Instructions For Schedule I (Form 1041) - 2016 (Page 3 of 9) in pdf

Section 1250 property placed in

election must be made no later than 30

The $3,000 capital loss

service after 1998 that isn't depreciated

days after the date of transfer.

limitation for the regular tax

for the regular tax using the straight line

applies separately for the AMT.

method, and

CAUTION

If the estate or trust acquired stock by

Tangible property placed in service

First, figure any ordinary income

exercising an option and it disposed of

after 1986 and before 1999. If the

adjustment related to 3, earlier. Then,

that stock in the same year, the tax

transitional election was made under

refigure Form 4684, Form 4797, Form

treatment under the regular tax and the

section 203(a)(1)(B) of the Tax Reform

8949, and Schedule D (Form 1041) for

AMT is the same, and no adjustment is

Act of 1986, this rule applies to property

the AMT, if applicable, by taking into

required.

placed in service after July 31, 1986.

account any adjustments you made this

What depreciation isn't refigured for

Increase the AMT basis of any stock

year or in previous years that affect the

the AMT? Don’t refigure depreciation

acquired through the exercise of an

estate's or trust's basis or otherwise

for the AMT for the following items.

incentive stock option by the amount of

result in a different amount for AMT. If

Residential rental property placed in

the adjustment.

the estate or trust has a capital loss after

service after 1998.

refiguring Schedule D for the AMT,

Note. If a Form 3921, Exercise of an

Nonresidential real property with a

apply the $3,000 capital loss limitation

Incentive Stock Option Under Section

class life of 27.5 years or more placed in

separately to the AMT loss. For each of

422(b), was received, it may help you

service after 1998 that is depreciated for

the four items listed above, figure the

figure the adjustment.

the regular tax using the straight line

difference between the amount included

method.

in taxable income for the regular tax and

Line 11—Other Estates and

Other section 1250 property placed in

the amount included in income for the

Trusts

service after 1998 that is depreciated for

AMT. Treat the difference as a negative

the regular tax using the straight line

If the estate or trust is the beneficiary of

amount if (a) both the AMT and regular

method.

another estate or trust, enter the

tax amounts are zero or more and the

Property (other than section 1250

adjustment for minimum tax purposes

AMT amount is less than the regular tax

property) placed in service after 1998

from box 12, code A, Schedule K-1

amount or (b) the AMT amount is a loss,

that is depreciated for the regular tax

(Form 1041).

and the regular tax amount is a smaller

using the 150% declining balance

loss, or zero or more.

Line 12—Electing Large

method or the straight line method.

Partnerships

Enter on line 13 the combined

Property for which you elected to use

adjustments for the four items earlier.

the alternative depreciation system

If the estate or trust is a partner in an

(ADS) of section 168(g) for the regular

electing large partnership, enter on

Line 14—Depreciation on

tax.

line 12 the amount from Schedule K-1

Assets Placed in Service After

Qualified property that is or was

(Form 1065-B), Partner's Share of

1986

eligible for the special depreciation

Income (Loss) From an Electing Large

allowance if the depreciable basis of the

Partnership, box 6. Take into account

This section describes when

property for the AMT is the same as for

any amount from Schedule K-1 (Form

depreciation must be refigured for the

the regular tax. This applies to any

1065-B), box 5, when figuring the

AMT and how to figure the amount to

special depreciation allowance,

amount to enter on line 15.

enter on line 14.

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

An activity for which the estate or

biofuel plant property, qualified New

Use this line to report any AMT

trust isn't at risk or income or loss from a

York Liberty Zone property, qualified

adjustment related to the disposition of

partnership or an S corporation if the

Gulf Opportunity Zone property, and

property resulting from refiguring:

basis limitations under section 704(d) or

Kansas disaster area qualified recovery

1. Gain or loss from the sale,

1366(d) apply. Take this adjustment into

assistance property. The special

exchange, or involuntary conversion of

account on line 16;

allowance is deductible for the AMT,

property reported on Form 4797, Sales

A tax shelter farm activity. Take this

and there also is no adjustment required

of Business Property;

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

depreciation if it was placed in service

4. Capital gain or loss (including any

method (generally 3-, 5-, 7-, or 10-year

before 2016. It is not subject to an AMT

carryover that is different for the AMT)

property under the modified accelerated

adjustment for depreciation if it was

reported on Form 8949, Sales and

cost recovery system (MACRS), except

placed in service after 2015.

Other Dispositions of Capital Assets, or

for certain qualified property eligible for

Motion picture films, videotapes, or

Schedule D (Form 1041), Capital Gains

the special depreciation allowance

sound recordings.

and Losses.

(discussed later)),

2016 Instructions for Schedule I (Form 1041)

Instructions For Schedule I (Form 1041) - 2016 Page 3

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