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otherwise enter on line 29, enter that

line 13, Part I of Form 1041

Form 1041 and Schedules A, B, G, J,

amount instead and write “Sch. Q” on

(Schedule I).

and K-1.

the dotted line next to line 29.

Line 41—Adjustment for

Part III—Alternative

Tax-Exempt Income

Part II—Income

Minimum Tax Computation

Distribution Deduction on

In figuring the income distribution

Line 53—Alternative Minimum

deduction on a minimum tax basis, the

a Minimum Tax Basis

estate or trust isn't allowed a deduction

Foreign Tax Credit

for any item of DNAMTI (line 37) that

Line 30—Adjusted Alternative

To see if you need to figure the

isn't included in the gross income of the

Minimum Taxable Income

estate's or trust's AMT foreign

estate or trust figured on an AMT basis.

TIP

Generally, enter on line 30, Schedule I,

tax credit, fill in line 55 of

Thus, for purposes of figuring the

the amount from line 25, Schedule I.

Schedule I as instructed. If the amount

allowable income distribution deduction

However, if Form 1041, page 1, line 4

on line 55 is greater than or equal to the

on a minimum tax basis, the DNAMTI is

and line 25 are losses, enter on line 30

amount on line 52, the estate or trust

figured without regard to any

the smaller of those losses. If Form

doesn't owe the AMT. Enter zero on

tax-exempt interest (except for amounts

1041, line 4 is zero or a gain and line 25

line 56 and see Who Must Complete

from line 8).

is a loss, enter zero on line 30.

earlier to find out if you must file

If tax-exempt interest is the only

Schedule I with Form 1041. However,

Line 31—Adjusted Tax-Exempt

tax-exempt income included in the total

even if the estate or trust doesn't owe

Interest

distributions (line 40), and the DNAMTI

AMT, you may need to complete line 53

(line 37) is less than or equal to line 40,

to see if you have an AMT foreign tax

To figure the adjusted tax-exempt

then enter on line 41 the amount from

credit carryback or carryforward to other

interest (including exempt-interest

line 31.

tax years.

dividends received as a shareholder in

a mutual fund or other regulated

If tax-exempt interest is the only

To figure the AMT foreign tax credit,

investment company), subtract the total

tax-exempt income included in the total

follow the steps discussed below.

of any:

distributions (line 40), and the DNAMTI

Step 1. Complete and attach a

1. Tax-exempt interest from Form

is more than line 40 (that is, the estate

separate AMT Form 1116, with the

1041, Schedule A, line 2 figured for

or trust made a distribution that is less

notation at the top “Alt Min Tax” for each

AMT purposes, and

than the DNAMTI), then figure the

separate limitation category specified at

adjustment by multiplying line 31 by a

2. Section 212 expenses allowable

the top of Form 1116.

fraction, the numerator of which is the

for AMT purposes allocable to

total distributions (line 40), and the

tax-exempt interest, from the amount of

Note. When applying the separate

denominator of which is the DNAMTI

tax-exempt interest received.

limitation categories, use the applicable

(line 37). Enter the result on line 41.

AMT rate instead of the regular tax rate

Don’t subtract any deductions

to determine if any income is

If line 40 includes tax-exempt income

reported on lines 2 through 4,

“high-taxed.”

other than tax-exempt interest (except

Schedule I (Form 1041).

for amounts from line 8), figure line 41

Step 2. If you (on behalf of the estate or

Section 212 expenses that are

by subtracting the total expenses

trust) previously made or are making the

directly allocable to tax-exempt interest

allocable to tax-exempt income that are

Simplified limitation election (as

are allocated only to tax-exempt

allowable for AMT purposes from

discussed later), skip Part I and enter on

interest. A reasonable proportion of

tax-exempt income included on line 40.

the AMT Form 1116, line 17, the same

section 212 expenses that are indirectly

amount you entered on that line for the

allocable to both tax-exempt interest

Expenses that are directly allocable

regular tax. If you didn't complete Form

and other income must be allocated to

to tax-exempt income are allocated only

1116 for the regular tax and you

each class of income.

to tax-exempt income. A reasonable

previously made or are making the

proportion of expenses indirectly

Line 33

simplified limitation election (on behalf

allocable to both tax-exempt income

of the estate or trust), complete Part I

Reduce the amount on line 33 by any

and other income must be allocated to

and lines 15 through 17 of the AMT

allocable section 1202 exclusion (as

each class of income.

Form 1116 using regular tax amounts.

refigured for AMT purposes).

Line 44—Income Distribution

If the election doesn't apply,

Line 34

Deduction on a Minimum Tax

complete Part I, using only income and

Enter any capital gains that were paid or

Basis

deductions allowed for the AMT that are

permanently set aside for charitable

attributable to sources outside the

Allocate the income distribution

purposes from the current year's income

United States. If the estate or trust has

deduction figured on a minimum tax

included on line 1 of Form 1041,

any foreign source qualified dividends

basis among the beneficiaries in the

Schedule A. Reduce the amount on

or foreign source capital gains or losses,

same manner as income was allocated

line 34 by any allocable section 1202

use the instructions under Step 3 to

for regular tax purposes. You need the

exclusion (as refigured for AMT

determine whether you must make

allocated income distribution deduction

purposes).

adjustments to those amounts before

figured on a minimum tax basis to figure

you include the amounts on line 1a or

Lines 35 and 36

the beneficiary's adjustment for

line 5 of the AMT Form 1116.

minimum tax purposes, as explained

Capital gains and losses must take into

under Box 12–Alternative minimum tax

Step 3. Follow the instructions below, if

account any basis adjustments from

(AMT) items in the Schedule K-1

applicable, to determine the amount of

instruction section of the Instructions for

2017 Instructions for Schedule I (Form 1041)

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Instructions For Schedule I (Form 1041) - Alternative Minimum Tax-Estates And Trusts - 2017 Page 7

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