Userid: CPM Schema: Leadpct: 100% Pt. size: 9.5 Draft Ok to Print instrx AH XSL/XML Fileid: … /I1041SCHI/2020/A/XML/Cycle03/source (Init. & Date) ______Page 1 of 10 13:22 - 13-Jan-2021

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

Department of the Treasury 2020 Internal Revenue Service Instructions for Schedule I (Form 1041) Alternative Minimum Tax—Estates and Trusts

Section references are to the Internal Revenue See Line 1 Adjusted total income or estate or trust, completed a form to Code unless otherwise noted. (loss), later. figure an item for regular tax purposes, you may have to complete it a second Biofuel producer credit and biodie- Future Developments time for AMT purposes. Generally, the sel and renewable diesel fuels cred- For the latest information about difference between the amounts on the it. If you claim any of these credits for developments related to Schedule I and two forms is the AMT adjustment or tax tax year 2020, you may also need to its instructions, such as legislation preference item to enter on Schedule I. make an adjustment on line 21. See enacted after they were published, go to Except for Form 1116, Foreign Tax Line 21 Other Adjustments, later. IRS.gov/Form1041. Credit (Individual, Estate, or Trust), any additional form completed for AMT What's New General Instructions purposes doesn't have to be filed with Form 1041. Excess business loss limitation. Recent legislation has repealed the Purpose of Schedule Use Schedule I (Form 1041) to figure: For regular tax purposes, some excess business loss limitation of deductions and credits may result in noncorporate taxpayers (Form 461) for • The estate's or trust's alternative minimum taxable income; carrybacks or carryforwards to other tax 2020 (and retroactively to 2018 and years. Examples are investment interest 2019). If you filed a 2018 or 2019 return • The income distribution deduction on a minimum tax basis; and expense, a net operating loss deduction with the limitation, you can file an (NOLD), a capital loss, and the foreign amended Form 1041. • The estate's or trust's alternative minimum tax (AMT). tax credit. Because these items may be AMT tax brackets. The threshold for refigured for the AMT, the carryback or ESBTs. An ESBT must figure the the 28% AMT tax bracket increased to carryforward amount may be different AMT for the S and non-S portions of the amounts over $197,900. for regular and AMT purposes. trust on separate Schedules I (Form Therefore, you should keep records of AMT exemption amount and phase- 1041). The Schedule I for each portion these different carryforward and out. The AMT exemption amount includes only the income, deductions, carryback amounts for the AMT and increased to $25,400. The exemption and credits attributable to that portion. regular tax. The AMT carryforward will amount begins to be phased-out at be important in completing Schedule I amounts over $84,800 and is Who Must Complete for 2021. completely phased-out at $186,400. Schedule I (Form 1041) Credit for Prior Year Minimum Capital gains and qualified divi- • Complete Parts I and II if the estate or dends. For tax year 2020, the 20% trust is required to complete Form 1041, Tax maximum capital gains rate applies to Schedule B, Income Distribution Estates and trusts that paid AMT in estates and trusts with income above Deduction. 2019, or had a minimum tax credit $13,150. The 0% and 15% rates • Complete Schedule I if the estate's or carryforward from the 2019 Form 8801, continue to apply to certain threshold trust's share of alternative minimum Credit for Prior Year Minimum amounts. The 0% rate applies to taxable income (Part I, line 27) exceeds Tax—Individuals, Estates, and Trusts, amounts up to $2,650. The 15% rate $25,400. may be eligible for a minimum tax credit applies to amounts over $2,650 and up • Complete Schedule I if the estate or in 2020. See Form 8801. to $13,150. trust claims any general business credit Partners and Shareholders and line 6 of Part I or line 3 of Part III of Reminders Form 3800, General Business Credit, is An estate or trust that is a partner in a more than zero. partnership or a shareholder in an S Section 199A deduction. The section ESBTs. Complete Schedule I if the corporation must take into account its 199A deduction isn't included in the • alternative minimum taxable income share of items of income and amount reported on line 1. To figure (Part I, line 27) of the S portion of the deductions that enter into the your adjusted alternative minimum trust is more than zero or the S portion computation of its adjustments and tax taxable income, any section 199A of the trust claims any general business preference items. deduction taken on line 20 of Form 1041 credit and line 6 of Part I or line 3 of Part must be included as a negative amount Allocation of Deductions to III of the Form 3800 is more than zero. on line 21. Beneficiaries ESBT reporting. The instructions have Recordkeeping The distributable net alternative been updated to include directions for Schedule I contains adjustments and minimum taxable income (DNAMTI) of Electing small business trusts (ESBTs). tax preference items that are treated the estate or trust doesn't include differently for regular tax and AMT amounts of depreciation, depletion, and purposes. If you, as fiduciary for the amortization that are allocated to the

Jan 13, 2021 Cat. No. 51559W Page 2 of 10 Fileid: … /I1041SCHI/2020/A/XML/Cycle03/source 13:22 - 13-Jan-2021

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

beneficiaries, just as the distributable Worksheet, line 13). See the ESBT Tax Line 3—Taxes net income of the estate or trust doesn't Worksheet in the Instructions for Form Enter any state or local real property include these items for regular tax 1041. taxes; state or local personal property purposes. Line 2—Interest taxes; state and local general sales Report separately in box 12 of In determining the alternative minimum taxes; and any state, local, or foreign Schedule K-1 (Form 1041), taxable income, qualified residence income taxes that were included on Beneficiary's Share of Income, interest (other than qualified housing Form 1041, page 1, line 11. Deductions, Credits, etc., any interest defined in section 56(e)) isn't Line 4—Refund of Taxes adjustments or tax preference items allowed. attributable to accelerated depreciation Enter any refunds received in 2020 of (code G), depletion (code H), and If you completed Form 4952, taxes described for line 3 above and amortization (code I) that were allocated Investment Interest Expense Deduction, included in income. Also, include to the beneficiaries. for regular tax purposes, you may have foreign real property taxes that were an adjustment on this line. Refigure your deducted in years prior to 2020, but Optional Write-Off for Certain investment interest expense on a refunded in 2020 and included in Expenditures separate AMT Form 4952 as follows. income on Form 1041. There is no AMT adjustment for the Step 1. On line 1 of the AMT Form Line 5—Depletion following items if the estate or trust 4952, follow the instructions for that line, Refigure the depletion deduction for elects to deduct them ratably over the but also include the following amounts. period of time shown for the regular tax. AMT purposes by using only the income • Any qualified residence interest and deductions allowed for the AMT • Circulation expenditures—3 years (other than qualified housing interest) (section 173). when refiguring the limit based on that was paid or accrued on a loan or taxable income from the property under • Research and experimental part of a loan that is allocable to expenditures—10 years (section section 613(a) and the limit based on property held for investment as defined taxable income, with certain 174(a)). in section 163(d)(5) (for example, • Intangible drilling costs—60 months adjustments, under section 613A(d)(1). interest on a home equity loan whose Also, the depletion deduction for mines, (section 263(c)). proceeds were invested in stocks or • Mining exploration and development wells, and other natural deposits under bonds). section 611 is limited to the property's costs—10 years (sections 616(a) and • Any interest that would have been 617(a)). adjusted basis at the end of the year, as deductible if interest on specified private refigured for the AMT, unless the estate The election must be made in the activity bonds had been included in or trust is an independent producer or year the expenditure was made and income. See the instructions for line 7 royalty owner claiming percentage may be revoked only with IRS consent. for the definition of specified private depletion for oil and gas wells. Figure See section 59(e) and Regulations activity bonds. this limit separately for each property. section 1.59-1 for more details. Step 2. On line 2, enter the AMT When refiguring the property's adjusted disallowed investment interest expense basis, take into account any AMT from 2019. adjustments made this year or in Specific Instructions previous years that affect basis (other ESBTs. Use a separate Step 3. When completing Part II of the than the current year's depletion). AMT Form 4952, refigure gross income ! Schedule I (Form 1041) to figure Enter on line 5 the difference CAUTION the AMT for the S portion of the from property held for investment, any net gain from the disposition of property between the regular tax and AMT trust. Add the notation “ESBT” to the top deduction. If the AMT deduction is more of the Schedule I and attach it to the tax held for investment, net capital gain from the disposition of property held for than the regular tax deduction, enter the computation attachment for Form 1041. difference as a negative amount. See the ESBT Tax Worksheet in the investment, and any investment Instructions for Form 1041. expenses, taking into account all AMT Line 6—Net Operating Loss adjustments and tax preference items Deduction Where these instructions refer to that apply. Include any interest income Enter any NOLD from line 15b of page 1 completing other forms and worksheets, and investment expenses from private of the Form 1041 as a positive amount. you must complete separate forms and activity bonds issued after August 7, worksheets for the S and non-S portions 1986. Line 7—Interest From Specified of the trust. Where necessary, add an When completing line 4g of the AMT Private Activity Bonds Exempt “ESBT” notation at the top of the form or Form 4952, enter the smaller of: From the Regular Tax worksheet to show it relates to the • The amount from line 4g of the computation for the S portion of the regular tax Form 4952, or Enter the interest earned from specified trust. • The total of lines 4b and 4e of the private activity bonds reduced (but not AMT Form 4952. below zero) by any deduction that would Part I—Estate's or Trust's have been allowable if the interest were Step 4. Complete Part III. includible in gross income for regular tax Share of Alternative Enter on Schedule I, line 2 the purposes. Each payer of this type of Minimum Taxable Income difference between line 8 of the AMT interest should send a Form 1099-INT, Line 1—Adjusted total income Form 4952 and line 8 of the regular tax Interest Income, to the estate or trust Form 4952. If the AMT deduction is showing the amount of this interest in or (loss) greater, enter the difference as a box 9. Generally, specified private Adjusted total income or (loss) (from negative amount. activity bonds are any qualified bonds Form 1041, line 17 or ESBT Tax (as defined in section 141) issued after

-2- 2020 Instructions for Schedule I (Form 1041) Page 3 of 10 Fileid: … /I1041SCHI/2020/A/XML/Cycle03/source 13:22 - 13-Jan-2021

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

August 7, 1986, and before 2009 or election must be made no later than 30 First, figure any ordinary income after 2010, the interest on which isn't days after the date of transfer. adjustment related to 3, earlier. Then, includible in gross income for the refigure Form 4684, Form 4797, Form regular tax. See section 57(a)(5) for If the estate or trust acquired stock by 8949, and Schedule D (Form 1041) for more information. exercising an option and it disposed of the AMT, if applicable, by taking into that stock in the same year, the tax account any adjustments you made this Don’t include interest on qualified treatment under the regular tax and the year or in previous years that affect the Gulf Opportunity Zone bonds described AMT is the same, and no adjustment is estate's or trust's basis or otherwise in section 1400N(a) or qualified required. result in a different amount for AMT. Midwestern disaster area bonds. Increase the AMT basis of any stock When you refigure your gain or loss on acquired through the exercise of an Form 8949 for AMT, the amount of gain Exempt-interest dividends paid by a you elected to defer for regular tax regulated investment company are incentive stock option by the amount of the adjustment. purposes due to an investment in a treated as interest from specified private qualified opportunity fund may need to activity bonds to the extent the be adjusted on your AMT Form 8949. dividends are attributable to interest on Note. If a Form 3921, Exercise of an Incentive Stock Option Under Section An adjustment may be required if the the bonds received by the company, regular tax and AMT adjusted basis of minus an allocable share of the 422(b), was received, it may help you figure the adjustment. the property you sold prior to your expenses paid or incurred by the investment is different. company in earning the interest. This Line 10—Other Estates and amount should also be reported to the Trusts If the estate or trust has a capital loss estate or trust on Form 1099-DIV in after refiguring Schedule D for the AMT, box 12. If the estate or trust is the beneficiary of apply the $3,000 capital loss limitation another estate or trust, enter the Line 8—Qualified Small separately to the AMT loss. For each of adjustment for minimum tax purposes the four items listed above, figure the Business Stock from box 12, code A, Schedule K-1 difference between the amount included If the estate or trust claimed the (Form 1041). in taxable income for the regular tax and exclusion under section 1202 for gain ESBTs. Enter an amount on this line the amount included in income for the on qualified small business stock only if the S corporation was a AMT. Treat the difference as a negative acquired before September 28, 2010, beneficiary of an estate or trust, amount if (a) both the AMT and regular and held more than 5 years, multiply the received a Schedule K-1 (Form 1041) tax amounts are zero or more and the excluded gain (as shown on Form 8949 from the estate or trust with an entry in AMT amount is less than the regular tax in column (g)) by 7% (.07). Enter the box 12, code A, and the S corporation amount or (b) the AMT amount is a loss, result on line 8 as a positive amount. allocated a portion of the box 12, code A and the regular tax amount is a smaller Line 9—Exercise of Incentive amount to the ESBT. See Schedule K-1 loss, or zero or more. (Form 1120-S), box 15, code F. Stock Options Enter on line 11 the combined For regular tax purposes, no income is Line 11—Disposition of adjustments for the four items earlier. recognized when an incentive stock Property Line 12—Depreciation on option (as defined in section 422(b)) is Use this line to report any AMT Assets Placed in Service After exercised. However, this rule doesn't adjustment related to the disposition of apply for AMT purposes. Instead, the property resulting from refiguring: 1986 estate or trust must generally include on 1. Gain or loss from the sale, This section describes when line 9 the excess, if any, of: exchange, or involuntary conversion of depreciation must be refigured for the 1. The fair market value (FMV) of property reported on Form 4797, Sales AMT and how to figure the amount to the stock acquired through exercise of of Business Property; enter on line 12. the option (determined without regard to 2. Casualty gain or loss to business Don’t include on this line any any lapse restriction) when its rights in or income-producing property reported depreciation adjustment from: the acquired stock first become on Form 4684, Casualties and Thefts; • An activity for which the estate or transferable or when these rights are no 3. Ordinary income from the trust isn't at risk or income or loss from a longer subject to a substantial risk of partnership or an S corporation if the forfeiture, over disposition of property not taken into account in 1 or 2 above or on any other basis limitations under section 704(d) or 2. The amount paid for the stock, line on Schedule I, such as a 1366(d) apply. Take this adjustment into including any amount paid for the option disqualifying disposition of stock account on line 14; used to acquire the stock. acquired in a prior year by exercising an • A tax shelter farm activity. Take this adjustment into account on line 21; or Even if the estate's or trust's incentive stock option; and • A passive activity. Take this TIP rights in the stock aren't 4. Capital gain or loss (including any adjustment into account on line 13. transferable and are subject to a carryover that is different for the AMT) substantial risk of forfeiture, you may reported on Form 8949, Sales and What depreciation must be refigured elect to include in AMT income the Other Dispositions of Capital Assets, or for the AMT? Generally, you must excess of the stock's FMV (determined Schedule D (Form 1041), Capital Gains refigure depreciation for the AMT, without regard to any lapse restriction) and Losses. including depreciation allocable to over the exercise price upon the transfer inventory costs, for: to the estate or trust of the stock The $3,000 capital loss • Property placed in service after 1998 acquired through exercise of the option. ! limitation for the regular tax that is depreciated for the regular tax CAUTION See section 83(b) for more details. The applies separately for the AMT. using the 200% declining balance

2020 Instructions for Schedule I (Form 1041) -3- Page 4 of 10 Fileid: … /I1041SCHI/2020/A/XML/Cycle03/source 13:22 - 13-Jan-2021

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

method (generally 3-, 5-, 7-, or 10-year placed in service before 2016. It is not See Pub. 946 for optional tables property under the modified accelerated subject to an AMT adjustment for TIP that can be used to figure AMT cost recovery system (MACRS), except depreciation if it was placed in service depreciation. Rev. Proc. 89-15, for certain qualified property eligible for after 2015. 1989-1 C.B. 816, has special rules for the special depreciation allowance • Motion picture films, videotapes, or short tax years and for property (discussed later)), sound recordings. disposed of before the end of the • Section 1250 property placed in • Property depreciated under the recovery period. service after 1998 that isn't depreciated unit-of-production method or any other for the regular tax using the straight line method not expressed in a term of How is the line 12 adjustment fig- method, and years. ured? Subtract the AMT deduction for • Tangible property placed in service • Qualified Indian reservation property. depreciation from the regular tax after 1986 and before 1999. If the • A natural gas gathering line placed in deduction and enter the result. If the transitional election was made under service after April 11, 2005. AMT deduction is more than the regular section 203(a)(1)(B) of the Tax Reform tax deduction, enter the difference as a How is depreciation refigured for the Act of 1986, this rule applies to property negative amount. AMT? See methods below. placed in service after July 31, 1986. In addition to the AMT adjustment to What depreciation isn't refigured for Property placed in service before your deduction for depreciation, you the AMT? Don’t refigure depreciation 1999. Refigure depreciation for the must also adjust the amount of for the AMT for the following items. AMT using ADS with the same depreciation that was capitalized, if any, • Residential rental property placed in convention used for the regular tax. See to account for the difference between service after 1998. the table below for the method and the rules for the regular tax and the • Nonresidential real property with a recovery period to use. AMT. Include on this line the current class life of 27.5 years or more placed in year adjustment to taxable income, if Property Placed in Service Before 1999 service after 1998 that is depreciated for any, resulting from the difference. the regular tax using the straight line IF the property is... THEN use the... Line 13—Passive Activities method. Section 1250 property. Straight line method • Other section 1250 property placed in over 40 years. Don’t enter again elsewhere on service after 1998 that is depreciated for this schedule any AMT Tangible property Straight line method ! CAUTION adjustment or tax preference the regular tax using the straight line (other than section over the property's method. 1250 property) AMT class life. item included on this line. Property (other than section 1250 • depreciated using For AMT purposes, the rules described property) placed in service after 1998 straight line for the in section 469 apply, except that in that is depreciated for the regular tax regular tax. applying the limitations, minimum tax using the 150% declining balance Any other tangible 150% declining rules apply. method or the straight line method. property. balance method, • Property for which you elected to use switching to straight Refigure passive activity gains and the alternative depreciation system line the first tax year it losses on an AMT basis. Refigure a (ADS) of section 168(g) for the regular gives a larger passive activity gain or loss by taking deduction, over the tax. into account all AMT adjustments or tax • Qualified property that is or was property's AMT class life. preference items that pertain to that eligible for the special depreciation activity. allowance if the depreciable basis of the property for the AMT is the same as for You may complete a second Form the regular tax. This applies to any 8582, Passive Activity Loss Limitations, special depreciation allowance, Property placed in service after to determine the passive activity losses including those for disaster assistance 1998. Use the same convention and allowed for AMT purposes, but don't property, reuse and recycling property, recovery period used for the regular tax. send this AMT Form 8582 to the IRS. cellulosic biofuel plant property, second For property other than section 1250 generation biofuel plant property, New property, use the 150% declining Enter the difference between the loss York Liberty Zone property, Gulf balance method, switching to straight reported for regular tax purposes and Opportunity Zone property, and Kansas line the first tax year it gives a larger the AMT loss, if any. disaster area recovery assistance deduction. For section 1250 property, The amount of any passive property. The special allowance is use the straight line method. activity loss that isn't deductible deductible for the AMT, and there also How is the AMT class life deter- (and is therefore carried is no adjustment required for any mined? The class life used for the AMT forward) for AMT purposes is likely to depreciation figured on the remaining isn't necessarily the same as the differ from the amount (if any) that is basis of the qualified property if the recovery period used for the regular tax. carried forward for regular tax purposes. depreciable basis of the property for the The class lives for the AMT are listed in Therefore, it is essential that you retain AMT is the same as for the regular tax. Rev. Proc. 87-56, 1987-2 C.B. 674, and adequate records for both AMT and Property for which an election is in effect in Pub. 946, How To Depreciate regular tax purposes. to not have the special allowance apply Property. Use 12 years for any tangible isn't qualified property. In addition, if you personal property not assigned a class Publicly traded partnerships (PTPs). elect not to have any special life. If the estate or trust had a loss from a depreciation allowance apply, the PTP, refigure the loss using any AMT property may be subject to an AMT adjustments, tax preference items, and adjustment for depreciation if it was any AMT prior year unallowed loss.

-4- 2020 Instructions for Schedule I (Form 1041) Page 5 of 10 Fileid: … /I1041SCHI/2020/A/XML/Cycle03/source 13:22 - 13-Jan-2021

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

Line 14—Loss Limitations income is smaller, enter the difference experimental costs haven't been fully as a negative amount. amortized for the AMT, the AMT If the loss is from a passive deduction is the smaller of (a) the loss ! activity, use line 13 instead. If Line 17—Mining Costs allowable for the costs had they CAUTION the loss is from a tax shelter Don’t make this adjustment for remained capitalized or (b) the farm activity (that isn't passive), use costs for which you elected the remaining costs to be amortized for the line 21. optional 10-year write-off period AMT. Refigure your allowable losses for AMT under section 59(e) for regular tax Line 19—Income From Certain purposes. purposes from activities for which you Installment Sales Before aren't at risk and basis limitations Expenditures for the development or January 1, 1987 applicable to interests in partnerships exploration of a mine or certain other The installment method doesn't apply and stock in S corporations by taking mineral deposits (other than an oil, gas, for AMT purposes to any nondealer into account your AMT adjustments and or geothermal well) deducted under disposition of property that occurred tax preference items. See sections sections 616(a) and 617(a) for regular after August 16, 1986, but before the 59(h), 465, 704(d), and 1366(d). tax purposes must be amortized for first day of your tax year that began in AMT purposes over 10 years beginning Enter the difference between the loss 1987, if an installment obligation to with the year the expenditures were reported for regular tax purposes and which the proportionate disallowance paid or incurred. the AMT loss. If the AMT loss is more rule applied arose from the disposition. than the loss reported for regular tax Enter the difference between the Enter on line 19 the amount of purposes, enter the adjustment as a amount allowed for AMT purposes and installment sale income that was negative amount. the amount allowed for regular tax reported for regular tax purposes. Line 15—Circulation Costs purposes. If the amount allowed for AMT purposes exceeds the amount Line 20—Intangible Drilling Don’t make this adjustment for deducted for regular tax purposes, enter Costs Preference (IDCs) expenditures for which you the difference as a negative amount. Don’t make this adjustment for elected the optional 3-year costs for which you elected the write-off period for regular tax purposes. If the estate or trust had a loss on property for which mining expenditures optional 60-month write-off Circulation expenditures deducted haven't been fully amortized for the under section 59(e) for regular tax under section 173(a) for regular tax AMT, the AMT deduction is the smaller purposes. purposes must be amortized for AMT of (a) the amount of the loss allowable IDCs from oil, gas, and geothermal purposes over 3 years beginning with for the expenditures had they remained wells are a preference to the extent that the year the expenditures were paid or capitalized or (b) the remaining the excess IDCs exceed 65% of the net incurred. expenditures to be amortized for the income from the wells. Figure the AMT. Enter the difference between the preference for all oil and gas properties regular tax and AMT deduction. If the Line 18—Research and separately from the preference for all AMT deduction is greater, enter the Experimental Costs geothermal properties. difference as a negative amount. Don’t make this adjustment for Figure excess IDCs as follows: If the estate or trust had a loss on costs paid or incurred in 1. Determine the amount of the property for which circulation connection with an activity in estate's or trust's IDCs allowed for the expenditures haven't been fully which the estate or trust materially regular tax under section 263(c), but amortized for the AMT, the AMT participated under the passive activity don’t include any section 263(c) deduction is the smaller of (a) the rules or for costs for which you elected deduction for nonproductive wells, then amount of the loss allowable for the the optional 10-year write-off for 2. Subtract the amount that would expenditures had they remained research and experimental have been allowed had you amortized capitalized or (b) the remaining expenditures under section 59(e) for these IDCs over a 120-month period expenditures to be amortized for the regular tax purposes. starting with the month the well was AMT. Research and experimental placed in production. Line 16—Long-Term Contracts expenditures deducted under section Cost depletion can be For AMT purposes, the percentage of 174(a) for regular tax purposes substituted for the amount completion method of accounting generally must be amortized for AMT allowed using amortization over described in section 460(b) generally purposes over 10 years beginning with 120 months. must be used. However, this rule the year the expenditures were paid or doesn't apply to any home construction incurred. Net income. Determine net income by reducing the gross income that the contract (as defined in section 460(e) Enter the difference between the estate or trust received or accrued (6)). amount allowed for AMT purposes and during the tax year from all oil, gas, and the amount allowed for regular tax geothermal wells by the deductions Note. Contracts described in section purposes. If the amount for AMT allocable to those wells (reduced by the 460(e)(1)(B) are subject to the simplified purposes exceeds the amount allowed excess IDCs). When refiguring net method of cost allocation of section for regular tax purposes, enter the income, use only income and 460(b)(4). difference as a negative amount. deductions allowed for the AMT. Enter the difference between the If the estate or trust had a loss on AMT and regular tax income. If the AMT property for which research and

2020 Instructions for Schedule I (Form 1041) -5- Page 6 of 10 Fileid: … /I1041SCHI/2020/A/XML/Cycle03/source 13:22 - 13-Jan-2021

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

Exception. The preference for IDCs of 15 years (22 years for 15-year public for the activity on line 11 instead of from oil and gas wells doesn't apply to utility property). Figure this amount line 21. taxpayers who are independent separately for each property and include • Biofuel producer credit and producers (that is, not integrated oil on line 21 only positive amounts. biodiesel and renewable diesel fuels companies as defined in section 291(b) • Amortization of pollution control credit. If the adjusted total income (4)). However, this benefit may be facilities. The amortization deduction (Form 1041, line 17) includes the limited. First, figure the IDC preference under section 169 must be refigured for amount of the biofuel producer credit or as if this exception didn't apply. For the AMT. For facilities placed in service biodiesel and renewable diesel fuels purposes of this exception, complete after 1986 and before 1999, figure the credit, include that amount as a and combine lines 1 through 21, amortization deduction for the AMT negative amount on line 21. including the IDC preference. If the using the ADS described in section • Related adjustments. AMT amount of the IDC preference exceeds 168(g). For facilities placed in service adjustments and tax preference items 40% of the total of lines 1 through 21, after 1998, figure the AMT deduction may affect deductions that are based on enter the excess on line 20 (the benefit under MACRS using the straight line an income limit other than adjusted of this exception is limited). Otherwise, method. Enter the difference between gross income (AGI) or modified AGI (for don’t enter an amount on line 20 (the the regular tax and AMT deduction. If example, farm conservation expenses). estate's or trust's benefit from this the AMT amount is greater, enter the Refigure these deductions using the exception isn't limited). difference as a negative amount. income limit as modified for the AMT. • Tax shelter farm activities. Figure Include the difference between the Line 21—Other Adjustments this adjustment only if the tax shelter regular tax and AMT deduction on Enter on line 21 the total of any other farm activity (as defined in section 58(a) line 21. If the AMT deduction is more adjustments that apply including the (2)) isn't a passive activity. If the activity than the regular tax deduction, include following. is passive, include it with any other the difference as a negative amount. passive activities on line 13. • Section 199A deduction. Include as Don’t make an adjustment on a negative amount on line 21 the section Refigure all gains and losses line 21 for an item you refigured 199A deduction shown on Form 1041, reported for the regular tax from tax on another line of Schedule I line 20. shelter farm activities by taking into (for example, line 5). ESBTs. Don't include any account any AMT adjustments and ! section 199A deduction taken preferences. Determine tax shelter farm Business interest limitation. CAUTION on line 11, Qualified business activity gain or loss for the AMT using Complete an AMT Form 8990 using income deduction (S portion), of your the same rules used for the regular tax amounts adjusted for AMT. Enter the ESBT Tax Worksheet on line 21 when with the following modifications. No difference between the AMT and regular figuring your adjusted alternative refigured loss is allowed, except to the tax allowable interest expense. If line 30 minimum taxable income for the S extent an estate or trust is insolvent (see of the AMT Form 8990 is more than the portion of your trust. This amount is section 58(c)(1)). A refigured loss may amount on line 30 of the regular tax already included on line 1, Adjusted not be used in the current tax year to Form 8890, enter the difference as a total income or (loss), from line 13 of offset gains from other tax shelter farm negative amount. your ESBT Tax Worksheet. activities. Instead, any refigured loss must be suspended and carried forward Line 22—Alternative Tax Net • Depreciation figured using indefinitely until (a) the estate or trust Operating Loss Deduction pre-1987 rules. For AMT purposes, has a gain in a subsequent tax year The ATNOLD is the sum of the use the straight line method to figure from the same activity or (b) the activity alternative tax net operating loss depreciation on real property. Use a is disposed of. (ATNOL) carryovers and carrybacks to recovery period of 19 years for 19-year The AMT amount of any tax shelter the tax year, subject to the limitation real property and 15 years for farm activity loss that isn't deductible explained below. low-income housing. Enter the excess and is carried forward is likely to differ of depreciation claimed for regular tax The net operating loss (NOL) under from the regular tax amount. Keep purposes over depreciation refigured section 172(c) is modified for alternative adequate records for both the AMT and using the straight line method. Figure tax purposes by (a) taking into account regular tax. this amount separately for each property the adjustments made under sections and include on line 21 only positive Enter the difference between the 56 and 58 and (b) reducing the NOL by amounts. amount that would be reported for the any item of tax preference under section activity on Schedule E (Form 1040), For leased personal property other 57. For an estate or trust that held a Supplemental Income and Loss, or than recovery property, enter the residual interest in a real estate Schedule F (Form 1040), Profit or Loss amount by which the regular tax mortgage investment conduit (REMIC), From Farming, for the AMT and the depreciation using the pre-1987 rules figure the ATNOLD without regard to regular tax amount. If (a) the AMT loss exceeds the depreciation allowable any excess inclusion. is more than the regular tax loss, (b) the using the straight line method. For If this estate or trust is the beneficiary AMT gain is less than the regular tax leased 10-year recovery property and of another estate or trust that terminated gain, or (c) there is an AMT loss and a leased 15-year public utility property, in 2020, include any ATNOL carryover regular tax gain, then enter the enter the amount by which the that was reported in box 11, code F of adjustment as a negative amount. depreciation deduction determined for Schedule K-1 (Form 1041). regular tax purposes is more than the Enter any adjustment for amounts The estate's or trust's ATNOLD may deduction allowable using the straight reported on Form 8949, Schedule D be limited. To figure the ATNOLD line method with a half-year convention, (Form 1041), Form 4684, or Form 4797 limitation, first figure alternative no salvage value, and a recovery period minimum taxable income (AMTI) without

-6- 2020 Instructions for Schedule I (Form 1041) Page 7 of 10 Fileid: … /I1041SCHI/2020/A/XML/Cycle03/source 13:22 - 13-Jan-2021

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

regard to the ATNOLD. For this The treatment of ATNOLs doesn't 1. Tax-exempt interest from Form purpose, figure a tentative amount for affect your regular tax NOL. 1041, Schedule A, line 2 figured for line 5 of Schedule I (Form 1041) by AMT purposes, and If you elected under section treating line 22 as if it were zero. Then, TIP 172(b)(3) to forego the 2. Section 212 expenses allowable figure a tentative total by combining carryback period for regular tax for AMT purposes allocable to lines 1–21 of Schedule I (Form 1041) purposes, the election will also apply for tax-exempt interest, from the amount of using the line 5 tentative amount. The the AMT. tax-exempt interest received. ATNOLD limitation is 90% of the result. Don’t subtract any deductions However, the 90% limit doesn't apply Line 27—Estate's or Trust's reported on lines 2 and 3, Schedule I to an ATNOL that is attributable to Share of Alternative Minimum (Form 1041). qualified disaster losses (as defined in Taxable Income section 172(j)), qualified Gulf Section 212 expenses that are Opportunity Zone losses as defined in For an estate or trust that held a residual directly allocable to tax-exempt interest section 1400N(k)(2), qualified recovery interest in a REMIC, line 27 may not be are allocated only to tax-exempt assistance losses (as defined in Pub. less than the estate's or trust's share of interest. A reasonable proportion of 4492-A, Information for Taxpayers the amount on Schedule E (Form 1040), section 212 expenses that are indirectly Affected by the May 4, 2007, Kansas line 38, column (c). If that amount is allocable to both tax-exempt interest Storms and Tornadoes), qualified larger than the amount you would and other income must be allocated to disaster recovery assistance losses (as otherwise enter on line 27, enter that each class of income. amount instead and write “Sch. Q” on defined in Pub. 4492-B, Information for Line 31 Affected Taxpayers in the Midwestern the dotted line next to line 27. Reduce the amount on line 31 by any Disaster Areas) or a 2008 or 2009 loss ESBTs. Enter the amount from line 27 allocable section 1202 exclusion (as that you elected to carryback more than on line 49, and go to line 50. 2 years under section 172(b)(1)(H). If an refigured for AMT purposes). ATNOL that is carried back or carried Part II—Income Line 32 forward to a tax year is attributable to Enter any capital gains that were paid or any of those losses, the ATNOLD for the Distribution Deduction on a Minimum Tax Basis permanently set aside for charitable tax year is limited to the sum of: purposes from the current year's income 1. The smaller of: ESBTs. Do not complete Part II. included on line 1 of Form 1041, a. The sum of the ATNOL ! Schedule A. Reduce the amount on carrybacks and carryforwards to the tax CAUTION line 32 by any allocable section 1202 year attributable to NOLs other than the Line 28—Adjusted Alternative exclusion (as refigured for AMT losses described in 2a below, or purposes). Minimum Taxable Income b. 90% of AMTI for the tax year Lines 33 and 34 The section 199A deduction is (figured without regard to the ATNOLD), Capital gains and losses must take into not included in the distributable plus account any basis adjustments from net alternative taxable income 2. The smaller of: line 11, Part I of Form 1041 (DNAMTI). The section 199A deduction (Schedule I). a. The sum of the ATNOL must be added back to the amount from carrybacks and carryforwards to the tax line 23, Schedule I to calculate the Line 39—Adjustment for year attributable to qualified disaster income distribution deduction on a Tax-Exempt Income losses, qualified Gulf Opportunity Zone minimum tax basis. losses, qualified recovery assistance In figuring the income distribution losses, qualified disaster recovery Generally, enter on line 28, Schedule I, deduction on a minimum tax basis, the assistance losses, and any 2008 or the amount from line 23, Schedule I plus estate or trust isn't allowed a deduction 2009 loss that you elected to carry back the amount of the section 199A for any item of DNAMTI (line 35) that more than 2 years under section 172(b) deduction, if any. However, if Form isn't included in the gross income of the (1)(H), or 1041, page 1, line 4 and line 23, estate or trust figured on an AMT basis. b. 100% of AMTI for the tax year Schedule I (after adding back the Thus, for purposes of figuring the (figured without regard to the ATNOLD) section 199A deduction) are losses, allowable income distribution deduction reduced by the amount determined enter on line 28 the smaller of those on a minimum tax basis, the DNAMTI is under 1, above. losses. If Form 1041, line 4 is zero or a figured without regard to any gain and line 23, Schedule I is a loss tax-exempt interest (except for amounts Enter on line 22 the smaller of the (after adding back the section 199A from line 7). ATNOLD or the ATNOLD limitation. deduction), enter zero on line 28. If tax-exempt interest is the only Any ATNOL not used may generally Line 29—Adjusted Tax-Exempt tax-exempt income included in the total be carried back 2 years or forward up to Interest distributions (line 38), and the DNAMTI 20 years if it arose before your 2018 tax (line 35) is less than or equal to line 38, year. Any ATNOL arising after your To figure the adjusted tax-exempt then enter on line 39 the amount from 2017 tax year may generally be carried interest (including exempt-interest line 29. back 5 years or forward indefinitely. For dividends received as a shareholder in If tax-exempt interest is the only more information, see Pub. 536, Net a mutual fund or other regulated tax-exempt income included in the total Operating Losses (NOLs) for investment company), subtract the total distributions (line 38), and the DNAMTI Individuals, Estates, and Trusts. of any: is more than line 38 (that is, the estate or trust made a distribution that is less

2020 Instructions for Schedule I (Form 1041) -7- Page 8 of 10 Fileid: … /I1041SCHI/2020/A/XML/Cycle03/source 13:22 - 13-Jan-2021

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

than the DNAMTI), then figure the separate limitation category specified at threshold under the adjustment adjustment by multiplying line 29 by a the top of Form 1116. exception. fraction, the numerator of which is the To adjust foreign source qualified total distributions (line 38), and the Note. When applying the separate dividends, multiply the estate's or trust's denominator of which is the DNAMTI limitation categories, use the applicable foreign source qualified dividends in (line 35). Enter the result on line 39. AMT rate instead of the regular tax rate each separate category by 0.5357 if the to determine if any income is If line 38 includes tax-exempt income foreign source qualified dividends are “high-taxed.” other than tax-exempt interest (except taxed at a rate of 15%. Include the for amounts from line 7), figure line 39 Step 2. If you (on behalf of the estate or results on line 1a of the AMT by subtracting the total expenses trust) previously made or are making the Form 1116. allocable to tax-exempt income that are Simplified limitation election (as If they are taxed at a rate of 20%, allowable for AMT purposes from discussed later), skip Part I and enter on multiply your foreign source qualified tax-exempt income included on line 38. the AMT Form 1116, line 17, the same dividends in each separate category by Expenses that are directly allocable amount you entered on that line for the 0.7143. Include the results on line 1a of to tax-exempt income are allocated only regular tax. If you didn't complete Form the AMT Form 1116. 1116 for the regular tax and you to tax-exempt income. A reasonable You adjust the estate's or trust's previously made or are making the proportion of expenses indirectly foreign source qualified dividends taxed simplified limitation election (on behalf allocable to both tax-exempt income at the 0% rate by not including them on of the estate or trust), complete Part I and other income must be allocated to line 1a of Form 1116. Amounts taxed at and lines 15 through 17 of the AMT each class of income. the 0% rate are on line 8 of the Qualified Form 1116 using regular tax amounts. Line 42—Income Distribution Dividends Tax Worksheet in the If the election doesn't apply, Instructions for Form 1041, line 30 of Deduction on a Minimum Tax complete Part I, using only income and Schedule D (Form 1041), or line 19 of Basis deductions allowed for the AMT that are the Schedule D Tax Worksheet in the Allocate the income distribution attributable to sources outside the Instructions for Schedule D (Form deduction figured on a minimum tax United States. If the estate or trust has 1041). basis among the beneficiaries in the any foreign source qualified dividends or foreign source capital gains or losses, Don’t adjust the amount of any same manner as income was allocated foreign source qualified for regular tax purposes. You need the use the instructions under Step 3 to ! determine whether you must make CAUTION dividends you elected to include allocated income distribution deduction on line 4g of the AMT Form 4952. figured on a minimum tax basis to figure adjustments to those amounts before the beneficiary's adjustment for you include the amounts on line 1a or line 5 of the AMT Form 1116. Foreign capital gains or losses. If minimum tax purposes, as explained any capital gain or loss from U.S. or under Box 12–Alternative minimum tax Step 3. Follow the instructions below, if foreign sources is different for the AMT, (AMT) items in the Schedule K-1 applicable, to determine the amount of use the refigured amounts to complete instruction section of the Instructions for foreign source qualified dividends and this step. Form 1041 and Schedules A, B, G, J, foreign source capital gains and losses To figure the adjustment for the and K-1. to include on line 1a and line 5 of the estate's or trust's foreign source capital AMT Form 1116. Part III—Alternative gains or losses, you must first determine Foreign qualified dividends. You whether you can use Worksheet A or Minimum Tax Computation must adjust the estate's or trust's foreign Worksheet B in the Instructions for Form Line 51—Alternative Minimum source qualified dividends before you 1116. Otherwise, you must use the include those amounts on line 1a of the instructions for Capital Gains and Foreign Tax Credit AMT Form 1116 if: Losses in Pub. 514, Foreign Tax Credit To see if you need to figure the • Line 60 of Schedule I (Form 1041) is for Individuals, to figure the adjustments TIP estate's or trust's AMT foreign greater than zero, you must make to the estate's or trust's tax credit, fill in line 53 of • Line 81 of Schedule I (Form 1041) is foreign source capital gains and losses. Schedule I as instructed. If the amount smaller than line 82, and Use Worksheet A if the estate or trust on line 53 is greater than or equal to the • The exception for foreign qualified has foreign source capital gains or amount on line 50, the estate or trust dividends below doesn't apply. losses in no more than two separate doesn't owe the AMT. Enter zero on But, you don’t need to make any categories, and any of the following line 54 and see Who Must Complete adjustments if: apply. earlier to find out if you must file • The estate or trust qualifies for the • You weren't required to make Schedule I with Form 1041. However, adjustment exception under Qualified adjustments to the estate's or trust's even if the estate or trust doesn't owe Dividends Tax Worksheet (Estates and foreign source qualified dividends under AMT, you may need to complete line 51 Trusts) or Schedule D Filers in the the rules described earlier (or if the to see if you have an AMT foreign tax Instructions for Form 1116 and estate or trust had foreign source credit carryback or carryforward to other • Line 60 of Schedule I (Form 1041) qualified dividends, you wouldn’t have tax years. isn't more than $197,900. been required to make those adjustments). To figure the AMT foreign tax credit, Note. Use the estate's or trust's capital Schedule D (Form 1041), line 18a, follow the steps discussed below. • gains and losses as refigured for the column (2) or line 19, column (2), as Step 1. Complete and attach a AMT to determine whether your total refigured for the AMT if necessary, is separate AMT Form 1116, with the amounts are less than the $20,000 zero or a loss. notation at the top “Alt Min Tax” for each

-8- 2020 Instructions for Schedule I (Form 1041) Page 9 of 10 Fileid: … /I1041SCHI/2020/A/XML/Cycle03/source 13:22 - 13-Jan-2021

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

• On the AMT Schedule D Tax instead of the number used for regular regular tax) and enter the result on line 7 Worksheet for Form 1041, (a) line 17a is tax. of the worksheet. zero, (b) line 9 is zero, or (c) line 42 is Step 4. Complete Part II and lines 9 7. Enter the amount from Schedule I equal to or greater than line 43. through 14 of the AMT Form 1116. Use (Form 1041), line 73 on line 8 of the On the AMT Part V of Schedule D • the estate's or trust's AMT foreign tax worksheet. (Form 1041), a) line 22 of that AMT Part credit carryover, if any, on line 10. V minus the amount on Form 4952, 8. Multiply line 8 of the worksheet by line 4e, that you elected to include on Step 5. If the simplified limitation 0.4643 (instead of the number used for Form 4952, line 4g, is zero or less, b) election doesn't apply, complete lines regular tax). Enter the result on line 9 of line 27 of that AMT Part V of Schedule D 15 through 17 of the AMT Form 1116. the worksheet. 9. Enter the amount from (Form 1041) is zero, or c) line 43 of that Step 6. If you didn't complete Part IV of AMT Part V is equal to or greater than Schedule I, line 66, on line 10 of the Schedule I (Form 1041), enter the worksheet. line 44. amount from Schedule I (Form 1041), Use Worksheet B if you: line 27 on line 18 of the AMT Form 1116 10. Complete lines 11 and 12 of the • Can’t use Worksheet A, and go to Step 7 later. worksheet as instructed on the worksheet. • Have foreign source capital gains and If you completed Part IV of losses in no more than two separate Schedule I (Form 1041), complete an categories, Step 7. Enter the amount from AMT Worksheet for Line 18 in the Schedule I (Form 1041), line 50 on the • Didn’t have any item of unrecaptured Instructions for Form 1116 to figure the section 1250 gain or any item of 28% AMT Form 1116, line 20. Complete lines amount to enter on Form 1116, line 18, 19 through 24 of the AMT Form 1116. rate gain or loss for either regular tax or if: AMT, and • Line 60 of Schedule I (Form 1041) is Step 8. Complete Part IV of the first • Didn’t have any capital gains taxed at greater than zero, and AMT Form 1116 only. a rate of 0% or 20%. • Line 81 of Schedule I (Form 1041) is Enter on line 51 of Schedule I the Instructions for Worksheets A and smaller than line 82. amount from line 35 of the first AMT B. When you complete Worksheet A or But you don’t need to complete the Form 1116. B, use foreign source capital gains and Worksheet for Line 18 if: Attach to the estate's or trust's return losses as refigured for the AMT, if • The estate or trust qualifies for the all AMT Forms 1116 you used to figure necessary, and don’t use any foreign adjustment exception discussed in the your AMT foreign tax credit. source capital gains that you elected to Instructions for Form 1116 and AMT foreign tax credit carryback include on line 4g of the AMT Form Line 60 of Schedule I (Form 1041) • and carryforward. If the AMT foreign 4952. If you must complete a isn't more than $197,900. tax credit is limited, any unused amount Schedule D (Form 1041) for the AMT, Note. Use the estate's and trust's can be carried back or forward under use line 19 of that AMT Schedule D capital gains and losses as refigured for section 904(c). The election to forego (Form 1041) to complete line 3 of the AMT to determine if its total amounts the carryback period for regular tax Worksheet A or line 4 of the Line 2 are less than the $20,000 threshold purposes also applies for the AMT. Worksheet for Worksheet B. Use under the adjustment exception. 0.5357 instead of the number used for If you don’t have to complete an AMT Simplified limitation election. The regular tax to complete lines 11, 13, and Worksheet for Line 18, enter the amount estate or trust may elect to use a 15 of Worksheet B and to complete from line 27 of Schedule I on line 18 of simplified section 904 limitation to figure lines 8, 11, and 17 of the Line 15 the AMT Form 1116. its AMT foreign tax credit. To do so, use Worksheet for Worksheet B. the estate's or trust's regular tax income If the estate or trust doesn't qualify to Instructions for completing an for Form 1116, Part I, instead of use Worksheet A or Worksheet B, use AMT Worksheet for Line 18. To refiguring the estate's or trust's foreign the instructions for Capital Gains and complete an AMT Worksheet for source income for the AMT, as Losses in Pub. 514 to determine the Line 18 in the Instructions for Form described in Step 2 in the instructions adjustments you make. When using the 1116, follow these instructions. for line 51, earlier. The estate or trust instructions in Pub. 514 to determine if 1. Enter the amount from Schedule I must make the election for the first tax you must adjust foreign source capital (Form 1041), line 27 on line 1 of the year after 1997 for which it claims an gains and losses, make the following worksheet. AMT foreign tax credit. If it doesn't make substitutions. 2. Skip lines 2 and 3 of the the election for that year, it may not • When the amount of any AMT gain is worksheet. make it for a later year. Once made, the in the 15% rate group, multiply it by election applies to all later tax years and 3. Enter the amount from Schedule I 0.5357 instead of the number used for may be revoked only with IRS consent. (Form 1041), line 79 on line 4 of the regular tax. worksheet. Line 53—Tax • When the amount of any AMT gain is in the 20% rate group, multiply it by 4. Multiply line 4 of the worksheet by ESBTs. Enter the tax shown on line 14a 0.7143 instead of the number used for 0.1071 (instead of the number used for of the ESBT Tax Worksheet (minus any regular tax. regular tax) and enter the results on foreign tax credit from line 15a of the • When the amount of any AMT gain is line 5 of the worksheet. ESBT worksheet). in the 25% rate group, multiply it by 5. Enter the amount from Schedule I Line 54—Alternative Minimum 0.8929 instead of the number used for (Form 1041), line 76 on line 6 of the Tax regular tax. worksheet. • When the amount of any AMT gain is ESBTs. Enter the amount shown on 6. Multiply line 6 of the worksheet by line 14b of the ESBT Tax Worksheet. in the 28% rate group, multiply it by 1.0 0.2857 (instead of the number used for

2020 Instructions for Schedule I (Form 1041) -9- Page 10 of 10 Fileid: … /I1041SCHI/2020/A/XML/Cycle03/source 13:22 - 13-Jan-2021

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

Part IV—Line 50 or trust is a beneficiary of another estate Don’t decrease the estate's or Computation Using or trust, later. ! trust's section 1202 exclusion CAUTION by the amount, if any, included Maximum Capital Gains If 1 above applies, complete an AMT on line 8 of Schedule I (Form 1041) . Rates Form 8949. Next, if 1 or 3 applies, complete Parts I through IV of an AMT If the estate or trust is a beneficiary Lines 56, 57, and 58 Schedule D (Form 1041) by refiguring of another estate or trust. If the the amounts of your gains and losses If you used Schedule D (Form 1041), estate or trust received a Schedule K-1 for the AMT. Then, if 1, 2, or 3 applies, the Schedule D Tax Worksheet in the (Form 1041) from another estate or trust complete the following lines of the Instructions for Schedule D (Form that shows an amount in box 12 with applicable schedule or worksheet: 1041), or the Qualified Dividends Tax code B, C, D, E, or F, follow the Lines 22 through 26 of an AMT Worksheet in the Instructions for Form • instructions in the table below. Schedule D (Form 1041), 1041, you generally may enter the • Lines 2 through 13 of an AMT IF the code in box 12 is... THEN include that amounts as instructed on Schedule I, amount in the total on... Schedule D Tax Worksheet in the lines 56, 57, and 58. But don’t use those Instructions for Schedule D (Form B line 2 of an AMT Qualified amounts if any of the following apply. Dividends Tax Worksheet 1041), or in the Instructions for Form 1. The gain or loss from any • Lines 2 through 4 of a Qualified 1041; line 23 of an AMT transaction reported on Form 8949 or Dividends Tax Worksheet in the Schedule D (Form 1041); Schedule D (Form 1041) is different for Instructions for Form 1041. or line 2 of an AMT the AMT (for example, because the Schedule D Tax If you were required to complete an Worksheet in the AMT basis was different due to AMT Form 4952, use it to figure the Instructions for depreciation adjustments or an amount to enter on line 25 of the AMT Schedule D (Form 1041), incentive stock option adjustment or the Schedule D (Form 1041), lines 3 and 4 whichever applies. AMT capital loss carryover from 2019 of the AMT Schedule D Tax Worksheet C line 5, column (h), of an was different). in the Instructions for Schedule D (Form AMT Schedule D (Form 1041). 2. You didn't complete Part V of 1041), and line 3 of the Qualified Schedule D (Form 1041), the Dividends Tax Worksheet. Use amounts D line 12, column (h), of an AMT Schedule D (Form Schedule D Tax Worksheet in the from the AMT Schedule D (Form 1041), 1041). Instructions for Schedule D (Form AMT Schedule D Tax Worksheet in the E line 11 of an AMT 1041), or the Qualified Dividends Tax Instructions for Schedule D (Form 1041) Unrecaptured Section Worksheet in the Instructions for Form or Qualified Dividends Tax Worksheet in 1250 Gain Worksheet in 1041 because Form 1041, line 23 or the Instructions for Form 1041 to the Instructions for line 13 of the EBST Tax Worksheet, was complete Schedule I (Form 1041), lines Schedule D (Form 1041). zero or less. 56, 57, and 58. Keep the AMT Form F line 4 of an AMT 28% Rate 8949, AMT Schedule D (Form 1041) Gain Worksheet in the 3. The estate or trust received a Instructions for Schedule K-1 (Form 1041) that shows and applicable AMT worksheet for your Schedule D (Form 1041). an amount in box 12 with code B, C, D, records, but don’t attach any of them to E, or F. If this applies, see If the estate Form 1041.

-10- 2020 Instructions for Schedule I (Form 1041)