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 1994 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 1994, see instructions

4

4

5

Enter $45,000 ($33,750 if single or head of household for 1994, $22,500 if married filing separately

for 1994). Estates and trusts, enter $22,500

5

6

Enter $150,000 ($112,500 if single or head of household for 1994, $75,000 if married filing

separately for 1994). 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 line 10 is $175,000 or less ($87,500 or less if married filing separately for 1994), multiply line

10 by 26% (.26). Otherwise, multiply line 10 by 28% (.28), and subtract $3,500 ($1,750 if married

filing separately for 1994) from the result

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 1994 Form 6251, line 27, or Form 1041, Schedule H, line 38c 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 1996

16 Enter the amount from your 1994 Form 6251, line 28, or Form 1041, Schedule H, 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 1994 minimum tax credit carryforward. Enter the amount from your 1994 Form 8801, line 26 19

Enter the total of your 1994 unallowed orphan drug credit, 1994 unallowed nonconventional

source fuel credit, and 1994 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 1995 regular income tax liability minus allowable credits. See instructions 22

23 Enter the amount from your 1995 Form 6251, line 26, or 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 the

appropriate line of your 1995 tax return. See instructions 25

26 Minimum tax credit carryforward to 1996. Subtract line 25 from line 21. See instructions 26

General Instructions

Section references are to the Internal

Revenue Code.

Purpose of Form

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.

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

Who Should File

The time needed to complete and file

this form will vary depending on

individual circumstances. The estimated

average time is: Recordkeeping, 1 hr.,

33 min.; Learning about the law or the

form, 1 hr., 3 min.; Preparing the form,

1 hr.; Copying, assembling, and

sending the form to the IRS, 17 min.

Form 8801 should be filed by

individuals, estates, and trusts that had:

● An AMT liability in 1994 and

adjustments or preferences (other than

exclusion items) in 1994,

● A minimum tax credit carryforward

from 1994 to 1995, or

● A nonconventional source fuel credit,

an orphan drug credit, or a qualified

electric vehicle credit not allowed for

1994 (see the instructions for line 20).

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.

Cat. No. 10002S

Part II

Part I

Credit For Prior Year Minimum Tax—

Individuals, Estates, and Trusts

Form 8801 (1995)

Paperwork Reduction Act Notice years after 1986. The form is also used

to figure any minimum tax credit

carryforward.
Line 1. Estates and trusts.—Skip lines

1 through 3 of Form 8801. Complete

Parts I and II of another 1994 Form

1041, Schedule H. For Part I of

Schedule H, take into account only

exclusion items (the amounts included

on lines 4a through 4d, 4p, and 4q of

Schedule H) and any other adjustments

related to exclusion items included on

line 6 of Schedule H. On line 7 of

Schedule H, 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 H (see the instructions for

line 3 below for how to figure the

MTCNOLD). On Part II of Schedule H,

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 H is zero

or less, enter zero on line 4 of Form

8801. Otherwise, enter the amount from

line 12 of Schedule H, adjusted for

exclusion items that were allocated to

the beneficiary, on line 4 of Form 8801.

Form 8801 (1995) Page 2

Step 3. Complete Part IV of Form

1116. Enter the refigured credit from

Form 1116, line 32, on Form 8801,

For loss years beginning before 1987, line 12.

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.

Line 20.—Enter the total of your orphan

drug credit, nonconventional source fuel

credit, and qualified electric vehicle

credit not allowed for 1994 solely

because of the limitations under

sections 28(d)(2)(B), 29(b)(6)(B), and

30(b)(3)(B).

To determine the amount of MTCNOL

that may be carried to tax years other

than 1994, apply sections 172(b)(2) and

172(d), with appropriate modifications to

take into account exclusion items.

Line 4.—If your filing status was married

filing separately for 1994 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).

Line 21.—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.

Line 22.—Follow the instructions below

and refer to your 1995 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 44 (not

including any credit for prior year

minimum tax) and any write-in credit on

line 45.

Line 9.—If you are completing this form

for a child who was under age 14 on

January 1, 1995, and at least one of the

child’s parents was alive on December

31, 1994, do not follow the instructions

on the form for line 9. Instead, if line 8 is

equal to or more than line 5, enter zero.

Otherwise, enter the smaller of (a) the

amount by which line 5 exceeds line 8,

or (b) the amount from line 17 of the

worksheet for line 22 of the child’s 1994

Form 6251, refigured to take into

account only exclusion items.

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

14c (depletion), include it as an

exclusion item when figuring the amount

for line 2.

Form 1040NR.—Subtract from the

amount on line 39 the total of any

credits on lines 40 through 42 (not

including any credit for prior year

minimum tax) and any write-in credit on

line 43.

Line 12. Minimum tax foreign tax

credit on exclusion items.—Refigure

your minimum tax foreign tax credit

Form 1041, Schedule G.—Subtract

the total of any credits on lines 2a

through 2c from line 1a.

Line 3. Minimum tax credit net

operating loss deduction

(MTCNOLD).—Your MTCNOLD is the

aggregate of the minimum tax credit net

Step 1. Fill in Part I of Form 1116

using that part of your taxable income

and exclusion items attributable to

sources outside the United States.

Line 25. Minimum tax credit.—Enter

the minimum tax credit on the following

line of your tax return: Form 1040, line

44; Form 1040NR, line 42; Form 1041,

Schedule G, line 2d.

Step 2. Fill in Part III of Form 1116.

However, instead of entering the AMT

foreign tax credit carryover on line 10 of

Form 1116, use the foreign tax credit

carryover, if any, figured on exclusion

items. Enter the amount from line 4 of

your 1995 Form 8801 on line 17 of Form

1116. Enter on line 19 of Form 1116 the

amount from line 11 of your 1995 Form

8801 reduced by the child care credit,

the credit for the elderly or the disabled,

and the mortgage interest credit.

For loss years beginning after 1986,

your MTCNOL is the excess of the

deductions (excluding the MTCNOLD),

over the income used to figure 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).

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.

Line 26. Carryforward of minimum tax

credit.—Keep a record of this amount

because it can be carried forward and

used in future years.

Line 2.—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), charitable contributions of

appreciated property, certain tax-exempt

interest, depletion, and any other

adjustments related to exclusion items.

Combine lines 1 through 7, 13, 14a, and

14c of your 1994 Form 6251. If you

included on line 14n 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.

If line 13 of Form 1116 is greater than

line 20 of Form 1116, keep a record of

the difference between those two lines.

This amount is carried forward and used

to figure your foreign tax credit on

exclusion items next year.

Line 10.—If you filed Form 1040NR for

1994 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.

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, cause a

permanent difference (e.g., the standard

deduction). The minimum tax credit is

allowed only on the AMT attributable to

deferral items.

Printed on recycled paper

operating loss (MTCNOL) carryovers and

carrybacks to 1994. Your MTCNOL is

figured as follows:

using only exclusion items attributable to

sources outside the United States. To do

this, use a separate 1994 Form 1116,

Foreign Tax Credit, for each type of

income and follow the steps below.