Department of the Treasury
Internal Revenue Service
Instructions for Form 8801
Credit for Prior Year Minimum Tax—Individuals, Estates, and Trusts
Section references are to the Internal Revenue Code unless
8801, line 4, the amount from Schedule I, line 29, adjusted for
exclusion items that were allocated to the beneficiary.
Note. If you complete Parts I and II of a 2015 Form 1041,
Schedule I, as a worksheet to figure the amount to enter on 2016
For the latest information about developments related to Form
Form 8801, line 4, don't attach that worksheet Schedule I to
8801 and its instructions, such as legislation enacted after they
your tax return. Instead, keep it for your records.
were published, go to IRS.gov/form8801.
Enter on this line the adjustments and preferences treated as
exclusion items (except the standard deduction). Exclusion
Purpose of Form
items are only the following AMT adjustments and preferences:
itemized deductions (including any investment interest expense
Use Form 8801 if you are an individual, estate, or trust to figure
reported on Schedule E), certain tax-exempt interest, depletion,
the minimum tax credit, if any, for alternative minimum tax (AMT)
the section 1202 exclusion, and any other adjustments related to
you incurred in prior tax years and to figure any credit
exclusion items. Don't include the standard deduction. It has
carryforward to 2017.
already been included on line 1. Combine lines 2 through 5, 7
Who Should File
through 9, 12, and 13 of your 2015 Form 6251. Don't include any
amount from line 15 of the 2015 Form 6251. Instead, include the
Complete Form 8801 if you are an individual, estate, or trust that
exclusion item amount from the Schedule(s) K-1 (Form 1041)
for 2015 had:
you received for 2015. That amount is shown in box 12 with
An AMT liability and adjustments or preferences other than
code J. If you included on line 27 of the 2015 Form 6251 any
adjustments related to exclusion items, also include those
A credit carryforward to 2016 (on 2015 Form 8801, line 26), or
adjustments in the amount you enter on line 2. Enter the total on
An unallowed qualified electric vehicle credit (see the
instructions for line 20).
Exclusion items on other lines. If you included any exclusion
File Form 8801 only if line 21 is more than zero.
item on a line not listed above, include that item in the amount
you enter on line 2. For example, if depletion was included on
Form 6251 as an adjustment on line 19 (passive activities)
instead of on line 9 (depletion), include it as an exclusion item in
the amount you enter on line 2.
The AMT is a separate tax that is imposed in addition to your
regular tax. It is caused by two types of adjustments and
preferences—deferral items and exclusion items. Deferral items
Your MTCNOLD is the total of the minimum tax credit net
(for example, depreciation) generally don't cause a permanent
operating loss (MTCNOL) carryovers and carrybacks to 2015.
difference in taxable income over time. Exclusion items (for
Your MTCNOL is figured as follows.
example, the standard deduction), on the other hand, do cause
a permanent difference. The minimum tax credit is allowed only
Your MTCNOL is the excess of the deductions (excluding the
for the AMT caused by deferral items.
MTCNOLD) over the income used to figure alternative minimum
taxable income (AMTI) taking into account only exclusion items.
Part I—Net Minimum Tax on
Figure this excess with the modifications in section 172(d) taking
into account only exclusion items. (That is, the section 172(d)
modifications must be figured separately for the MTCNOL.)
Line 1—Estates and Trusts
For example, the limitation of nonbusiness deductions to the
amount of nonbusiness income must be figured separately for
These line 1 instructions are for estates and trusts only. Skip
the MTCNOL using only nonbusiness income and deductions
lines 1 through 3 of Form 8801. To figure the amount to enter on
but taking into account only exclusion items. However, ignore
line 4 of Form 8801, complete Parts I and II of another 2015
the disallowance of the deduction for personal exemptions under
Form 1041, Schedule I, as a worksheet. After completing lines 1
section 172(d)(3) because it has already been taken into
and 7 of Schedule I, complete the rest of Part I of Schedule I by
account to figure AMTI attributable only to exclusion items.
taking into account only exclusion items (the amounts included
on lines 2 through 6, 8, and 9, and any other adjustments related
To determine the amount of MTCNOL that may be carried to
to exclusion items included on line 23 of Schedule I). On line 24
tax years other than 2015, apply sections 172(b)(2) and 172(d)
of Schedule I, use the minimum tax credit net operating loss
with appropriate modifications to take into account only
deduction (MTCNOLD). However, don't limit the MTCNOLD to
90% of the total of lines 1 through 23 of Schedule I. (See the
instructions for line 3 of Form 8801 for how to figure the
MTCNOLD.) In Part II of Schedule I, complete lines 35 and 36
If your filing status was married filing separately for 2015 and
without taking into account any basis adjustments arising from
line 4 is more than $246,250, you must include an additional
deferral items. If the amount on Schedule I, line 29, is zero or
amount on line 4. If line 4 is $413,050 or more, include an
less, enter -0- on Form 8801, line 4. Otherwise, enter on Form
additional $41,700 on line 4. Otherwise, include 25% of the
Nov 02, 2016
Cat. No. 10600C