OMB No. 1545-1073

Form 8801

Department of the Treasury

Internal Revenue Service

Attachment

Sequence No. 74  Attach to your tax return.

Name(s) shown on return Identifying number

Net Minimum Tax on Exclusion Items

1 Combine lines 16 through 18 of your 1998 Form 6251. Estates and trusts, see instructions 1

2 Enter adjustments and preferences treated as exclusion items. See instructions 2

3 ( ) 3 Minimum tax credit net operating loss deduction. See instructions

Combine lines 1, 2, and 3. If zero or less, enter -0- here and on line 15 and go to Part II. If more

than $165,000 and you were married filing separately for 1998, see instructions

4

4

5

Enter: $45,000 if married filing jointly or qualifying widow(er) for 1998; $33,750 if single or head

of household for 1998; or $22,500 if married filing separately for 1998. Estates and trusts, enter

$22,500

5

6

Enter: $150,000 if married filing jointly or qualifying widow(er) for 1998; $112,500 if single or head

of household for 1998; or $75,000 if married filing separately for 1998. Estates and trusts, enter

$75,000

6

7 Subtract line 6 from line 4. If zero or less, enter -0- here and on line 8 and go to line 9 7

8 Multiply line 7 by 25% (.25) 8

9

9 Subtract line 8 from line 5. If zero or less, enter -0-. If this form is for a child under age 14, see

instructions

10

Subtract line 9 from line 4. If zero or less, enter -0- here and on line 15, and go to Part II. Form

1040NR filers, see instructions

10

11

11 If you completed Schedule D (Form 1040 or 1041) for 1998 and had an amount on line 25 or

line 27 of Schedule D (Form 1040) (line 24 or line 26 of Schedule D (Form 1041)) or you would

have had an amount on either of those lines had you completed Part IV of Schedule D (Form

1040) (or Part V of Schedule D (Form 1041)), go to Part III of Form 8801 to figure the amount to

enter on this line. All others: Multiply line 10 by 26% (.26) if line 10 is: $175,000 or less if single,

head of household, married filing jointly, qualifying widow(er), or an estate or trust for 1998; or

$87,500 or less if married filing separately for 1998. Otherwise, multiply line 10 by 28% (.28)

and subtract from the result: $3,500 if single, head of household, married filing jointly, qualifying

widow(er), or an estate or trust for 1998; or $1,750 if married filing separately for 1998

12 Minimum tax foreign tax credit on exclusion items. See instructions 12

13 Tentative minimum tax on exclusion items. Subtract line 12 from line 11 13

14 Enter the amount from your 1998 Form 6251, line 27, or Form 1041, Schedule I, line 38 14

15 Net minimum tax on exclusion items. Subtract line 14 from line 13. If zero or less, enter -0- 15

Minimum Tax Credit and Carryforward to 2000

16 Enter the amount from your 1998 Form 6251, line 28, or Form 1041, Schedule I, line 39 16

17 Enter the amount from line 15 above 17

18 Subtract line 17 from line 16. If less than zero, enter as a negative amount 18

19 1998 minimum tax credit carryforward. Enter the amount from your 1998 Form 8801, line 26 19

Enter the total of your 1998 unallowed nonconventional source fuel credit and 1998 unallowed

qualified electric vehicle credit. See instructions

20

20

21 Combine lines 18, 19, and 20. If zero or less, stop here and see instructions 21

22 Enter your 1999 regular income tax liability minus allowable credits. See instructions 22

23 Enter the amount from your 1999 Form 6251, line 26, or 1999 Form 1041, Schedule I, line 37 23

24 Subtract line 23 from line 22. If zero or less, enter -0- 24

25 Minimum tax credit. Enter the smaller of line 21 or line 24. Also enter this amount on your 1999

Form 1040, line 47; Form 1040NR, line 44; or Form 1041, Schedule G, line 2d 25

26 Minimum tax credit carryforward to 2000. Subtract line 25 from line 21. Keep a record of this

amount because it can be carried forward and used in future years 26

Cat. No. 10002S

Part II

Part I

Credit For Prior Year Minimum Tax—

Individuals, Estates, and Trusts

For Paperwork Reduction Act Notice, see page 4. Form 8801 (1999)

(99)

1999
Line 11 Computation Using Maximum Capital Gains Rates

27 Enter the amount from line 10 27

28

Enter the amount from your 1998 Schedule D (Form 1040), line 27 (or

1998 Schedule D (Form 1041), line 26) 

28

29

Enter the amount from your 1998 Schedule D (Form 1040), line 25 (or

1998 Schedule D (Form 1041), line 24)

29

30 Add lines 28 and 29 30

Enter the amount from your 1998 Schedule D (Form 1040), line 22 (or

1998 Schedule D (Form 1041), line 21)

31

31

32 Enter the smaller of line 30 or line 31 32

33 Subtract line 32 from line 27. If zero or less, enter -0-  33

34

34 Multiply line 33 by 26% (.26) if line 33 is: $175,000 or less if single, head of household, married

filing jointly, qualifying widow(er), or an estate or trust for 1998; or $87,500 or less if married filing

separately for 1998. Otherwise, multiply line 33 by 28% (.28) and subtract from the result: $3,500

if single, head of household, married filing jointly, qualifying widow(er), or an estate or trust for

1998; or $1,750 if married filing separately for 1998

35

Enter the amount from your 1998 Schedule D (Form 1040), line 36 (or

1998 Schedule D (Form 1041), line 35). If you did not complete Part

IV of your 1998 Schedule D (Form 1040) (Part V of the 1998 Schedule

D (Form 1041) for an estate or trust), enter -0-

35

36 Enter the smallest of line 27, line 28, or line 35  36

37 Multiply line 36 by 10% (.10) 37

Form 8801 (1999) Page 2

Part III

38 Enter the smaller of line 27 or line 28 38

39 Enter the amount from line 36 39

40 Subtract line 39 from line 38. If zero or less, enter -0- 

41 Multiply line 40 by 20% (.20)

42 Enter the amount from line 27

43 Add lines 33, 36, and 40

44 Subtract line 43 from line 42

45 Multiply line 44 by 25% (.25)

46 Add lines 34, 37, 41, and 45

47 Multiply line 27 by 26% (.26) if line 27 is: $175,000 or less if single, head of household, married

filing jointly, qualifying widow(er), or an estate or trust for 1998; or $87,500 or less if married filing

separately for 1998. Otherwise, multiply line 27 by 28% (.28) and subtract from the result: $3,500

if single, head of household, married filing jointly, qualifying widow(er), or an estate or trust for

1998; or $1,750 if married filing separately for 1998

48 Enter the smaller of line 46 or line 47 here and on line 11

40

41

42

43

44

45

46

47

48

Caution: If you are an individual and you did not complete Part IV of your 1998 Schedule D (Form

1040), complete lines 20 through 27 of that Schedule D before completing this part. For an estate

or trust that did not complete Part V of the 1998 Schedule D (Form 1041), complete lines 19

through 26 of that Schedule D before completing this part.

Note: Skip lines 42 through 45 if line 29 above is zero.

Form 8801 (1999)
Form 8801 (1999) Page 3

For loss years beginning before

1987, the amount of MTCNOL that

may be carried forward to tax years

beginning after 1986 is equal to the

amount of regular tax NOL that may

be carried from such loss years to

the first tax year beginning after

1986.

To determine the amount of

MTCNOL that may be carried to tax

years other than 1998, apply

sections 172(b)(2) and 172(d), with

appropriate modifications to take

into account exclusion items.

If your filing status was married filing

separately for 1998 and line 4 is

more than $165,000, you must

include an additional amount on line

4. If line 4 is $255,000 or more,

include an additional $22,500 on line

4. Otherwise, include 25% of the

excess of the amount on line 4 over

$165,000. For example, if the

amount on line 4 is $185,000, enter

$190,000 instead—the additional

$5,000 is 25% of $20,000 ($185,000

minus $165,000).

If this form is for a child who was

under age 14 on January 1, 1999,

and at least one of the child’s

parents was alive on December 31,

1998, do not enter more than the

sum of the child’s 1998 earned

income plus $5,000.

Note: If you included any exclusion

item on a line not listed above,

include that item in the amount to

be entered on line 2. For example, if

depletion was included on Form

6251 as an adjustment on line 11

(passive activities) instead of on line

14b (depletion), include it as an

exclusion item when figuring the

amount for line 2.

Line 3

For loss years beginning after

1986, your MTCNOL is the excess

of the deductions (excluding the

MTCNOLD), over the income used

to figure alternative minimum taxable

For example, the limitation of

nonbusiness deductions to the

amount of nonbusiness income

must be figured separately for the

MTCNOL using only nonbusiness

income and deductions, taking into

account only exclusion items.

However, ignore the disallowance of

the deduction for personal

exemptions under section 172(d)(3)

because it has already been taken

into account in figuring AMTI using

only exclusion items.

Enter on this line the adjustments

and preferences treated as

exclusions. Exclusion items are your

AMT adjustments and preferences

for: the standard deduction, itemized

deductions (including any

investment interest expense

reported on Schedule E), certain

tax-exempt interest, depletion, the

section 1202 exclusion, and any

other adjustments related to

exclusion items. Combine lines 1

through 7, 13, 14b, and 14m of your

1998 Form 6251. Do not include

any amount from line 12 of the 1998

Form 6251. Instead, include the

exclusion item amount from line 12d

of the Schedule(s) K-1 (Form 1041)

you received for 1998. If you

included on line 14o any

adjustments related to exclusion

items, also include those

adjustments in the amount to be

entered on line 2. Enter the total on

line 2.

Line 2

Your minimum tax credit net

operating loss deduction

(MTCNOLD) is the aggregate of the

minimum tax credit net operating

loss (MTCNOL) carryovers and

carrybacks to 1998. Your MTCNOL

is figured as follows:

Line 4

Line 9

General Instructions

Section references are to the

Internal Revenue Code.

Purpose of Form

Form 8801 is used by individuals,

estates, and trusts to figure the

minimum tax credit, if any, for

alternative minimum tax (AMT)

incurred in prior tax years. The form

is also used to figure any minimum

tax credit carryforward.

Who Should File

Form 8801 should be completed by

individuals, estates, and trusts that

had:

● An AMT liability in 1998 and

adjustments or preferences (other

than exclusion items) in 1998,

● A minimum tax credit carryforward

from 1998 to 1999, or

Skip lines 1 through 3 of Form 8801.

Complete Parts I and II of another

1998 Form 1041, Schedule I. For

Part I of Schedule I, take into

account only exclusion items (the

amounts included on lines 4a

through 4d, 4p, and 4q, and the

section 1202 exclusion tax

preference item included on line 4u)

and any other adjustments related to

exclusion items included on line 4u

of Schedule I. On line 7 of Schedule

I, use the minimum tax credit net

operating loss deduction

(MTCNOLD). However, do not limit

the MTCNOLD to 90% of the

amount on line 6 of Schedule I (see

Specific Instructions

The AMT is attributable to two types

of adjustments and preferences—

deferral items and exclusion items.

Deferral items generally do not

cause a permanent difference in

taxable income over time (e.g.,

depreciation). Exclusion items, on

the other hand, do cause a

permanent difference (e.g., the

standard deduction). The minimum

tax credit is allowed only on the AMT

attributable to deferral items.

● A nonconventional source fuel

credit or a qualified electric vehicle

credit not allowed for 1998 (see the

instructions for line 20).

File Form 8801 only if line 21 is

more than zero.

Line 1—Estates and Trusts

the instructions for line 3 below for

how to figure the MTCNOLD). On

Part II of Schedule I, do not take

into account any basis adjustments

arising from deferral items in

completing lines 18 and 19. If the

amount on line 12 of Schedule I is

zero or less, enter zero on line 4 of

Form 8801. Otherwise, enter the

amount from line 12 of Schedule I,

adjusted for exclusion items that

were allocated to the beneficiary, on

line 4 of Form 8801.

income (AMTI), taking into account

only exclusion items. Figure this

excess with the modifications in

section 172(d), taking into account

only exclusion items (i.e., the section

172(d) modifications should be

figured separately for the MTCNOL).
Form 8801 (1999) Page 4

Enter the total of any

nonconventional source fuel credit

and qualified electric vehicle credit

not allowed for 1998 solely because

of the limitation under sections

29(b)(6)(B) and 30(b)(3)(B).

If line 21 is zero or less, you do not

have a minimum tax credit or a

minimum tax credit carryforward. Do

not complete the rest of this form

and do not file it.

Follow the instructions below and

refer to your 1999 income tax return

to figure the amount to enter on

line 22.

Form 1040. Subtract from the

amount on line 40 the total of any

credits on lines 41 through 47 (not

including any credit for prior year

minimum tax) and any write-in credit

on line 48.

Form 1040NR. Subtract from the

amount on line 39 the total of any

credits on lines 40 through 44 (not

including any credit for prior year

minimum tax) and any write-in credit

on line 45.

Form 1041, Schedule G. Subtract

the total of any credits on lines 2a

through 2c from line 1c.

If you filed Form 1040NR for 1998

and had a net gain on the

disposition of U.S. real property

interests, line 10 cannot be less than

the smaller of that net gain or line 4.

If you have comments concerning

the accuracy of these time

estimates or suggestions for making

this form simpler, we would be

happy to hear from you. See the

instructions for the tax return with

which this form is filed.

Paperwork Reduction Act Notice.

We ask for the information on this

form to carry out the Internal

Revenue laws of the United States.

You are required to give us the

information. We need it to ensure

that you are complying with these

laws and to allow us to figure and

collect the right amount of tax.

You are not required to provide

the information requested on a form

that is subject to the Paperwork

Reduction Act unless the form

displays a valid OMB control

number. Books or records relating to

a form or its instructions must be

retained as long as their contents

may become material in the

administration of any Internal

Revenue law. Generally, tax returns

and return information are

confidential, as required by section

6103.

Line 10

Line 20

Line 21

Line 22

The time needed to complete and

file this form will vary depending on

individual circumstances. The

estimated average time is:

recordkeeping, 2 hr., 4 min.;

learning about the law or the

form, 1 hr., 51 min.; preparing the

form, 1 hr., 40 min.; copying,

assembling, and sending the form

to the IRS, 17 min.

Line 12

The minimum tax foreign tax credit

on exclusion items (MTFTCE) is your

1998 AMT foreign tax credit

(AMTFTC) refigured using only

exclusion items. Follow these steps

to figure your MTFTCE:

1. Use a separate 1998 Form

1116 for the MTFTCE 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.”

2. If you figured your 1998

AMTFTC using the simplified

limitation election, skip Part I and

enter on the MTFTCE Form 1116,

line 16, the same amount you

entered on that line for the 1998

AMT Form 1116. Otherwise,

complete Part I using only taxable

income and exclusion items that are

attributable to sources outside the

United States. If the Instructions for

Form 1116 require you to complete

Worksheet A or B, you must first

complete an MTFTCE Worksheet for

Line 17, following the instructions

under 5 below.

3. Complete lines 9 through 13 of

the MTFTCE Form 1116. For line 9,

use the same amount you entered

on that line for 1998 for the regular

tax. Use your MTFTCE carryover, if

any, on line 10.

4. If you did not make the

simplified limitation election for

1998, complete lines 14 through 16

of the MTFTCE Form 1116.

5. If you did not complete Part III

of Form 8801, enter the amount

from Form 8801, line 4, on line 17 of

the MTFTCE Form 1116 and go to 6

below. Otherwise, follow these steps

to complete, for the MTFTCE, the

Worksheet for Line 17 on page 10 of

the 1998 Form 1116 instructions.

a. Enter the amount from Form

8801, line 4, on line 1 of the

MTFTCE Worksheet for Line 17.

b. Complete Part IV of a 1998

Schedule D (Form 1040) (or Part V

of Schedule D (Form 1041)) for the

MTFTCE as follows. Enter the

amount from Form 8801, line 10, on

line 19 of the MTFTCE Schedule D

(line 18 of Schedule D (Form 1041)).

Use amounts from Parts I, II, and III

of your 1998 Schedule D (Form

1040) (or Parts I through IV of

Schedule D (Form 1041)) for the

regular tax to complete the rest of

the MTFTCE Schedule D. You may

skip lines 33, 37, 41, 47, and 51

through 54 (lines 32, 36, 40, 46, and

50 through 53 of Schedule D (Form

1041)). Keep the MTFTCE Schedule

D for your records, but do not

attach it to your tax return.

c. Complete the rest of the

MTFTCE Worksheet for Line 17

using the amounts from the MTFTCE

Schedule D.

6. Enter the amount from Form

8801, line 11, on the MTFTCE Form

1116, line 19. Complete lines 18, 20,

and 21 of the MTFTCE Form 1116.

7. Complete Part IV of the first

MTFTCE Form 1116 only. Enter the

amount from the MTFTCE Form

1116, line 32, on Form 8801, line 12.

8. Keep all Forms 1116 you used

to figure your MTFTCE, but do not

attach them to your tax return.

If line 13 of the MTFTCE Form

1116 is greater than line 20 of the

MTFTCE Form 1116, keep a record

of the difference. This amount is

carried forward and used to figure

your MTFTCE next year.