Looking for a Form 8801 Templates? Download it for free!

complete to figure your MTFTCE. You will use these MTFTCE

would be required to adjust your foreign source qualified

Forms 1116 to figure the MTFTCE amount to enter on line 12 of

dividends if you had any.

Form 8801.

To adjust your foreign source capital gain distributions,

Figuring high-taxed income. When applying the separate

multiply your foreign source capital gain distributions in each

categories of income, use the applicable AMT rate instead of the

separate category by 0.5357 (instead of 0.3788) if the foreign

regular tax rate to determine if any income is “high-taxed.”

source capital gain distributions are taxed at a rate of 15%, and

by 0.7143 (instead of 0.5051) if they are taxed at a rate of 20%.

Step 2. Complete Part I of each MTFTCE Form 1116 using only

Include the results on line 1a of the applicable MTFTCE Form

taxable income and exclusion items that are attributable to

1116.

sources outside the United States. See Foreign source qualified

dividends and capital gains (losses) below for possible

You adjust your foreign source capital gain distributions taxed

adjustments.

at a rate of 0% by not including them on line 1a of MTFTCE

Form 1116. For individuals, the amounts taxed at the 0% rate

Simplified limitation election. If you figured your 2015

are on line 11 of the Qualified Dividends and Capital Gain Tax

AMTFTC using the simplified limitation election, skip Part I and

Worksheet in the 2015 Form 1040 instructions, line 9 of the

go to Step 3,

Simplified limitation

election.

Qualified Dividends and Capital Gain Tax Worksheet in the 2015

Foreign source qualified dividends and capital gains (los-

Form 1040NR instructions, or line 20 of the Schedule D Tax

ses). If you had any 2015 foreign source qualified dividends or

Worksheet in the 2015 Schedule D (Form 1040) instructions. For

foreign source capital gains (including any foreign source capital

estate and trusts, the amounts taxed at the 0% tax rate are found

gain distributions) or losses, use the following instructions to

on line 19 of the Schedule D Tax Worksheet in the 2015

determine whether you must make adjustments to those

Schedule D (Form 1041) instructions or line 8 of the Qualified

amounts before you include the amounts on line 1a or line 5 of

Dividends Tax Worksheet in the 2015 Form 1041 instructions,

the MTFTCE Form 1116.

whichever applies.

Foreign qualified dividends. You must adjust your foreign

Don’t adjust the amount of any foreign source capital

source qualified dividends before you include those amounts on

gain distribution you elected to include on line 4g of

line 1a of the MTFTCE Form 1116 if:

Form 4952.

Line 53 of Form 8801 is smaller than line 54, and

CAUTION

Line 32 of Form 8801 is greater than zero.

Other capital gains or losses. Use Worksheet A in the

But you don't need to make any adjustments if:

instructions for the 2015 Form 1116 to determine the

You qualified for the adjustment exception under Qualified

adjustments you must make to your foreign source capital gains

Dividends and Capital Gain Tax Worksheet (Individuals),

or losses if you have foreign source capital gains or losses in no

Qualified Dividends Tax Worksheet (Estates and Trusts), or

more than two separate categories and any of the following

Adjustments to foreign qualified dividends under Schedule D

apply.

Filers, whichever applies, in the Instructions for Form 1116 when

You weren't required to make adjustments to your foreign

you completed your regular tax Form 1116 (or you would've

source qualified dividends under the rules described earlier (or

qualified for that adjustment exception if you had completed a

you wouldn't have been required to make those adjustments if

regular tax Form 1116) for 2015, and

you had foreign source qualified dividends).

Line 32 of Form 8801 isn't more than $185,400 ($92,700 if

Line 15 or 16 of your 2015 Schedule D (Form 1040) (column

married filing separately for 2015 or if you checked filing status

(2) of line 18a or 19 of Schedule D (Form 1041)) is zero or a loss.

box 3, 4, or 5 on Form 1040NR for 2015).

You figured your 2015 tax using the Qualified Dividends and

Capital Gain Tax Worksheet in the Form 1040 instructions and

To adjust your foreign source qualified dividends, multiply

(a) line 3 of that worksheet minus the amount on line 4e of Form

your foreign source qualified dividends in each separate

4952 that you elected to include on line 4g of Form 4952 is zero

category by 0.5357 (instead of 0.3788) if the foreign source

or less, (b) line 7 of that worksheet is zero, or (c) line 25 of that

qualified dividends are taxed at a rate of 15%, and by 0.7143

worksheet is equal to or greater than line 26.

(instead of 0.5051) if they are taxed at a rate of 20%. Include the

You figured your 2015 tax using the Qualified Dividends and

results on line 1a of the applicable MTFTCE Form 1116.

Capital Gain Tax Worksheet in the Form 1040NR instructions

You adjust your foreign source qualified dividends taxed at a

and (a) line 3 of that worksheet is zero, (b) line 5 of that

rate of 0% by not including them on line 1a of MTFTCE Form

worksheet is zero, or (c) line 23 of that worksheet is equal to or

1116. For individuals, the amounts taxed at the 0% rate are on

greater than line 24.

line 11 of the Qualified Dividends and Capital Gain Tax

You figured your 2015 tax using the Schedule D Tax

Worksheet in the 2015 Form 1040 instructions, line 9 of the

Worksheet in the Schedule D (Form 1040) instructions and (a)

Qualified Dividends and Capital Gain Tax Worksheet in the 2015

line 18 of that worksheet is zero, (b) line 9 of that worksheet is

Form 1040NR instructions, or line 20 of the Schedule D Tax

zero, or (c) line 43 of that worksheet is equal to or greater than

Worksheet in the 2015 Schedule D (Form 1040) instructions. For

line 44.

estate and trusts, the amounts taxed at the 0% tax rate are found

You figured your 2015 tax using Schedule D (Form 1041) and

on line 19 of the Schedule D Tax Worksheet in the 2015

(a) line 27 of Schedule D is zero, (b) line 22 of Schedule D minus

Schedule D (Form 1041) instructions or line 8 of the Qualified

the amount on line 4e of Form 4952 that you elected to include

Dividends Tax Worksheet in the 2015 Form 1041 instructions,

on line 4g of Form 4952 is zero or less, or (c) line 43 of

whichever applies.

Schedule D is equal to or greater than line 44.

Don’t adjust the amount of any foreign source qualified

You figured your 2015 tax using the Schedule D Tax

Worksheet in the Schedule D (Form 1041) instructions and (a)

dividend you elected to include on line 4g of Form 4952.

line 17 of that worksheet is zero, (b) line 9 of that worksheet is

CAUTION

zero, or (c) line 42 of that worksheet is equal to or greater than

Individuals with capital gain distributions only. If you had

line 43.

no 2015 capital gains or losses other than capital gain

distributions from box 2a of Form(s) 1099-DIV or substitute

Use Worksheet B in the 2015 Form 1116 instructions if you:

statement(s), you must adjust your foreign source capital gain

Can't use Worksheet A,

distributions before you include those amounts on line 1a of the

Had 2015 foreign source capital gains and losses in no more

MTFTCE Form 1116 if you are required to adjust your foreign

than two separate categories,

source qualified dividends under the rules just described or you

-3-

Instructions for Form 8801 (2016)

Instructions For Form 8801 - Credit For Prior Year Minimum Tax-Individuals, Estates-Trusts - 2016 Page 3

Related Articles

Related forms

Related Categories