Instructions For Schedule I (Form 1041) - 2016
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Department of the Treasury
Internal Revenue Service
Instructions for Schedule I
(Form 1041)
Alternative Minimum Tax—Estates and Trusts
Section references are to the Internal Revenue
Complete Schedule I if the estate or
computation of its adjustments and tax
Code unless otherwise noted.
trust claims any general business credit
preference items.
and line 6 of Part I or line 3 of Part III of
Future Developments
Allocation of Deductions to
Form 3800, General Business Credit, is
Beneficiaries
For the latest information about
more than zero.
developments related to Schedule I and
The distributable net alternative
Recordkeeping
its instructions, such as legislation
minimum taxable income (DNAMTI) of
Schedule I contains adjustments and
enacted after they were published, go to
the estate or trust doesn't include
tax preference items that are treated
irs.gov/form1041.
amounts of depreciation, depletion, and
differently for regular tax and AMT
amortization that are allocated to the
What's New
purposes. If you, as fiduciary for the
beneficiaries, just as the distributable
estate or trust, completed a form to
net income of the estate or trust doesn't
AMT tax brackets. The threshold for
figure an item for regular tax purposes,
include these items for regular tax
the 28% AMT tax bracket increased to
you may have to complete it a second
purposes.
amounts over $186,300.
time for AMT purposes. Generally, the
Report separately in box 12 of
difference between the amounts on the
AMT exemption amount and phase
Schedule K-1 (Form 1041),
two forms is the AMT adjustment or tax
out. The AMT exemption amount
Beneficiary's Share of Income,
preference item to enter on Schedule I.
increased to $23,900. The exemption
Deductions, Credits, etc., any
Except for Form 1116, Foreign Tax
amount begins to be phased-out at
adjustments or tax preference items
Credit (Individual, Estate, or Trust), any
amounts over $79,850 and is
attributable to accelerated depreciation
additional form completed for AMT
completely phased-out at $175,450.
(code G), depletion (code H), and
purposes doesn't have to be filed with
Capital gains and qualified divi
amortization (code I) that were allocated
Form 1041.
dends. For tax year 2016, the 20%
to the beneficiaries.
maximum capital gains rate applies to
For regular tax purposes, some
Optional WriteOff for Certain
estates and trusts with income above
deductions and credits may result in
Expenditures
$12,400. The 0% and 15% rates
carrybacks or carryforwards to other tax
continue to apply to certain threshold
years. Examples are investment interest
There is no AMT adjustment for the
amounts. The 0% rate applies to
expense, a net operating loss deduction
following items if the estate or trust
amounts up to $2,550. The 15% rate
(NOLD), a capital loss, and the foreign
elects to deduct them ratably over the
applies to amounts over $2,550 and up
tax credit. Because these items may be
period of time shown for the regular tax.
to $12,400.
refigured for the AMT, the carryback or
Circulation expenditures—3 years
carryforward amount may be different
(section 173).
General Instructions
for regular and AMT purposes.
Research and experimental
Therefore, you should keep records of
expenditures—10 years (section
these different carryforward and
174(a)).
Purpose of Schedule
carryback amounts for the AMT and
Intangible drilling costs—60 months
Use Schedule I (Form 1041) to figure:
regular tax. The AMT carryforward will
(section 263(c)).
The estate's or trust's alternative
be important in completing Schedule I
Mining exploration and development
minimum taxable income;
for 2017.
costs—10 years (sections 616(a) and
The income distribution deduction on
617(a)).
Credit for Prior Year Minimum
a minimum tax basis; and
The election must be made in the
The estate's or trust's alternative
Tax
minimum tax (AMT).
year the expenditure was made and
Estates and trusts that paid AMT in
may be revoked only with IRS consent.
2015, or had a minimum tax credit
Who Must Complete
See section 59(e) and Regulations
carryforward from the 2015 Form 8801,
Schedule I (Form 1041)
section 1.59-1 for more details.
Credit for Prior Year Minimum
Tax—Individuals, Estates, and Trusts,
Complete Parts I and II if the estate or
may be eligible for a minimum tax credit
trust is required to complete Form 1041,
in 2016. See Form 8801.
Schedule B, Income Distribution
Deduction.
Partners and Shareholders
Complete Schedule I if the estate's or
An estate or trust that is a partner in a
trust's share of alternative minimum
partnership or a shareholder in an S
taxable income (Part I, line 29) exceeds
corporation must take into account its
$23,900.
share of items of income and
deductions that enter into the
Jan 24, 2017
Cat. No. 51559W
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