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2015

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

Note. If you complete Parts I and II of a 2014 Form 1041,

otherwise noted.

Schedule I, as a worksheet to figure the amount to enter on 2015

Form 8801, line 4, don't attach that worksheet Schedule I to

Future Developments

your tax return. Instead, keep it for your records.

For the latest information about developments related to Form

Line 2

8801 and its instructions, such as legislation enacted after they

were published, go to

Enter on this line the adjustments and preferences treated as

exclusion items (except the standard deduction). Exclusion

items are only the following AMT adjustments and preferences:

General Instructions

itemized deductions (including any investment interest expense

reported on Schedule E), certain tax-exempt interest, depletion,

Purpose of Form

the section 1202 exclusion, and any other adjustments related to

Use Form 8801 if you are an individual, estate, or trust to figure

exclusion items. Don't include the standard deduction. It has

the minimum tax credit, if any, for alternative minimum tax (AMT)

already been included on line 1. Combine lines 2 through 5, 7

you incurred in prior tax years and to figure any credit

through 9, 12, and 13 of your 2014 Form 6251. Don't include any

carryforward to 2016.

amount from line 15 of the 2014 Form 6251. Instead, include the

exclusion item amount from the Schedule(s) K-1 (Form 1041)

Who Should File

you received for 2014. That amount is shown in box 12 with

code J. If you included on line 27 of the 2014 Form 6251 any

Complete Form 8801 if you are an individual, estate, or trust that

adjustments related to exclusion items, also include those

for 2014 had:

adjustments in the amount you enter on line 2. Enter the total on

An AMT liability and adjustments or preferences other than

line 2.

exclusion items,

A credit carryforward to 2015 (on 2014 Form 8801, line 26), or

Exclusion items on other lines. If you included any exclusion

An unallowed qualified electric vehicle credit (see the

item on a line not listed above, include that item in the amount

instructions for line 20).

you enter on line 2. For example, if depletion was included on

Form 6251 as an adjustment on line 19 (passive activities)

File Form 8801 only if line 21 is more than zero.

instead of on line 9 (depletion), include it as an exclusion item in

the amount you enter on line 2.

Specific Instructions

Line 3

The AMT is caused by two types of adjustments and

Your MTCNOLD is the total of the minimum tax credit net

preferences—deferral items and exclusion items. Deferral items

operating loss (MTCNOL) carryovers and carrybacks to 2014.

(for example, depreciation) generally don't cause a permanent

Your MTCNOL is figured as follows.

difference in taxable income over time. Exclusion items (for

example, the standard deduction), on the other hand, do cause

Your MTCNOL is the excess of the deductions (excluding the

a permanent difference. The minimum tax credit is allowed only

MTCNOLD) over the income used to figure alternative minimum

for the AMT caused by deferral items.

taxable income (AMTI) taking into account only exclusion items.

Figure this excess with the modifications in section 172(d) taking

Part I—Net Minimum Tax on

into account only exclusion items. (That is, the section 172(d)

Exclusion Items

modifications must be figured separately for the MTCNOL.)

For example, the limitation of nonbusiness deductions to the

Line 1—Estates and Trusts

amount of nonbusiness income must be figured separately for

the MTCNOL using only nonbusiness income and deductions

These line 1 instructions are for estates and trusts only. Skip

but taking into account only exclusion items. However, ignore

lines 1 through 3 of Form 8801. To figure the amount to enter on

the disallowance of the deduction for personal exemptions under

line 4 of Form 8801, complete Parts I and II of another 2014

section 172(d)(3) because it has already been taken into

Form 1041, Schedule I, as a worksheet. After completing lines 1

account to figure AMTI attributable only to exclusion items.

and 7 of Schedule I, complete the rest of Part I of Schedule I by

taking into account only exclusion items (the amounts included

To determine the amount of MTCNOL that may be carried to

on lines 2 through 6, 8, and 9, and any other adjustments related

tax years other than 2014, apply sections 172(b)(2) and 172(d)

to exclusion items included on line 23 of Schedule I). On line 24

with appropriate modifications to take into account only

of Schedule I, use the minimum tax credit net operating loss

exclusion items.

deduction (MTCNOLD). However, don't limit the MTCNOLD to

90% of the total of lines 1 through 23 of Schedule I. (See the

Line 4

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 2014 and

without taking into account any basis adjustments arising from

line 4 is more than $242,450, 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 $406,650 or more, include an

less, enter -0- on Form 8801, line 4. Otherwise, enter on Form

additional $41,050 on line 4. Otherwise, include 25% of the

8801, line 4, the amount from Schedule I, line 29, adjusted for

excess of the amount on line 4 over $242,450. For example, if

exclusion items that were allocated to the beneficiary.

the amount on line 4 is $262,450, enter $267,450 instead—the

Jun 16, 2015

Cat. No. 10600C

Instructions For Form 8801 - Credit For Prior Year Minimum Tax-Individuals, Estates-Trusts - 2015

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