2023

Instructions for Schedule I 

(Form 1041)

Alternative Minimum Tax—Estates and Trusts

Department of the Treasury

Internal Revenue Service

Section references are to the Internal Revenue Code unless 

otherwise noted.

Future Developments

For the latest information about developments related to 

Schedule I and its instructions, such as legislation enacted 

after they were published, go to IRS.gov/Form1041.

What's New

AMT tax brackets. The threshold for the 28% AMT tax 

bracket increased to amounts over $220,700.

AMT exemption amount and phaseout. The AMT 

exemption amount increased to $28,400. The exemption 

amount begins to be phased out at amounts over $94,600 

and is completely phased out at $208,200.

Capital gains and qualified dividends. For tax year 2023, 

the 20% maximum capital gains rate applies to estates and 

trusts with income above $14,650. The 0% and 15% rates 

continue to apply to certain threshold amounts. The 0% rate 

applies to amounts up to $3,000. The 15% rate applies to 

amounts over $3,000 and up to $14,650.

General Instructions

Purpose of Schedule

Use Schedule I (Form 1041) to figure:

• The estate's or trust's alternative minimum taxable 

income,

• The income distribution deduction on a minimum tax 

basis, and

• The estate's or trust's alternative minimum tax (AMT).

Electing Small Business Trusts (ESBTs). An ESBT must 

figure the AMT for the S and non-S portions of the trust on 

separate Schedules I (Form 1041). The Schedule I for each 

portion includes only the income, deductions, and credits 

attributable to that portion.

Who Must Complete Schedule I (Form 

1041)

• Complete Parts I and II if the estate or trust is required to 

complete Form 1041, Schedule B, Income Distribution 

Deduction.

• Complete Schedule I if the estate's or trust's share of 

alternative minimum taxable income (Part I, line 27) 

exceeds $28,400.

• Complete Schedule I if the estate or trust claims any 

general business credit and line 6 of Part I or line 3 of 

Part III of Form 3800, General Business Credit, is more 

than zero.

• ESBTs. Complete Schedule I if the alternative minimum 

taxable income (Part I, line 27) of the S portion of the 

trust is more than zero or the S portion of the trust claims 

any general business credit and line 6 of Part I or line 3 of 

Part III of the Form 3800 is more than zero.

Recordkeeping

Schedule I (Form 1041) contains adjustments and tax 

preference items that are treated differently for regular tax 

and AMT purposes. If you, as fiduciary for the estate or trust, 

completed a form to figure an item for regular tax purposes, 

you may have to complete it a second time for AMT 

purposes. Generally, the difference between the amounts on 

the two forms is the AMT adjustment or tax preference item 

to enter on Schedule I. Except for Form 1116, Foreign Tax 

Credit (Individual, Estate, or Trust), any additional form 

completed for AMT purposes doesn't have to be filed with 

Form 1041.

For regular tax purposes, some deductions and credits 

may result in carrybacks or carryforwards to other tax years. 

Examples are investment interest expense, a net operating 

loss deduction (NOLD), a capital loss, and the foreign tax 

credit. Because these items may be refigured for the AMT, 

the carryback or carryforward amount may be different for 

regular and AMT purposes. Therefore, you should keep 

records of these different carryforward and carryback 

amounts for the AMT and regular tax. The AMT carryforward 

will be important in completing Schedule I for 2024.

Credit for Prior Year Minimum Tax

Estates and trusts that paid AMT in 2022, or had a minimum 

tax credit carryforward from the 2022 Form 8801, Credit for 

Prior Year Minimum Tax—Individuals, Estates, and Trusts, 

may be eligible for a minimum tax credit in 2023. See Form 

8801.

Partners and Shareholders

An estate or trust that is a partner in a partnership or a 

shareholder in an S corporation must take into account its 

share of items of income and deductions that enter into the 

computation of its adjustments and tax preference items.

Allocation of Deductions to Beneficiaries

The distributable net alternative minimum taxable income 

(DNAMTI) of the estate or trust doesn't include amounts of 

depreciation, depletion, and amortization that are allocated to 

the beneficiaries, just as the distributable net income of the 

estate or trust doesn't include these items for regular tax 

purposes.

Report separately in box 12 of Schedule K-1 (Form 1041), 

Beneficiary's Share of Income, Deductions, Credits, etc., any 

adjustments or tax preference items attributable to 

accelerated depreciation (code G), depletion (code H), and 

amortization (code I) that were allocated to the beneficiaries.

Nov 4, 2023 Cat. No. 51559W
Optional Write-Off for Certain Expenditures

There is no AMT adjustment for the following items if the 

estate or trust elects to deduct them ratably over the period of 

time shown for the regular tax.

• Circulation expenditures—3 years (section 173).

• Research and experimental expenditures—10 years 

(section 174(a)).

• Intangible drilling costs—60 months (section 263(c)).

• Mining exploration and development costs—10 years 

(sections 616(a) and 617(a)).

The election must be made in the year the expenditure 

was made and may be revoked only with IRS consent. See 

section 59(e) and Regulations section 1.59-1 for more 

details.

Specific Instructions

ESBTs. Use a separate Schedule I (Form 1041) to 

figure the AMT for the S portion of the trust. Add the 

notation “ESBT” to the top of the Schedule I and 

attach it to the tax computation attachment for Form 1041. 

See the ESBT Tax Worksheet in the Instructions for Form 

1041.

Where these instructions refer to completing other forms 

and worksheets, you must complete separate forms and 

worksheets for the S and non-S portions of the trust. Where 

necessary, add an “ESBT” notation at the top of the form or 

worksheet to show it relates to the computation for the S 

portion of the trust.

Part I—Estate's or Trust's Share of 

Alternative Minimum Taxable Income

Line 1—Adjusted Total Income or (Loss)

Adjusted total income or (loss) (from Form 1041, line 17, or 

ESBT Tax Worksheet, line 13). See the ESBT Tax Worksheet 

in the Instructions for Form 1041.

Note. The section 199A deduction isn’t included in the 

amount reported on line 1. To figure your adjusted alternative 

minimum taxable income, any section 199A deduction taken 

on Form 1041, line 20, must be included as a negative 

amount on Line 21—Other Adjustments, later.

Line 2—Interest

In determining the alternative minimum taxable income, 

qualified residence interest (other than qualified housing 

interest defined in section 56(e)) isn't allowed.

If you completed Form 4952, Investment Interest Expense 

Deduction, for regular tax purposes, you may have an 

adjustment on this line. Refigure your investment interest 

expense on a separate AMT Form 4952 as follows.

Step 1. On line 1 of the AMT Form 4952, follow the 

instructions for that line, but also include the following 

amounts.

• Any qualified residence interest (other than qualified 

housing interest) that was paid or accrued on a loan or 

part of a loan that is allocable to property held for 

investment as defined in section 163(d)(5) (for example, 

interest on a home equity loan whose proceeds were 

invested in stocks or bonds).

• Any interest that would have been deductible if interest 

on specified private activity bonds had been included in 

CAUTION

!

income. See the instructions for line 7 for the definition of 

specified private activity bonds.

Step 2. On line 2, enter the AMT disallowed investment 

interest expense from 2022.

Step 3. When completing Part II of the AMT Form 4952, 

refigure gross income from property held for investment, any 

net gain from the disposition of property held for investment, 

net capital gain from the disposition of property held for 

investment, and any investment expenses, taking into 

account all AMT adjustments and tax preference items that 

apply. Include any interest income and investment expenses 

from private activity bonds issued after August 7, 1986.

When completing line 4g of the AMT Form 4952, enter the 

smaller of:

• The amount from line 4g of the regular tax Form 4952, or

• The total of lines 4b and 4e of the AMT Form 4952.

Step 4. Complete Part III.

Enter on Schedule I (Form 1041), line 2, the difference 

between line 8 of the AMT Form 4952 and line 8 of the 

regular tax Form 4952. If the AMT deduction is greater, enter 

the difference as a negative amount.

Line 3—Taxes

Enter any state or local real property taxes; state or local 

personal property taxes; state and local general sales taxes; 

and any state, local, or foreign income taxes that were 

included on Form 1041, page 1, line 11.

Line 4—Refund of Taxes

Enter any refunds received in 2023 of taxes described for 

line 3 above and included in income. Also, include foreign 

real property taxes that were deducted in years prior to 2023, 

but refunded in 2023 and included in income on Form 1041.

Line 5—Depletion

Refigure the depletion deduction for AMT purposes by using 

only the income and deductions allowed for the AMT when 

refiguring the limit based on taxable income from the property 

under section 613(a) and the limit based on taxable income, 

with certain adjustments, under section 613A(d)(1). Also, the 

depletion deduction for mines, wells, and other natural 

deposits under section 611 is limited to the property's 

adjusted basis at the end of the year, as refigured for the 

AMT, unless the estate or trust is an independent producer or 

royalty owner claiming percentage depletion for oil and gas 

wells. Figure this limit separately for each property. When 

refiguring the property's adjusted basis, take into account any 

AMT adjustments made this year or in previous years that 

affect basis (other than the current year's depletion).

Enter on line 5 the difference between the regular tax and 

AMT deduction. If the AMT deduction is more than the 

regular tax deduction, enter the difference as a negative 

amount.

Line 6—Net Operating Loss Deduction

Enter any NOLD from line 15b of page 1 of the Form 1041 as 

a positive amount.

Line 7—Interest From Specified Private Activity 

Bonds Exempt From the Regular Tax

Enter the interest earned from specified private activity bonds 

reduced (but not below zero) by any deduction that would 

have been allowable if the interest were includible in gross 

-2- 2023 Instructions for Schedule I (Form 1041)
income for regular tax purposes. Each payer of this type of 

interest should send a Form 1099-INT, Interest Income, to the 

estate or trust showing the amount of this interest in box 9. 

Generally, specified private activity bonds are any qualified 

bonds (as defined in section 141) issued after August 7, 

1986, and before 2009 or after 2010, the interest on which 

isn't includible in gross income for the regular tax. See 

section 57(a)(5) for more information.

Don’t include interest on qualified New York Liberty Bonds, 

qualified Gulf Opportunity Zone bonds, qualified Midwestern 

disaster area bonds, or qualified Hurricane Ike disaster area 

bonds.

Exempt-interest dividends paid by a regulated investment 

company are treated as interest from specified private activity 

bonds to the extent the dividends are attributable to interest 

on the bonds received by the company, minus an allocable 

share of the expenses paid or incurred by the company in 

earning the interest. This amount should also be reported to 

the estate or trust on Form 1099-DIV in box 13.

Line 8—Qualified Small Business Stock

If the estate or trust claimed the exclusion under section 1202 

for gain on qualified small business stock acquired before 

September 28, 2010, and held more than 5 years, multiply 

the excluded gain (as shown on Form 8949 in column (g)) by 

7% (0.07). Enter the result on line 8 as a positive amount.

Line 9—Exercise of Incentive Stock Options

For regular tax purposes, no income is recognized when an 

incentive stock option (as defined in section 422(b)) is 

exercised. However, this rule doesn't apply for AMT 

purposes. Instead, the estate or trust must generally include 

on line 9 the excess, if any, of:

1. The fair market value (FMV) of the stock acquired 

through exercise of the option (determined without 

regard to any lapse restriction) when its rights in the 

acquired stock first become transferable or when these 

rights are no longer subject to a substantial risk of 

forfeiture, over

2. The amount paid for the stock, including any amount 

paid for the option used to acquire the stock.

Even if the estate's or trust's rights in the stock aren't 

transferable and are subject to a substantial risk of 

forfeiture, you may elect to include in AMT income 

the excess of the stock's FMV (determined without regard to 

any lapse restriction) over the exercise price upon the transfer 

to the estate or trust of the stock acquired through exercise of 

the option. See section 83(b) for more details. The election 

must be made no later than 30 days after the date of transfer.

If the estate or trust acquired stock by exercising an option 

and it disposed of that stock in the same year, the tax 

treatment under the regular tax and the AMT is the same, 

and no adjustment is required.

Increase the AMT basis of any stock acquired through the 

exercise of an incentive stock option by the amount of the 

adjustment.

Note. If a Form 3921, Exercise of an Incentive Stock Option 

Under Section 422(b), was received, it may help you figure 

the adjustment.

TIP

Line 10—Other Estates and Trusts

If the estate or trust is the beneficiary of another estate or 

trust, enter the adjustment for minimum tax purposes from 

box 12, code A, Schedule K-1 (Form 1041).

ESBTs. Enter an amount on this line only if the S corporation 

was a beneficiary of an estate or trust, received a 

Schedule K-1 (Form 1041) from the estate or trust with an 

entry in box 12, code A, and the S corporation allocated a 

portion of the box 12, code A, amount to the ESBT. See 

Schedule K-1 (Form 1120-S), box 15, code F.

Line 11—Disposition of Property

Use this line to report any AMT adjustment related to the 

disposition of property resulting from refiguring:

1. Gain or loss from the sale, exchange, or involuntary 

conversion of property reported on Form 4797, Sales of 

Business Property;

2. Casualty gain or loss to business or income-producing 

property reported on Form 4684, Casualties and Thefts;

3. Ordinary income from the disposition of property not 

taken into account in 1 or 2 above or on any other line on 

Schedule I (Form 1041), such as a disqualifying 

disposition of stock acquired in a prior year by exercising 

an incentive stock option; and

4. Capital gain or loss (including any carryover that is 

different for the AMT) reported on Form 8949, Sales and 

Other Dispositions of Capital Assets, or Schedule D 

(Form 1041), Capital Gains and Losses.

The $3,000 capital loss limitation for the regular 

tax applies separately for the AMT.

First, figure any ordinary income adjustment related to 3, 

earlier. Then, refigure Form 4684, Form 4797, Form 8949, 

and Schedule D (Form 1041) for the AMT, if applicable, by 

taking into account any adjustments you made this year or in 

previous years that affect the estate's or trust's basis or 

otherwise result in a different amount for AMT. When you 

refigure your gain or loss on Form 8949 for AMT, the amount 

of gain you elected to defer for regular tax purposes due to an 

investment in a qualified opportunity fund may need to be 

adjusted on your AMT Form 8949. An adjustment may be 

required if the regular tax and AMT adjusted basis of the 

property you sold prior to your investment is different.

If the estate or trust has a capital loss after refiguring 

Schedule D for the AMT, apply the $3,000 capital loss 

limitation separately to the AMT loss. For each of the four 

items listed above, figure the difference between the amount 

included in taxable income for the regular tax and the amount 

included in income for the AMT. Treat the difference as a 

negative amount if (a) both the AMT and regular tax amounts 

are zero or more and the AMT amount is less than the regular 

tax amount, or (b) the AMT amount is a loss, and the regular 

tax amount is a smaller loss, or zero or more.

Enter on line 11 the combined adjustments for the four 

items, earlier.

Line 12—Depreciation on Assets Placed in 

Service After 1986

This section describes when depreciation must be refigured 

for the AMT and how to figure the amount to enter on line 12.

CAUTION

!

2023 Instructions for Schedule I (Form 1041) -3-
Don’t include on this line any depreciation adjustment 

from:

• An activity for which the estate or trust isn't at risk or 

income or loss from a partnership or an S corporation if 

the basis limitations under section 704(d) or 1366(d) 

apply. Take this adjustment into account on line 14;

• A tax shelter farm activity. Take this adjustment into 

account on line 21; or

• A passive activity. Take this adjustment into account on 

line 13.

What depreciation must be refigured for the AMT? 

Generally, you must refigure depreciation for the AMT, 

including depreciation allocable to inventory costs, for:

• Property placed in service after 1998 that is depreciated 

for the regular tax using the 200% declining balance 

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

the modified accelerated cost recovery system 

(MACRS), except for certain qualified property eligible for 

the special depreciation allowance (discussed later));

• Section 1250 property placed in service after 1998 that 

isn't depreciated for the regular tax using the straight line 

method; and

• Tangible property placed in service after 1986 and before 

1999. If the transitional election was made under section 

203(a)(1)(B) of the Tax Reform Act of 1986, this rule 

applies to property placed in service after July 31, 1986.

What depreciation isn't refigured for the AMT? Don’t 

refigure depreciation for the AMT for the following items.

• Residential rental property placed in service after 1998.

• Nonresidential real property with a class life of 27.5 years 

or more placed in service after 1998 that is depreciated 

for the regular tax using the straight line method.

• Other section 1250 property placed in service after 1998 

that is depreciated for the regular tax using the straight 

line method.

• Property (other than section 1250 property) placed in 

service after 1998 that is depreciated for the regular tax 

using the 150% declining balance method or the straight 

line method.

• Property for which you elected to use the alternative 

depreciation system (ADS) of section 168(g) for the 

regular tax.

• Qualified property that is or was eligible for the special 

depreciation allowance if the depreciable basis of the 

property for the AMT is the same as for the regular tax. 

This applies to any special depreciation allowance, 

including those for disaster assistance property, reuse 

and recycling property, cellulosic biofuel plant property, 

second generation biofuel plant property, New York 

Liberty Zone property, Gulf Opportunity Zone property, 

and Kansas disaster area recovery assistance property. 

The special allowance is deductible for the AMT, and 

there is also no adjustment required for any depreciation 

figured on the remaining basis of the qualified property if 

the depreciable basis of the property for the AMT is the 

same as for the regular tax. Property for which an 

election is in effect to not have the special allowance 

apply isn't qualified property. In addition, if you elect not 

to have any special depreciation allowance apply, the 

property may be subject to an AMT adjustment for 

depreciation if it was placed in service before 2016. It is 

not subject to an AMT adjustment for depreciation if it 

was placed in service after 2015.

• Motion picture films, videotapes, or sound recordings.

• Property depreciated under the unit-of-production 

method or any other method not expressed in a term of 

years.

• Qualified Indian reservation property.

• A natural gas gathering line placed in service after April 

11, 2005.

How is depreciation refigured for the AMT? See 

methods below.

Property placed in service before 1999. Refigure 

depreciation for the AMT using ADS with the same 

convention used for the regular tax. See the table below for 

the method and recovery period to use.

Property Placed in Service Before 1999

IF the property is... THEN use the...

section 1250 property straight line method over 40 years.

tangible property (other than 

section 1250 property) depreciated 

using the straight line method for 

the regular tax

straight line method over the 

property's AMT class life.

any other tangible property 150% declining balance method, 

switching to the straight line method 

the first tax year it gives a larger 

deduction, over the property's AMT 

class life.

Property placed in service after 1998. Use the same 

convention and recovery period used for the regular tax. For 

property other than section 1250 property, use the 150% 

declining balance method, switching to the straight line 

method the first tax year it gives a larger deduction. For 

section 1250 property, use the straight line method.

How is the AMT class life determined? The class life 

used for the AMT isn't necessarily the same as the recovery 

period used for the regular tax. The class lives for the AMT 

are listed in Rev. Proc. 87-56, 1987-2 C.B. 674, and in Pub. 

946, How To Depreciate Property. Use 12 years for any 

tangible personal property not assigned a class life.

See Pub. 946 for optional tables that can be used to 

figure AMT depreciation. Rev. Proc. 89-15, 1989-1 

C.B. 816, has special rules for short tax years and for 

property disposed of before the end of the recovery period.

How is the line 12 adjustment figured? Subtract the AMT 

deduction for depreciation from the regular tax deduction and 

enter the result. If the AMT deduction is more than the regular 

tax deduction, enter the difference as a negative amount.

In addition to the AMT adjustment to your deduction for 

depreciation, you must also adjust the amount of 

depreciation that was capitalized, if any, to account for the 

difference between the rules for the regular tax and the AMT. 

Include on this line the current year adjustment to taxable 

income, if any, resulting from the difference.

Line 13—Passive Activities

Don’t enter again elsewhere on this schedule any 

AMT adjustment or tax preference item included on 

this line.

For AMT purposes, the rules described in section 469 

apply, except that in applying the limitations, minimum tax 

rules apply.

TIP

CAUTION

!

-4- 2023 Instructions for Schedule I (Form 1041)
Refigure passive activity gains and losses on an AMT 

basis. Refigure a passive activity gain or loss by taking into 

account all AMT adjustments or tax preference items that 

pertain to that activity.

You may complete a second Form 8582, Passive Activity 

Loss Limitations, to determine the passive activity losses 

allowed for AMT purposes, but don't send this AMT Form 

8582 to the IRS.

Enter the difference between the loss reported for regular 

tax purposes and the AMT loss, if any.

The amount of any passive activity loss that isn't 

deductible (and is therefore carried forward) for AMT 

purposes is likely to differ from the amount (if any) 

that is carried forward for regular tax purposes. Therefore, it is 

essential that you retain adequate records for both AMT and 

regular tax purposes.

Publicly traded partnerships (PTPs). If the estate or trust 

had a loss from a PTP, refigure the loss using any AMT 

adjustments, tax preference items, and any AMT prior year 

unallowed loss.

Line 14—Loss Limitations

If the loss is from a passive activity, use line 13 

instead. If the loss is from a tax shelter farm activity 

(that isn't passive), use line 21.

Refigure your allowable losses for AMT purposes from 

activities for which you aren't at risk and basis limitations 

applicable to interests in partnerships and stock in S 

corporations by taking into account your AMT adjustments 

and tax preference items. See sections 59(h), 465, 704(d), 

and 1366(d).

Enter the difference between the loss reported for regular 

tax purposes and the AMT loss. If the AMT loss is more than 

the loss reported for regular tax purposes, enter the 

adjustment as a negative amount.

Line 15—Circulation Costs

Don’t make this adjustment for expenditures for 

which you elected the optional 3-year write-off period 

for regular tax purposes.

Circulation expenditures deducted under section 173(a) 

for regular tax purposes must be amortized for AMT 

purposes over 3 years beginning with the year the 

expenditures were paid or incurred.

Enter the difference between the regular tax and AMT 

deduction. If the AMT deduction is greater, enter the 

difference as a negative amount.

If the estate or trust had a loss on property for which 

circulation expenditures haven't been fully amortized for the 

AMT, the AMT deduction is the smaller of (a) the amount of 

the loss allowable for the expenditures had they remained 

capitalized, or (b) the remaining expenditures to be amortized 

for the AMT.

Line 16—Long-Term Contracts

For AMT purposes, the percentage of completion method of 

accounting described in section 460(b) must generally be 

used. However, this rule doesn't apply to any home 

construction contract (as defined in section 460(e)(6)).

TIP

CAUTION

!

CAUTION

!

Note. Contracts described in section 460(e)(1)(B) are 

subject to the simplified method of cost allocation of section 

460(b)(4).

Enter the difference between the AMT and regular tax 

income. If the AMT income is smaller, enter the difference as 

a negative amount.

Line 17—Mining Costs

Don’t make this adjustment for costs for which you 

elected the optional 10-year write-off period under 

section 59(e) for regular tax purposes.

Expenditures for the development or exploration of a mine 

or certain other mineral deposits (other than an oil, gas, or 

geothermal well) deducted under sections 616(a) and 617(a) 

for regular tax purposes must be amortized for AMT 

purposes over 10 years beginning with the year the 

expenditures were paid or incurred.

Enter the difference between the amount allowed for AMT 

purposes and the amount allowed for regular tax purposes. If 

the amount allowed for AMT purposes exceeds the amount 

deducted for regular tax purposes, enter the difference as a 

negative amount.

If the estate or trust had a loss on property for which 

mining expenditures haven't been fully amortized for the 

AMT, the AMT deduction is the smaller of (a) the amount of 

the loss allowable for the expenditures had they remained 

capitalized, or (b) the remaining expenditures to be amortized 

for the AMT.

Line 18—Research and Experimental Costs

Don’t make this adjustment for costs paid or incurred 

in connection with an activity in which the estate or 

trust materially participated under the passive activity 

rules or for costs for which you elected the optional 10-year 

write-off for research and experimental expenditures under 

section 59(e) for regular tax purposes.

Research and experimental expenditures deducted under 

section 174(a) for regular tax purposes must generally be 

amortized for AMT purposes over 10 years beginning with 

the year the expenditures were paid or incurred.

Enter the difference between the amount allowed for AMT 

purposes and the amount allowed for regular tax purposes. If 

the amount for AMT purposes exceeds the amount allowed 

for regular tax purposes, enter the difference as a negative 

amount.

If the estate or trust had a loss on property for which 

research and experimental costs haven't been fully amortized 

for the AMT, the AMT deduction is the smaller of (a) the loss 

allowable for the costs had they remained capitalized, or (b) 

the remaining costs to be amortized for the AMT.

Line 19—Income From Certain Installment Sales 

Before January 1, 1987

The installment method doesn't apply for AMT purposes to 

any nondealer disposition of property that occurred after 

August 16, 1986, but before the first day of your tax year that 

began in 1987, if an installment obligation to which the 

proportionate disallowance rule applied arose from the 

disposition. Enter on line 19 the amount of installment sale 

income that was reported for regular tax purposes.

CAUTION

!

CAUTION

!

2023 Instructions for Schedule I (Form 1041) -5-
Line 20—Intangible Drilling Costs (IDCs) 

Preference

Don’t make this adjustment for costs for which you 

elected the optional 60-month write-off under section 

59(e) for regular tax purposes.

IDCs from oil, gas, and geothermal wells are a preference 

to the extent that the excess IDCs exceed 65% of the net 

income from the wells. Figure the preference for all oil and 

gas properties separately from the preference for all 

geothermal properties.

Figure excess IDCs as follows.

1. Determine the amount of the estate's or trust's IDCs 

allowed for the regular tax under section 263(c), but 

don’t include any section 263(c) deduction for 

nonproductive wells, then

2. Subtract the amount that would have been allowed had 

you amortized these IDCs over a 120-month period 

starting with the month the well was placed in 

production.

Cost depletion can be substituted for the amount 

allowed using amortization over 120 months.

Net income. Determine net income by reducing the gross 

income that the estate or trust received or accrued during the 

tax year from all oil, gas, and geothermal wells by the 

deductions allocable to those wells (reduced by the excess 

IDCs). When refiguring net income, use only income and 

deductions allowed for the AMT.

Exception. The preference for IDCs from oil and gas wells 

doesn't apply to taxpayers who are independent producers 

(that is, not integrated oil companies as defined in section 

291(b)(4)). However, this benefit may be limited. First, figure 

the IDC preference as if this exception didn't apply. For 

purposes of this exception, complete and combine lines 1 

through 21, including the IDC preference. If the amount of the 

IDC preference exceeds 40% of the total of lines 1 through 

21, enter the excess on line 20 (the benefit of this exception 

is limited). Otherwise, don’t enter an amount on line 20 (the 

estate's or trust's benefit from this exception isn't limited).

Line 21—Other Adjustments

Enter on line 21 the total of any other adjustments that apply, 

including the following.

• Section 199A deduction. Include as a negative amount 

on line 21 the section 199A deduction shown on Form 

1041, line 20.

ESBTs. Don't include any section 199A 

deduction taken on line 11, Qualified business 

income deduction (S portion), of your ESBT Tax 

Worksheet on line 21 when figuring your adjusted 

alternative minimum taxable income for the S portion of 

your trust. This amount is already included on line 1, 

Adjusted total income or (loss), from line 13 of your ESBT 

Tax Worksheet.

• Depreciation figured using pre-1987 rules. For AMT 

purposes, use the straight line method to figure 

depreciation on real property. Use a recovery period of 

19 years for 19-year real property and 15 years for 

low-income housing. Enter the excess of depreciation 

claimed for regular tax purposes over depreciation 

refigured using the straight line method. Figure this 

CAUTION

!

CAUTION

!

CAUTION

!

amount separately for each property and include on 

line 21 only positive amounts.

For leased personal property other than recovery 

property, enter the amount by which the regular tax 

depreciation using the pre-1987 rules exceeds the 

depreciation allowable using the straight line method. For 

leased 10-year recovery property and leased 15-year 

public utility property, enter the amount by which the 

depreciation deduction determined for regular tax 

purposes is more than the deduction allowable using the 

straight line method with a half-year convention, no 

salvage value, and a recovery period of 15 years (22 

years for 15-year public utility property). Figure this 

amount separately for each property and include on 

line 21 only positive amounts.

• Amortization of pollution control facilities. The 

amortization deduction under section 169 must be 

refigured for the AMT. For facilities placed in service after 

1986 and before 1999, figure the amortization deduction 

for the AMT using the ADS described in section 168(g). 

For facilities placed in service after 1998, figure the AMT 

deduction under MACRS using the straight line method. 

Enter the difference between the regular tax and AMT 

deduction. If the AMT amount is greater, enter the 

difference as a negative amount.

• Tax shelter farm activities. Figure this adjustment only 

if the tax shelter farm activity (as defined in section 58(a)

(2)) isn't a passive activity. If the activity is passive, 

include it with any other passive activities on line 13.

Refigure all gains and losses reported for the regular 

tax from tax shelter farm activities by taking into account 

any AMT adjustments and preferences. Determine tax 

shelter farm activity gain or loss for the AMT using the 

same rules used for the regular tax with the following 

modifications. No refigured loss is allowed, except to the 

extent an estate or trust is insolvent (see section 58(c)

(1)). A refigured loss may not be used in the current tax 

year to offset gains from other tax shelter farm activities. 

Instead, any refigured loss must be suspended and 

carried forward indefinitely until (a) the estate or trust has 

a gain in a subsequent tax year from the same activity, or 

(b) the activity is disposed of.

The AMT amount of any tax shelter farm activity loss 

that isn't deductible and is carried forward is likely to 

differ from the regular tax amount. Keep adequate 

records for both the AMT and regular tax.

Enter the difference between the amount that would 

be reported for the activity on Schedule E (Form 1040), 

Supplemental Income and Loss, or Schedule F (Form 

1040), Profit or Loss From Farming, for the AMT and the 

regular tax amount. If (a) the AMT loss is more than the 

regular tax loss, (b) the AMT gain is less than the regular 

tax gain, or (c) there is an AMT loss and a regular tax 

gain, then enter the adjustment as a negative amount.

Enter any adjustment for amounts reported on Form 

8949, Schedule D (Form 1041), Form 4684, or Form 

4797 for the activity on line 11 instead of line 21.

• Biofuel producer credit and biodiesel and 

renewable diesel fuels credit. If the adjusted total 

income (Form 1041, line 17) includes the amount of the 

biofuel producer credit or biodiesel and renewable diesel 

fuels credit, include that amount as a negative amount on 

line 21.

• Related adjustments. AMT adjustments and tax 

preference items may affect deductions that are based 

-6- 2023 Instructions for Schedule I (Form 1041)
on an income limit other than adjusted gross income 

(AGI) or modified AGI (for example, farm conservation 

expenses). Refigure these deductions using the income 

limit as modified for the AMT. Include the difference 

between the regular tax and AMT deduction on line 21. If 

the AMT deduction is more than the regular tax 

deduction, include the difference as a negative amount.

Don’t make an adjustment on line 21 for an item you 

refigured on another line of Schedule I (for example, 

line 5).

Business interest limitation. Complete an AMT Form 

8990 using amounts adjusted for AMT. Enter the difference 

between the AMT and regular tax allowable interest expense. 

If line 30 of the AMT Form 8990 is more than the amount on 

line 30 of the regular tax Form 8890, enter the difference as a 

negative amount.

Line 22—Alternative Tax Net Operating Loss 

Deduction (ATNOLD)

The ATNOLD is the sum of the alternative tax net operating 

loss (ATNOL) carryovers and carrybacks to the tax year, 

subject to the limitation explained below.

The net operating loss (NOL) under section 172(c) is 

modified for alternative tax purposes by (a) taking into 

account the adjustments made under sections 56 and 58, 

and (b) reducing the NOL by any item of tax preference under 

section 57. For an estate or trust that held a residual interest 

in a real estate mortgage investment conduit (REMIC), figure 

the ATNOLD without regard to any excess inclusion.

If this estate or trust is the beneficiary of another estate or 

trust that terminated in 2023, include any ATNOL carryover 

that was reported in box 11, code F, of Schedule K-1 (Form 

1041).

The estate's or trust's ATNOLD may be limited. To figure 

the ATNOLD limitation, first figure alternative minimum 

taxable income (AMTI) without regard to the ATNOLD. For 

this purpose, figure a tentative amount for line 5 of Schedule I 

(Form 1041) by treating line 22 as if it were zero. Then, figure 

a tentative total by combining lines 1–21 of Schedule I (Form 

1041) using the line 5 tentative amount. The ATNOLD 

limitation is 90% of the result.

However, the 90% limit doesn't apply to an ATNOL that is 

attributable to qualified disaster losses (as defined in section 

172(j)), qualified Gulf Opportunity Zone losses (as defined in 

section 1400N(k)(2)), qualified recovery assistance losses 

(as defined in Pub. 4492-A, Information for Taxpayers 

Affected by the May 4, 2007, Kansas Storms and 

Tornadoes), qualified disaster recovery assistance losses (as 

defined in Pub. 4492-B, Information for Affected Taxpayers in 

the Midwestern Disaster Areas) or a 2008 or 2009 loss that 

you elected to carry back more than 2 years under section 

172(b)(1)(H). If an ATNOL that is carried back or carried 

forward to a tax year is attributable to any of those losses, the 

ATNOLD for the tax year is limited to the sum of:

1. The smaller of:

a. The sum of the ATNOL carrybacks and 

carryforwards to the tax year attributable to NOLs 

other than the losses described in 2a below; or

b. 90% of AMTI for the tax year (figured without regard 

to the ATNOLD), plus

2. The smaller of:

CAUTION

!

a. The sum of the ATNOL carrybacks and 

carryforwards to the tax year attributable to qualified 

disaster losses, qualified Gulf Opportunity Zone 

losses, qualified recovery assistance losses, 

qualified disaster recovery assistance losses, and 

any 2008 or 2009 loss that you elected to carry back 

more than 2 years under section 172(b)(1)(H); or

b. 100% of AMTI for the tax year (figured without regard 

to the ATNOLD) reduced by the amount determined 

under 1 above.

Enter on line 22 the smaller of the ATNOLD or the 

ATNOLD limitation.

Any ATNOL not used may generally be carried back 2 

years or forward up to 20 years if it arose before your 2018 

tax year. Any ATNOL arising after your 2020 tax year may 

generally be carried forward indefinitely. For more information 

about carryover periods and special rules for 2018 through 

2020 losses, see Pub. 536, Net Operating Losses (NOLs) for 

Individuals, Estates, and Trusts.

The treatment of ATNOLs doesn't affect your regular tax 

NOL.

If you elected under section 172(b)(3) to forego the 

carryback period for regular tax purposes, the 

election will also apply for the AMT.

Line 27—Estate's or Trust's Share of Alternative 

Minimum Taxable Income

For an estate or trust that held a residual interest in a REMIC, 

line 27 may not be less than the estate's or trust's share of 

the amount on Schedule E (Form 1040), line 38, column (c). 

If that amount is larger than the amount you would otherwise 

enter on line 27, enter that amount instead and write “Sch. Q” 

on the dotted line next to line 27.

ESBTs. Enter the amount from line 27 on line 49, and go to 

line 50.

Part II—Income Distribution 

Deduction on a Minimum Tax Basis

ESBTs. Do not complete Part II.

Line 28—Adjusted Alternative Minimum Taxable 

Income

The section 199A deduction is not included in the 

distributable net alternative minimum taxable income 

(DNAMTI). The section 199A deduction must be 

added back to the amount from line 23, Schedule I (Form 

1041), to calculate the income distribution deduction on a 

minimum tax basis.

Generally, enter on line 28, Schedule I, the amount from 

line 23, Schedule I, plus the amount of the section 199A 

deduction, if any. However, if Form 1041, page 1, line 4, and 

line 23, Schedule I (after adding back the section 199A 

deduction) are losses, enter on line 28 the smaller of those 

losses. If Form 1041, line 4, is zero or a gain and line 23, 

Schedule I, is a loss (after adding back the section 199A 

deduction), enter zero on line 28.

TIP

CAUTION

!

CAUTION

!

2023 Instructions for Schedule I (Form 1041) -7-
Line 29—Adjusted Tax-Exempt Interest

To figure the adjusted tax-exempt interest (including 

exempt-interest dividends received as a shareholder in a 

mutual fund or other regulated investment company), 

subtract the total of any:

1. Tax-exempt interest from Form 1041, Schedule A, line 2, 

figured for AMT purposes; and

2. Section 212 expenses allowable for AMT purposes 

allocable to tax-exempt interest, from the amount of 

tax-exempt interest received.

Don’t subtract any deductions reported on lines 2 and 3, 

Schedule I (Form 1041).

Section 212 expenses that are directly allocable to 

tax-exempt interest are allocated only to tax-exempt interest. 

A reasonable proportion of section 212 expenses that are 

indirectly allocable to both tax-exempt interest and other 

income must be allocated to each class of income.

Line 31

Reduce the amount on line 31 by any allocable section 1202 

exclusion (as refigured for AMT purposes).

Line 32

Enter any capital gains that were paid or permanently set 

aside for charitable purposes from the current year's income 

included on line 1 of Form 1041, Schedule A. Reduce the 

amount on line 32 by any allocable section 1202 exclusion 

(as refigured for AMT purposes).

Lines 33 and 34

Capital gains and losses must take into account any basis 

adjustments from Schedule I (Form 1041), Part I, line 11.

Line 39—Adjustment for Tax-Exempt Income

In figuring the income distribution deduction on a minimum 

tax basis, the estate or trust isn't allowed a deduction for any 

item of DNAMTI (line 35) that isn't included in the gross 

income of the estate or trust figured on an AMT basis. Thus, 

for purposes of figuring the allowable income distribution 

deduction on a minimum tax basis, the DNAMTI is figured 

without regard to any tax-exempt interest (except for amounts 

from line 7).

If tax-exempt interest is the only tax-exempt income 

included in the total distributions (line 38), and the DNAMTI 

(line 35) is less than or equal to line 38, then enter on line 39 

the amount from line 29.

If tax-exempt interest is the only tax-exempt income 

included in the total distributions (line 38), and the DNAMTI is 

more than line 38 (that is, the estate or trust made a 

distribution that is less than the DNAMTI), then figure the 

adjustment by multiplying line 29 by a fraction, the numerator 

of which is the total distributions (line 38), and the 

denominator of which is the DNAMTI (line 35). Enter the 

result on line 39.

If line 38 includes tax-exempt income other than 

tax-exempt interest (except for amounts from line 7), figure 

line 39 by subtracting the total expenses allocable to 

tax-exempt income that are allowable for AMT purposes from 

tax-exempt income included on line 38.

Expenses that are directly allocable to tax-exempt income 

are allocated only to tax-exempt income. A reasonable 

proportion of expenses indirectly allocable to both 

tax-exempt income and other income must be allocated to 

each class of income.

Line 42—Income Distribution Deduction on a 

Minimum Tax Basis

Allocate the income distribution deduction figured on a 

minimum tax basis among the beneficiaries in the same 

manner as income was allocated for regular tax purposes. 

You need the allocated income distribution deduction figured 

on a minimum tax basis to figure the beneficiary's adjustment 

for minimum tax purposes, as explained under Box 

12—Alternative minimum tax (AMT) items in the 

Schedule K-1 instruction section of the Instructions for Form 

1041 and Schedules A, B, G, J, and K-1.

Part III—Alternative Minimum Tax 

Computation

Line 50—Tentative Minimum Tax Rate

If line 49 is $220,700 or less, multiply line 49 by 26% (0.26). 

Otherwise, multiply line 49 by 28% (0.28) and subtract 

$4,414 from the result.

Note. Go to Part IV of Schedule I to figure line 50 if the 

estate or trust has qualified dividends or has a gain on lines 

18a and 19 of column (2) of Schedule D (Form 1041) (as 

refigured for the AMT, if necessary).

Line 51—Alternative Minimum Foreign Tax 

Credit

To see if you need to figure the estate's or trust's 

AMT foreign tax credit, fill in line 53 of Schedule I 

(Form 1041) as instructed. If the amount on line 53 is 

greater than or equal to the amount on line 50, the estate or 

trust doesn't owe the AMT. Enter zero on line 54 and see 

Who Must Complete, earlier, to find out if you must file 

Schedule I with Form 1041. However, even if the estate or 

trust doesn't owe AMT, you may need to complete line 51 to 

see if you have an AMT foreign tax credit carryback or 

carryforward to other tax years.

To figure the AMT foreign tax credit, follow the steps 

discussed below.

Step 1. Complete and attach a separate AMT Form 1116, 

with the notation “Alt Min Tax” at the top for each separate 

limitation category specified at the top of Form 1116.

Note. When applying the separate limitation categories, use 

the applicable AMT rate instead of the regular tax rate to 

determine if any income is “high-taxed.”

Step 2. If you (on behalf of the estate or trust) previously 

made or are making the Simplified limitation election (as 

discussed later), skip Part I and enter on the AMT Form 

1116, line 17, the same amount you entered on that line for 

the regular tax. If you didn't complete Form 1116 for the 

regular tax and you previously made or are making the 

simplified limitation election (on behalf of the estate or trust), 

complete Part I and lines 15 through 17 of the AMT Form 

1116 using regular tax amounts.

If the election doesn't apply, complete Part I using only 

income and deductions allowed for the AMT that are 

attributable to sources outside the United States. If the estate 

or trust has any foreign source qualified dividends or foreign 

TIP

-8- 2023 Instructions for Schedule I (Form 1041)
source capital gains or losses, use the instructions under 

Step 3 below to determine whether you must make 

adjustments to those amounts before you include the 

amounts on line 1a or line 5 of the AMT Form 1116.

Step 3. Follow the instructions below, if applicable, to 

determine the amount of foreign source qualified dividends 

and foreign source capital gains and losses to include on 

line 1a and line 5 of the AMT Form 1116.

Foreign qualified dividends. You must adjust the 

estate's or trust's foreign source qualified dividends before 

you include those amounts on line 1a of the AMT Form 1116 

if:

• Line 60 of Schedule I (Form 1041) is greater than zero,

• Line 81 of Schedule I (Form 1041) is smaller than line 82, 

and

• The exception for foreign qualified dividends below 

doesn't apply.

But, you don’t need to make any adjustments if:

• The estate or trust qualifies for the adjustment exception 

under Qualified Dividends Tax Worksheet (Estates and 

Trusts) or Schedule D Filers in the Instructions for Form 

1116, and

• Line 60 of Schedule I (Form 1041) isn't more than 

$220,700.

Note. Use the estate's or trust's capital gains and losses as 

refigured for the AMT to determine whether your total 

amounts are less than the $20,000 threshold under the 

adjustment exception.

To adjust foreign source qualified dividends, multiply the 

estate's or trust's foreign source qualified dividends in each 

separate category by 0.5357 if the foreign source qualified 

dividends are taxed at a rate of 15%. Include the results on 

line 1a of the AMT Form 1116.

If they are taxed at a rate of 20%, multiply your foreign 

source qualified dividends in each separate category by 

0.7143. Include the results on line 1a of the AMT Form 1116.

You adjust the estate's or trust's foreign source qualified 

dividends taxed at the 0% rate by not including them on 

line 1a of Form 1116. Amounts taxed at the 0% rate are on 

line 8 of the Qualified Dividends Tax Worksheet in the 

Instructions for Form 1041, line 30, of Schedule D (Form 

1041), or line 19 of the Schedule D Tax Worksheet in the 

Instructions for Schedule D (Form 1041).

Don’t adjust the amount of any foreign source 

qualified dividends you elected to include on line 4g 

of the AMT Form 4952.

Foreign capital gains or losses. If any capital gain or 

loss from U.S. or foreign sources is different for the AMT, use 

the refigured amounts to complete this step.

To figure the adjustment for the estate's or trust's foreign 

source capital gains or losses, you must first determine 

whether you can use Worksheet A or Worksheet B in the 

Instructions for Form 1116. Otherwise, you must use the 

instructions for Capital Gains and Losses in Pub. 514, 

Foreign Tax Credit for Individuals, to figure the adjustments 

you must make to the estate's or trust's foreign source capital 

gains and losses.

Use Worksheet A if the estate or trust has foreign source 

capital gains or losses in no more than two separate 

categories, and any of the following apply.

• You weren't required to make adjustments to the estate's 

or trust's foreign source qualified dividends under the 

CAUTION

!

rules described earlier (or if the estate or trust had foreign 

source qualified dividends, you wouldn’t have been 

required to make those adjustments).

• Schedule D (Form 1041), line 18a, column (2), or line 19, 

column (2), as refigured for the AMT if necessary, is zero 

or a loss.

• On the AMT Schedule D Tax Worksheet for Form 1041, 

(a) line 17a is zero, (b) line 9 is zero, or (c) line 42 is equal 

to or greater than line 43.

• On the AMT Part V of Schedule D (Form 1041), (a) 

line 22 of that AMT Part V minus the amount on Form 

4952, line 4e, that you elected to include on Form 4952, 

line 4g, is zero or less, (b) line 27 of that AMT Part V of 

Schedule D (Form 1041) is zero; or (c) line 43 of that 

AMT Part V is equal to or greater than line 44.

Use Worksheet B if you:

• Can’t use Worksheet A,

• Have foreign source capital gains and losses in no more 

than two separate categories,

• Didn’t have any item of unrecaptured section 1250 gain 

or any item of 28% rate gain or loss for either regular tax 

or AMT, and

• Didn’t have any capital gains taxed at a rate of 0% or 

20%.

Instructions for Worksheets A and B. When you 

complete Worksheet A or Worksheet B, use foreign source 

capital gains and losses as refigured for the AMT, if 

necessary, and don’t use any foreign source capital gains 

that you elected to include on line 4g of the AMT Form 4952. 

If you must complete a Schedule D (Form 1041) for the AMT, 

use line 19 of that AMT Schedule D (Form 1041) to complete 

line 3 of Worksheet A or line 4 of the Line 2 Worksheet (For 

Line 2 of Worksheet B). Use 0.5357 instead of the number 

used for regular tax to complete lines 11, 13, and 15 of 

Worksheet B and to complete lines 8, 11, and 17 of the 

Line 15 Worksheet (For Line 15 of Worksheet B).

If the estate or trust doesn't qualify to use Worksheet A or 

Worksheet B, use the instructions for Capital Gains and 

Losses in Pub. 514 to determine the adjustments you make. 

When using the instructions in Pub. 514 to determine if you 

must adjust foreign source capital gains and losses, make 

the following substitutions.

• When the amount of any AMT gain is in the 15% rate 

group, multiply it by 0.5357 instead of the number used 

for regular tax.

• When the amount of any AMT gain is in the 20% rate 

group, multiply it by 0.7143 instead of the number used 

for regular tax.

• When the amount of any AMT gain is in the 25% rate 

group, multiply it by 0.8929 instead of the number used 

for regular tax.

• When the amount of any AMT gain is in the 28% rate 

group, multiply it by 1.0 instead of the number used for 

regular tax.

Step 4. Complete Part II and lines 9 through 14 of the AMT 

Form 1116. Use the estate's or trust's AMT foreign tax credit 

carryover, if any, on line 10.

Step 5. If the simplified limitation election doesn't apply, 

complete lines 15 through 17 of the AMT Form 1116.

Step 6. If you didn't complete Part IV of Schedule I (Form 

1041), enter the amount from Schedule I (Form 1041), 

line 27, on line 18 of the AMT Form 1116 and go to Step 7, 

later.

2023 Instructions for Schedule I (Form 1041) -9-
If you completed Part IV of Schedule I (Form 1041), 

complete an AMT Worksheet for Line 18 in the Instructions 

for Form 1116 to figure the amount to enter on Form 1116, 

line 18, if:

• Line 60 of Schedule I (Form 1041) is greater than zero, 

and

• Line 81 of Schedule I (Form 1041) is smaller than line 82.

But you don’t need to complete the Worksheet for Line 18 

if:

• The estate or trust qualifies for the adjustment exception 

discussed in the Instructions for Form 1116, and

• Line 60 of Schedule I (Form 1041) isn't more than 

$220,700.

Note. Use the estate's and trust's capital gains and 

losses as refigured for the AMT to determine if its total 

amounts are less than the $20,000 threshold under the 

adjustment exception.

If you don’t have to complete an AMT Worksheet for 

Line 18, enter the amount from line 27 of Schedule I (Form 

1041) on line 18 of the AMT Form 1116.

Instructions for completing an AMT Worksheet for 

Line 18. To complete an AMT Worksheet for Line 18 in the 

Instructions for Form 1116, follow these instructions.

1. Enter the amount from Schedule I (Form 1041), line 27, 

on line 1 of the worksheet.

2. Skip lines 2 and 3 of the worksheet.

3. Enter the amount from Schedule I (Form 1041), line 79, 

on line 4 of the worksheet.

4. Multiply line 4 of the worksheet by 0.1071 (instead of the 

number used for regular tax) and enter the results on 

line 5 of the worksheet.

5. Enter the amount from Schedule I (Form 1041), line 76, 

on line 6 of the worksheet.

6. Multiply line 6 of the worksheet by 0.2857 (instead of the 

number used for regular tax) and enter the result on 

line 7 of the worksheet.

7. Enter the amount from Schedule I (Form 1041), line 73, 

on line 8 of the worksheet.

8. Multiply line 8 of the worksheet by 0.4643 (instead of the 

number used for regular tax). Enter the result on line 9 of 

the worksheet.

9. Enter the amount from Schedule I (Form 1041), line 66, 

on line 10 of the worksheet.

10. Complete lines 11 and 12 of the worksheet as instructed 

on the worksheet.

Step 7. Enter the amount from Schedule I (Form 1041), 

line 50, on the AMT Form 1116, line 20. Complete lines 19 

through 24 of the AMT Form 1116.

Step 8. Complete Part IV of the first AMT Form 1116 only.

Enter on line 51 of Schedule I (Form 1041) the amount 

from line 35 of the first AMT Form 1116.

Attach to the estate's or trust's return all AMT Forms 1116 

(and if applicable Schedule B (Form 1116)) you used to 

figure your AMT foreign tax credit.

AMT foreign tax credit carryback and carryforward. If 

the AMT foreign tax credit is limited, any unused amount can 

be carried back or forward under section 904(c). The election 

to forego the carryback period for regular tax purposes also 

applies for the AMT.

Simplified limitation election. The estate or trust may 

elect to use a simplified section 904 limitation to figure its 

AMT foreign tax credit. To do so, use the estate's or trust's 

regular tax income for Form 1116, Part I, instead of refiguring 

the estate's or trust's foreign source income for the AMT, as 

described in Step 2 in the instructions for line 51, earlier. The 

estate or trust must make the election for the first tax year 

after 1997 for which it claims an AMT foreign tax credit. If it 

doesn't make the election for that year, it may not make it for 

a later year. Once made, the election applies to all later tax 

years and may be revoked only with IRS consent.

Line 53—Tax

ESBTs. Enter the tax shown on line 14a of the ESBT Tax 

Worksheet (minus any foreign tax credit from line 15a of the 

ESBT worksheet).

Line 54—Alternative Minimum Tax

ESBTs. Enter the amount shown on line 14b of the ESBT Tax 

Worksheet.

Part IV—Line 50 Computation Using 

Maximum Capital Gains Rates

Lines 56, 57, and 58

If you used Schedule D (Form 1041), the Schedule D Tax 

Worksheet in the Instructions for Schedule D (Form 1041), or 

the Qualified Dividends Tax Worksheet in the Instructions for 

Form 1041, you may generally enter the amounts as 

instructed on Schedule I (Form 1041), lines 56, 57, and 58. 

But don’t use those amounts if any of the following apply.

1. The gain or loss from any transaction reported on Form 

8949 or Schedule D (Form 1041) is different for the AMT 

(for example, because the AMT basis was different due 

to depreciation adjustments or an incentive stock option 

adjustment or the AMT capital loss carryover from 2022 

was different).

2. You didn't complete Part V of Schedule D (Form 1041), 

the Schedule D Tax Worksheet in the Instructions for 

Schedule D (Form 1041), or the Qualified Dividends Tax 

Worksheet in the Instructions for Form 1041 because 

Form 1041, line 23, or line 13 of the ESBT Tax 

Worksheet, was zero or less.

3. The estate or trust received a Schedule K-1 (Form 1041) 

that shows an amount in box 12 with code B, C, D, E, or 

F. If this applies, see If the estate or trust is a beneficiary 

of another estate or trust, later.

If 1 above applies, complete an AMT Form 8949. Next, if 1 

or 3 applies, complete Parts I through IV of an AMT 

Schedule D (Form 1041) by refiguring the amounts of your 

gains and losses for the AMT. Then, if 1, 2, or 3 applies, 

complete the following lines of the applicable schedule or 

worksheet.

• Lines 22 through 26 of an AMT Schedule D (Form 1041),

• Lines 2 through 13 of an AMT Schedule D Tax 

Worksheet in the Instructions for Schedule D (Form 

1041), or

• Lines 2 through 4 of a Qualified Dividends Tax Worksheet 

in the Instructions for Form 1041.

If you were required to complete an AMT Form 4952, use 

it to figure the amount to enter on line 25 of the AMT 

-10- 2023 Instructions for Schedule I (Form 1041)
Schedule D (Form 1041), lines 3 and 4 of the AMT 

Schedule D Tax Worksheet in the Instructions for Schedule D 

(Form 1041), and line 3 of the Qualified Dividends Tax 

Worksheet. Use amounts from the AMT Schedule D (Form 

1041), AMT Schedule D Tax Worksheet in the Instructions for 

Schedule D (Form 1041), or Qualified Dividends Tax 

Worksheet in the Instructions for Form 1041 to complete 

Schedule I (Form 1041), lines 56, 57, and 58. Keep the AMT 

Form 8949, AMT Schedule D (Form 1041), and applicable 

AMT worksheet for your records, but don’t attach any of them 

to Form 1041.

Don’t decrease the estate's or trust's section 1202 

exclusion by the amount, if any, included on line 8 of 

Schedule I (Form 1041) .

If the estate or trust is a beneficiary of another estate or 

trust. If the estate or trust received a Schedule K-1 (Form 

1041) from another estate or trust that shows an amount in 

box 12 with code B, C, D, E, or F, follow the instructions in the 

table below.

IF the code in box 12 is... THEN include that amount in the total 

on...

B line 2 of an AMT Qualified Dividends Tax 

Worksheet in the Instructions for Form 

1041; line 23 of an AMT Schedule D 

(Form 1041); or line 2 of an AMT 

Schedule D Tax Worksheet in the 

Instructions for Schedule D (Form 1041), 

whichever applies.

C line 5, column (h), of an AMT Schedule D 

(Form 1041).

D line 12, column (h), of an AMT 

Schedule D (Form 1041).

E line 11 of an AMT Unrecaptured Section 

1250 Gain Worksheet in the Instructions 

for Schedule D (Form 1041).

F line 4 of an AMT 28% Rate Gain 

Worksheet in the Instructions for 

Schedule D (Form 1041).

CAUTION

!

Line 61

If line 60 is $220,700 or less, multiply line 60 by 26% (0.26). 

Otherwise, multiply line 60 by 28% (0.28) and subtract 

$4,414 from the result.

Line 82

If line 55 is $220,700 or less, multiply line 55 by 26% (0.26). 

Otherwise, multiply line 55 by 28% (0.28) and subtract 

$4,414 from the result.

2023 Instructions for Schedule I (Form 1041) -11-