OMB No. 1545-1073

Form 8801

Department of the Treasury

Internal Revenue Service

Attachment

 Attach to Form 1040, 1040NR, or 1041. Sequence No. 74

Name(s) shown on return Identifying number

Net Minimum Tax on Exclusion Items

1 Combine lines 1, 6, and 10 of your 2004 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 $191,000 and you were married filing separately for 2004, see instructions

4

4

5

Enter: $58,000 if married filing jointly or qualifying widow(er) for 2004; $40,250 if single or head

of household for 2004; or $29,000 if married filing separately for 2004. Estates and trusts, enter

$22,500

5

6

Enter: $150,000 if married filing jointly or qualifying widow(er) for 2004; $112,500 if single or head

of household for 2004; or $75,000 if married filing separately for 2004. 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 for 2004 you reported capital gain distributions directly on Form 1040, line 13; you reported

qualified dividends on Form 1040, line 9b (Form 1041, line 2b(2)); or you had a gain on both lines

15 and 16 of Schedule D (Form 1040) (lines 14a and 15, column (2), of Schedule D (Form 1041)),

complete Part III of Form 8801 and enter the amount from line 46 here.

Minimum tax foreign tax credit on exclusion items (see instructions) 12

13

14

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

14

15

Enter the amount from your 2004 Form 6251, line 34, or 2004 Form 1041, Schedule I, line 55

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

16 16

Minimum Tax Credit and Carryforward to 2006

Enter the amount from your 2004 Form 6251, line 35, or 2004 Form 1041, Schedule I, line 56

17 17

18

Enter the amount from line 15 above

18

19

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

19

20

2004 minimum tax credit carryforward. Enter the amount from your 2004 Form 8801, line 26

20 Enter the total of your 2004 unallowed nonconventional source fuel credit and 2004 unallowed

qualified electric vehicle credit (see instructions)

21 21

22

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

22

23

Enter your 2005 regular income tax liability minus allowable credits (see instructions)

23

24 24

Enter the amount from your 2005 Form 6251, line 33, or 2005 Form 1041, Schedule I, line 54

25

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

25

26

Minimum tax credit. Enter the smaller of line 21 or line 24. Also enter this amount on your 2005

Form 1040, line 55; Form 1040NR, line 50; or Form 1041, Schedule G, line 2d

26

Minimum tax credit carryforward to 2006. Subtract line 25 from line 21. Keep a record of this

amount because you may use it in future years

Cat. No. 10002S

Part II

Part I

Credit for Prior Year Minimum Tax—

Individuals, Estates, and Trusts

For Paperwork Reduction Act Notice, see page 6. Form 8801 (2005)

(99)

 See instructions.

● All others: If line 10 is $175,000 or less ($87,500 or less if married filing separately for

2004), multiply line 10 by 26% (.26). Otherwise, multiply line 10 by 28% (.28) and subtract

$3,500 ($1,750 if married filing separately for 2004) from the result.

12

13



2005
Tax Computation Using Maximum Capital Gains Rates

27 Enter the amount from Form 8801, line 10 27

28

Enter the amount from line 6 of your 2004 Qualified Dividends and

Capital Gain Tax Worksheet, the amount from line 13 of your 2004

Schedule D Tax Worksheet, or the amount from line 22 of the 2004

Schedule D (Form 1041), whichever applies.*

28

29

Enter the amount from line 19 of your 2004 Schedule D (Form 1040),

or line 14b, column (2), of the 2004 Schedule D (Form 1041)

29

30

Add lines 28 and 29, and enter the smaller of that result or the amount

from line 10 of your 2004 Schedule D Tax Worksheet

30

31

32

Enter the smaller of line 27 or line 30

32

33

Subtract line 31 from line 27

33

34

If line 32 is $175,000 or less ($87,500 or less if married filing separately for 2004), multiply line

32 by 26% (.26). Otherwise, multiply line 32 by 28% (.28) and subtract $3,500 ($1,750 if married

filing separately for 2004) from the result 

34

Enter:

● $58,100 if married filing jointly or qualifying widow(er) for 2004,

● $29,050 if single or married filing separately for 2004,

● $38,900 if head of household for 2004, or

● $1,950 for an estate or trust

37 Enter the smaller of line 27 or line 28 37

38

Form 8801 (2005) Page 2

Part III

39

40

Multiply line 38 by 5% (.05) 

Subtract line 38 from line 37

Subtract line 37 from line 31

Multiply line 42 by 25% (.25) 

Add lines 33, 39, 41, and 43

40

41

Caution: If you did not complete the 2004 Qualified Dividends and Capital Gain Tax Worksheet,

the 2004 Schedule D Tax Worksheet, or Part V of the 2004 Schedule D (Form 1041), see the

instructions before completing this part.

If line 29 is zero or blank, skip lines 42 and 43 and go to line 44. Otherwise, go to line 42.

Form 8801 (2005)

Enter the smaller of line 36 or line 37

* The 2004 Qualified Dividends and Capital Gain Tax Worksheet is on page 34 of the 2004 Instructions for Form 1040. The 2004 Schedule D Tax Worksheet is on

page D-9 of the 2004 Instructions for Schedule D (Form 1040) (page 37 of the 2004 Instructions for Form 1041).

38

If line 27 is $175,000 or less ($87,500 or less if married filing separately for 2004), multiply line

27 by 26% (.26). Otherwise, multiply line 27 by 28% (.28) and subtract $3,500 ($1,750 if married

filing separately for 2004) from the result

Enter the smaller of line 44 or line 45 here and on line 11 46

31

39

Multiply line 40 by 15% (.15) 

44

42

43

45

41

42

43

44

46

45

35 Enter the amount from line 7 of your 2004 Qualified Dividends and Capital

Gain Tax Worksheet, the amount from line 14 of your 2004 Schedule D Tax

Worksheet, or the amount from line 23 of the 2004 Schedule D (Form 1041),

whichever applies. If you did not complete either worksheet or Part V of the

2004 Schedule D (Form 1041), enter -0- 35

36 Subtract line 35 from line 34. If zero or less, enter -0- 36

If you figured your 2004 tax using the 2004 Qualified Dividends

and Capital Gain Tax Worksheet, skip line 29 and enter the amount

from line 28 on line 30. Otherwise, go to line 29.
Form 8801 (2005) Page 3

To determine the amount of MTCNOL that may be

carried to tax years other than 2004, apply sections

172(b)(2) and 172(d) with appropriate modifications to

take into account only exclusion items.

Exclusion items on other lines. If you included any

exclusion item on a line not listed above, include that

item in the amount you enter on line 2. For example, if

depletion was included on Form 6251 as an

adjustment on line 18 (passive activities) instead of on

line 9 (depletion), include it as an exclusion item in the

amount you enter on line 2.

Line 3

Your MTCNOL is the excess of the deductions

(excluding the MTCNOLD) over the income used to

figure alternative minimum taxable income (AMTI)

taking into account only exclusion items. Figure this

excess with the modifications in section 172(d) taking

into account only exclusion items (that is, the section

172(d) modifications must be figured separately for the

MTCNOL).

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 but 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 to figure AMTI attributable only to

exclusion items.

Your minimum tax credit net operating loss deduction

(MTCNOLD) is the total of the minimum tax credit net

operating loss (MTCNOL) carryovers and carrybacks to

2004. Your MTCNOL is figured as follows.

General Instructions

Section references are to the Internal Revenue Code.

Purpose of Form

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

to figure the minimum tax credit, if any, for alternative

minimum tax (AMT) you incurred in prior tax years and

to figure any minimum tax credit carryforward.

Who Should File

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

trust that for 2004 had:

● An AMT liability and adjustments or preferences

other than exclusion items,

● A minimum tax credit carryforward to 2005, or

Skip lines 1 through 3 of Form 8801. Complete Parts I

and II of another 2004 Form 1041, Schedule I. For Part

I of Schedule I, take into account only exclusion items

(the amounts included on lines 2 through 6, 8, and 9,

and any other adjustments related to exclusion items

included on line 23 of Schedule I). On line 24 of

Schedule I, use the minimum tax credit net operating

loss deduction (MTCNOLD). However, do not limit the

MTCNOLD to 90% of the total of lines 1 through 23 of

Schedule I. (See the instructions for line 3 on this page

for how to figure the MTCNOLD.) In Part II of Schedule

I, complete lines 35 and 36 without taking into account

any basis adjustments arising from deferral items. If

the amount on Schedule I, line 29, is zero or less, enter

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

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

adjusted for exclusion items that were allocated to the

beneficiary.

Specific Instructions

The AMT is caused by two types of adjustments and

preferences—deferral items and exclusion items.

Deferral items (for example, depreciation) generally do

not cause a permanent difference in taxable income

over time. Exclusion items (for example, the standard

deduction), on the other hand, do cause a permanent

difference. The minimum tax credit is allowed only for

the AMT caused by deferral items.

● An unallowed nonconventional source fuel credit or

qualified electric vehicle credit (see the instructions for

line 20).

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

Line 1—Estates and Trusts

Schedule E), certain tax-exempt interest, depletion, the

section 1202 exclusion, and any other adjustments

related to exclusion items. Do not include the standard

deduction. It has already been included on line 1.

Combine lines 2 through 5, 7 through 9, 11, and 12 of

your 2004 Form 6251. Do not include any amount from

line 14 of the 2004 Form 6251. Instead, include the

exclusion item amount from line 12d of the Schedule(s)

K-1 (Form 1041) you received for 2004. If you included

on line 26 of the 2004 Form 6251 any adjustments

related to exclusion items, also include those

adjustments in the amount you enter on line 2. Enter

the total on line 2.

Line 2

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: itemized deductions

(including any investment interest expense reported on

If your filing status was married filing separately for

2004 and line 4 is more than $191,000, you must

include an additional amount on line 4. If line 4 is

$307,000 or more, include an additional $29,000 on

line 4. Otherwise, include 25% of the excess of the

amount on line 4 over $191,000. For example, if the

amount on line 4 is $211,000, enter $216,000

instead—the additional $5,000 is 25% of $20,000

($211,000 minus $191,000).

Line 4
Form 8801 (2005) Page 4

If this form is for a child who was under age 14 at the

end of 2004 and at least one of the child’s parents was

alive at the end of 2004, do not enter more than the

sum of the child’s 2004 earned income plus $5,750.

Line 9

If you filed Form 1040NR for 2004 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.

Line 10

Line 12

If you made an election to claim the foreign tax credit

on your 2004 Form 1040 without filing Form 1116,

enter on Form 8801, line 12, the amount from your

2004 Form 1040, line 46. Otherwise, the minimum tax

foreign tax credit on exclusion items (MTFTCE) is your

2004 AMT foreign tax credit (AMTFTC) refigured using

only exclusion items. Follow these steps to figure your

MTFTCE.

Step 1. Use a separate 2004 Form 1116 for the

MTFTCE for each separate category of income

specified at the top of Form 1116.

A child born on January 1, 1991, is considered to be

age 14 at the end of 2004 and is therefore not subject

to this limitation.

When applying the separate categories of income,

use the applicable AMT rate instead of the regular tax

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

Step 2. If you figured your 2004 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 2004 AMT Form 1116.

Otherwise, complete Part I using only taxable income

and exclusion items that are attributable to sources

outside the United States. If you had any 2004 foreign

source qualified dividends or foreign source capital

gains (including any foreign source capital gain

distributions) or losses, you may use the instructions

under Step 3 to determine whether you must make

adjustments to those amounts before you include the

amounts on line 1 or line 5 of the MTFTCE Form 1116.

If you choose not to follow the instructions under Step

3, see sections 1(h)(11)(C)(iv) and 904(b)(2) to determine

the adjustments you must make.

Step 3. Follow the instructions below, if applicable,

to determine the amount of foreign source qualified

dividends, capital gain distributions, and other capital

gains and losses to include on line 1 and line 5 of the

MTFTCE Form 1116.

Foreign qualified dividends. You must adjust your

foreign source qualified dividends before you include

those amounts on line 1 of the MTFTCE Form 1116 if:

● Line 44 of Form 8801 is smaller than line 45, and

● Line 32 of Form 8801 is greater than zero.

● Line 32 of Form 8801 is not more than $175,000 ($87,500

if married filing separately).

But you do not need to make any adjustments if:

● You qualified for the adjustment exception under

Qualified Dividends and Capital Gain Tax Worksheet

To adjust your foreign source qualified dividends,

multiply your foreign source qualified dividends in each

separate category by 0.5357. Include the results on

line 1 of the applicable MTFTCE Form 1116. But do

not adjust the amount of any foreign source qualified

dividend you elected to include on line 4g of

Form 4952.

Individuals with capital gain distributions only. If

you had no 2004 capital gains or losses other than

capital gain distributions from box 2a of Form(s)

1099-DIV or substitute statement(s), you must adjust

your foreign source capital gain distributions before

you include those amounts on line 1 of the MTFTCE

Form 1116 if you are required to adjust your foreign

source qualified dividends under the rules just

described or you would be required to adjust your

foreign source qualified dividends if you had any.

To adjust your foreign source capital gain distributions,

multiply your foreign source capital gain distributions in

each separate category by 0.5357. Include the results on

line 1 of the applicable MTFTCE Form 1116. But do not

adjust the amount of any foreign source capital gain

distribution you elected to include on line 4g of

Form 4952.

● You figured your 2004 tax using the Qualified

Dividends and Capital Gain Tax Worksheet in the Form

1040 instructions and line 3 of that worksheet minus

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

to include on line 4g of Form 4952 is zero or less.

Other capital gains or losses. Use Worksheet A in

the instructions for the 2004 Form 1116 to determine

the adjustments you must make to your foreign source

capital gains or losses if you have foreign source capital

gains and losses in no more than two separate

categories and one of the following applies:

● Line 15 or 16 of your 2004 Schedule D (Form 1040)

(line 14a or 15 of Schedule D (Form 1041)) is zero or a

loss.

● You figured your 2004 tax using Schedule D (Form

1041) and line 18 of Schedule D minus the amount on

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

line 4g of Form 4952 is zero or less.

● You figured your 2004 tax using the Schedule D Tax

Worksheet in the Schedule D (Form 1040) instructions

or in the Form 1041 instructions and line 9 of that

worksheet is zero or a loss.

● You were not required to make adjustments to your

foreign source qualified dividends under the rules

described above (or you would not have been required

to make those adjustments if you had foreign source

qualified dividends).

(Individuals), Qualified Dividends Tax Worksheet

(Estates and Trusts), or Adjustments to foreign qualified

dividends under Schedule D Filers, whichever applies,

in the Form 1116 instructions when you completed

your regular tax Form 1116 (or you would have

qualified for that adjustment exception if you had

completed a regular tax Form 1116) for 2004, and
Form 8801 (2005) Page 5

Step 4. Complete lines 9 through 13 of the MTFTCE

Form 1116. For line 9, use the same amount you

entered on that line for 2004 for the regular tax. Use

your MTFTCE carryover, if any, on line 10.

Step 5. If you did not figure your 2004 AMTFTC

using the simplified limitation election, complete lines

14 through 16 of the MTFTCE Form 1116.

Step 6. 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 Step 7. If you

completed Part III of Form 8801, you must complete,

for the MTFTCE, the Worksheet for Line 17 in the Form

1116 instructions to determine the amount to enter on

line 17 of the MTFTCE Form 1116 if:

● You qualified for the adjustment exception under

Qualified Dividends and Capital Gain Tax Worksheet

(Individuals), Qualified Dividends Tax Worksheet

(Estates and Trusts), or Adjustments to foreign qualified

dividends under Schedule D Filers, whichever applies,

in the Form 1116 instructions when you completed

your regular tax Form 1116 (or you would have

qualified for that adjustment exception if you had

completed a regular tax Form 1116) for 2004, and

● Line 44 of Form 8801 is smaller than line 45, and

● Line 32 of Form 8801 is greater than zero.

But you do not need to complete the Worksheet for

Line 17 if:

● Line 32 of Form 8801 is not more than $175,000

($87,500 if married filing separately).

If you do not need to complete the Worksheet for Line

17, enter the amount from line 4 of Form 8801 on line 17

of the MTFTCE Form 1116.

Instructions for MTFTCE Worksheet for Line 17.

Follow these steps to complete, for the MTFTCE, the

Worksheet for Line 17 in the Form 1116 instructions.

1. Enter the amount from Form 8801, line 4, on line 1

of the worksheet.

2. Skip lines 2 and 3 of the worksheet.

3. Enter the amount from Form 8801, line 42, on line

4 of the worksheet.

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

of 0.2857). Enter the result on line 5 of the worksheet.

5. Enter the amount from Form 8801, line 40, on line 6

of the worksheet.

Use Worksheet B if you:

Instructions for Worksheets A and B. When you

complete Worksheet A or Worksheet B, do not use any

foreign source capital gains you elected to include on

line 4g of Form 4952. Use 0.5357 instead of 0.4286 to

complete lines 11, 13, and 15 of Worksheet B and to

complete Steps 4 and 5 of the Line 15 Worksheet for

Worksheet B.

● Cannot use Worksheet A,

● Had 2004 foreign source capital gains and losses in

no more than two separate categories, and

● Did not have any item of unrecaptured section 1250

gain or 28% rate gain or loss.

If you do not 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.

Step 7. 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.

Step 8. Complete Part IV of the first MTFTCE Form

1116 only. Enter the amount from the MTFTCE Form

1116, line 33, on Form 8801, line 12.

6. Multiply line 6 of the worksheet by 0.4643 (instead

of 0.5714). Enter the result on line 7 of the worksheet.

7. Complete lines 8 and 9 of the worksheet as

instructed on the worksheet.

Enter the total of any nonconventional source fuel

credit and qualified electric vehicle credit not allowed

for 2004 solely because of the limitations 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.

Line 20

Line 21

Step 9. 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.

Follow the instructions below and refer to your 2005

income tax return to figure the amount to enter on

line 22.

Form 1040. Subtract from the amount on line 44 the

total of any credits on lines 47 through 55 (not

including any credit for prior year minimum tax). If the

result is zero or less, enter -0-.

Form 1040NR. Subtract from the amount on line 41

the total of any credits on lines 44 through 50 (not

including any credit for prior year minimum tax). If the

result is zero or less, enter -0-.

Form 1041, Schedule G. Subtract the total of any

credits on lines 2a through 2c from the sum of lines 1a

and 1b. If the result is zero or less, enter -0-.

Line 22

Part III—Tax Computation Using

Maximum Capital Gains Rates

If your 2004 taxable income was zero or less, complete

lines 2 through 6 of the 2004 Qualified Dividends and

Capital Gain Tax Worksheet, lines 18 through 22 of the

2004 Schedule D (Form 1041), or lines 2 through 13 of

the 2004 Schedule D Tax Worksheet, whichever

applies, before completing Part III.
Form 8801 (2005) Page 6

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.

any Internal Revenue law. Generally, tax returns and

return information are confidential, as required by

section 6103.

The time needed to complete and file this form will

vary depending on individual circumstances. The

estimated burden for individual taxpayers filing this form

is approved under OMB control number 1545-0074 and

is included in the estimates shown in the instructions for

their individual income tax return. The estimated burden

for all other taxpayers who file this form is shown below.

Estates and trusts. If you figured your 2004 tax using

the Qualified Dividends Tax Worksheet in the Form 1041

instructions, enter the amount from line 4 of that

worksheet on Form 8801, lines 28 and 30; skip Form

8801, line 29; and enter on Form 8801, line 35, the

amount from line 5 of that worksheet.

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

Recordkeeping 2 hr., 4 min.

Learning about the law or the form 1 hr., 48 min.

Preparing the form 1 hr., 36 min.

Copying, assembling, and

sending the form to the IRS 34 min.