placed in service
exercising an option and it disposed of
First, figure any ordinary income
after 1986 and before 1999. If the
that stock in the same year, the tax
adjustment related to 3, earlier. Then,
transitional election was made under
treatment under the regular tax and the
refigure Form 4684, Form 4797, Form
section 203(a)(1)(B) of the Tax Reform
AMT is the same, and no adjustment is
8949, and Schedule D (Form 1041) for
Act of 1986, this rule applies to property
required.
the AMT, if applicable, by taking into
placed in service after July 31, 1986.
account any adjustments you made this
Increase the AMT basis of any stock
year or in previous years that affect the
What depreciation isn't refigured for
acquired through the exercise of an
estate's or trust's basis or otherwise
the AMT? Don’t refigure depreciation
incentive stock option by the amount of
result in a different amount for AMT. If
for the AMT for the following items.
the adjustment.
the estate or trust has a capital loss after
Residential rental property placed in
refiguring Schedule D for the AMT,
service after 1998.
Note. If a Form 3921, Exercise of an
apply the $3,000 capital loss limitation
Nonresidential real property with a
Incentive Stock Option Under Section
separately to the AMT loss. For each of
class life of 27.5 years or more placed in
422(b), was received, it may help you
the four items listed above, figure the
service after 1998 that is depreciated for
figure the adjustment.
difference between the amount included
the regular tax using the straight line
in taxable income for the regular tax and
Line 11—Other Estates and
method.
the amount included in income for the
Other section 1250 property placed in
Trusts
AMT. Treat the difference as a negative
service after 1998 that is depreciated for
If the estate or trust is the beneficiary of
amount if (a) both the AMT and regular
the regular tax using the straight line
another estate or trust, enter the
tax amounts are zero or more and the
method.
adjustment for minimum tax purposes
AMT amount is less than the regular tax
Property (other than section 1250
from box 12, code A, Schedule K-1
amount or (b) the AMT amount is a loss,
property) placed in service after 1998
(Form 1041).
and the regular tax amount is a smaller
that is depreciated for the regular tax
loss, or zero or more.
Line 12—Electing Large
using the 150% declining balance
method or the straight line method.
Partnerships
Enter on line 13 the combined
Property for which you elected to use
If the estate or trust is a partner in an
adjustments for the four items earlier.
the alternative depreciation system
electing large partnership, enter on
(ADS) of section 168(g) for the regular
Line 14—Depreciation on
line 12 the amount from Schedule K-1
tax.
Assets Placed in Service After
(Form 1065-B), Partner's Share of
Qualified property that is or was
1986
Income (Loss) From an Electing Large
eligible for the special depreciation
Partnership, box 6. Take into account
This section describes when
allowance if the depreciable basis of the
any amount from Schedule K-1 (Form
depreciation must be refigured for the
property for the AMT is the same as for
1065-B), box 5, when figuring the
AMT and how to figure the amount to
the regular tax. This applies to any
amount to enter on line 15.
enter on line 14.
special depreciation allowance,
including those for qualified disaster
Line 13—Disposition of
Don’t include on this line any
assistance property, qualified reuse and
Property
depreciation adjustment from:
recycling property, qualified cellulosic
Use this line to report any AMT
An activity for which the estate or
biofuel plant property, qualified New
adjustment related to the disposition of
trust isn't at risk or income or loss from a
York Liberty Zone property, qualified
property resulting from refiguring:
partnership or an S corporation if the
Gulf Opportunity Zone property, and
basis limitations under section 704(d) or
1. Gain or loss from the sale,
Kansas disaster area qualified recovery
1366(d) apply. Take this adjustment into
exchange, or involuntary conversion of
assistance property. The special
account on line 16;
property reported on Form 4797, Sales
allowance is deductible for the AMT,
A tax shelter farm activity. Take this
of Business Property;
and there also is no adjustment required
adjustment into account on line 23; or
for any depreciation figured on the
2. Casualty gain or loss to business
A passive activity. Take this
remaining basis of the qualified property
or income-producing property reported
adjustment into account on line 15.
if the depreciable basis of the property
on Form 4684, Casualties and Thefts;
for the AMT is the same as for the
What depreciation must be refigured
3. Ordinary income from the
regular tax. Property for which an
for the AMT? Generally, you must
disposition of property not taken into
election is in effect to not have the
refigure depreciation for the AMT,
account in 1 or 2 above or on any other
special allowance apply isn't qualified
including depreciation allocable to
line on Schedule I, such as a
property. In addition, if you elect not to
inventory costs, for:
disqualifying disposition of stock
have any special depreciation
Property placed in service after 1998
acquired in a prior year by exercising an
allowance apply, the property may be
that is depreciated for the regular tax
incentive stock option; and
subject to an AMT adjustment for
using the 200% declining balance
4. Capital gain or loss (including any
depreciation if it was placed in service
method (generally 3-, 5-, 7-, or 10-year
carryover that is different for the AMT)
before 2016. It is not subject to an AMT
property under the modified accelerated
reported on Form 8949, Sales and
adjustment for depreciation if it was
cost recovery system (MACRS), except
Other Dispositions of Capital Assets, or
placed in service after 2015.
for certain qualified property eligible for
Schedule D (Form 1041), Capital Gains
Motion picture films, videotapes, or
the special depreciation allowance
and Losses.
sound recordings.
(discussed later)),
2017 Instructions for Schedule I (Form 1041)
-3-

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