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 2003 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 2003, see instructions

4

4

5

Enter: $58,000 if married filing jointly or qualifying widow(er) for 2003; $40,250 if single or head

of household for 2003; or $29,000 if married filing separately for 2003. Estates and trusts, enter

$22,500

5

6

Enter: $150,000 if married filing jointly or qualifying widow(er) for 2003; $112,500 if single or head

of household for 2003; or $75,000 if married filing separately for 2003. 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 2003 you reported capital gain distributions directly on Form 1040, line 13a; you reported

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

16 and 17a of Schedule D (Form 1040) (lines 15a and 16a, column (2), of Schedule D (Form 1041)),

complete Part III of Form 8801 and enter the amount from line 58 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 2003 Form 6251, line 34, or 2003 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 2005

Enter the amount from your 2003 Form 6251, line 35, or 2003 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

2003 minimum tax credit carryforward. Enter the amount from your 2003 Form 8801, line 26

20 Enter the total of your 2003 unallowed nonconventional source fuel credit and 2003 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 2004 regular income tax liability minus allowable credits (see instructions)

23

24 24

Enter the amount from your 2004 Form 6251, line 33, or 2004 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 2004

Form 1040, line 54; Form 1040NR, line 49; or Form 1041, Schedule G, line 2d

26

Minimum tax credit carryforward to 2005. 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 4. Form 8801 (2004)

(99)

 See instructions on pages 3 and 4.

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

2003), multiply line 10 by 26% (.26). Otherwise, multiply line 10 by 28% (.28) and subtract

$3,500 ($1,750 if married filing separately for 2003) from the result.

12

13



2004
Tax Computation Using Maximum Capital Gains Rates

27 Enter the amount from Form 8801, line 10 27

28

Enter the amount from line 26 of your 2003 Schedule D (Form 1040) (line 23 of the

2003 Schedule D (Form 1041)) or line 13 of your 2003 Schedule D Tax Worksheet*

28

29

Enter the amount from line 19 of your 2003 Schedule D (Form 1040),

or line 15d, column (2), of the 2003 Schedule D (Form 1041)

29

30

If you did not complete the 2003 Schedule D Tax Worksheet, enter the amount from

line 28. Otherwise, add lines 28 and 29, and enter the smaller of that result or the

amount from line 10 of your 2003 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 2003), multiply line 32 by 26% (.26).

Otherwise, multiply line 32 by 28% (.28) and subtract $3,500 ($1,750 if married filing separately for 2003) from the

result 

34

Enter:

● $56,800 if married filing jointly or qualifying widow(er) for 2003,

● $28,400 if single or married filing separately for 2003,

● $38,050 if head of household for 2003, or

● $1,900 for an estate or trust

37 Enter the smaller of line 27 or line 28 37

40

38

Form 8801 (2004) Page 2

Part III

41

Enter your qualified 5-year gain, if any, from

your 2003 Schedule D (Form 1040), line 35

(2003 Schedule D (Form 1041), line 32)

42

Enter the smaller of line 38 or line 39. If line 38 is zero, go to line 48

Multiply line 40 by 5% (.05) 

Subtract line 40 from line 38. If zero or less, enter -0- and go to line 48

48

Subtract line 37 from line 31

49

Multiply line 54 by 25% (.25) 

Add lines 33, 41, 45, 47, 51, 53, and 55

39

42

46

53

51

Caution: If you did not complete Part IV of the 2003 Schedule D (Form 1040) (or Part V of the 2003 Schedule

D (Form 1041)) or the 2003 Schedule D Tax Worksheet, see the instructions before completing this part.

If line 29 is zero or blank, skip lines 54 and 55 and go to line 56. Otherwise, go to line 54.

Form 8801 (2004)

Enter the smaller of line 36 or line 37

45 Multiply line 44 by 8% (.08)  45

46 Subtract line 44 from line 42

47 Multiply line 46 by 10% (.10)  47

44

* The 2003 Schedule D Tax Worksheet is on page D-11 of the 2003 Instructions for Schedule D (Form 1040) (page 37 of the 2003 Instructions for Form 1041).

38

50

If line 27 is $175,000 or less ($87,500 or less if married filing separately), multiply line 27 by 26%

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

separately) from the result

Enter the smaller of line 56 or line 57 here and on line 11 58

31

43

41

If you did not complete the 2003 Schedule D Tax Worksheet, enter the amount from

your 2003 Schedule D (Form 1040), line 43 (or 2003 Schedule D (Form 1041), line 40)

(or if that line is blank, the amount from your 2003 Schedule D (Form 1040), line 31 (or

2003 Schedule D (Form 1041), line 28)). Otherwise, enter the amount from line 32 of

the Schedule D Tax Worksheet* (or if that line is blank, the amount from line 20 of that

worksheet).

Enter the smaller of line 42 or line 43

Subtract line 40 from line 39

44

Subtract line 38 from line 37

Enter the smaller of line 48 or line 49

Multiply line 50 by 15% (.15) 

Subtract line 50 from line 49

Multiply line 52 by 20% (.20) 

39

40

43

48

49

50

52

55

54

56

57

51

52

53

54

55

56

58

57

35 Enter the amount from line 27 of your 2003 Schedule D (Form 1040) (line 24 of the

2003 Schedule D (Form 1041)) or line 14 of the 2003 Schedule D Tax Worksheet*,

whichever applies. If you did not complete either Part IV of the 2003 Schedule D

(Form 1040) (or Part V of the 2003 Schedule D (Form 1041)) or the 2003 Schedule

D Tax Worksheet, enter -0- 35

36 Subtract line 35 from line 34. If zero or less, enter -0- 36
Form 8801 (2004) Page 3

To determine the amount of MTCNOL

that may be carried to tax years other

than 2003, apply sections 172(b)(2) and

172(d) with appropriate modifications to

take into account only exclusion items.

If your filing status was married filing

separately for 2003 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).

If this form is for a child who was under

age 14 at the end of 2003 and at least

one of the child’s parents was alive at

the end of 2003, do not enter more than

the sum of the child’s 2003 earned

income plus $5,600. 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.

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

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 2003 Form 6251. Do not include

any amount from line 14 of the 2003

Form 6251. Instead, include the

exclusion item amount from line 12d of

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

received for 2003. If you included on line

26 of the 2003 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

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 2003. Your MTCNOL is

figured as follows.

Line 4

Line 9

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 2003

had:

● An AMT liability and adjustments or

preferences other than exclusion items,

● A minimum tax credit carryforward to

2004, or

Skip lines 1 through 3 of Form 8801.

Complete Parts I and II of another 2003

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 attributable to 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

attributable to 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

If you filed Form 1040NR for 2003 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

The minimum tax foreign tax credit on

exclusion items (MTFTCE) is your 2003

AMT foreign tax credit (AMTFTC)

refigured using only exclusion items.

Follow these steps to figure your

MTFTCE.

1. Use a separate 2003 Form 1116 for

the MTFTCE for each separate limitation

category specified at the top of Form

1116.

A child born on January 1, 1990, is

considered to be age 14 at the end of

2003 and is therefore not subject to this

limitation.

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 2003 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 2003

AMT Form 1116. Otherwise, complete

Part I using only taxable income and

exclusion items that are attributable to

sources outside the United States. If

required by the Instructions for Form

1116 (based on your MTFTCE
Form 8801 (2004) Page 4

Enter the total of any nonconventional

source fuel credit and qualified electric

vehicle credit not allowed for 2003 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.

Follow the instructions below and refer

to your 2004 income tax return to figure

the amount to enter on line 22.

Form 1040. Subtract from the amount

on line 43 the total of any credits on

lines 46 through 54 (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 40 the total of any

credits on lines 43 through 49 (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-.

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 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, 2 hr., 6 min.; Preparing the form,

1 hr., 54 min.; Copying, assembling,

and sending the form to the IRS, 34

min.

Schedule D), complete Worksheet A or

Worksheet B for the MTFTCE. (But, if

required, make adjustments to your

foreign source capital gains and losses

using the instructions in Pub. 514,

Foreign Tax Credit for Individuals,

instead of completing Worksheet A or

Worksheet B.) If you are required to

complete an MTFTCE Worksheet for

Line 17, follow the instructions under

item 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 2003 for the regular tax. Use your

MTFTCE carryover, if any, on line 10.

4. If you did not figure your 2003

AMTFTC using the simplified limitation

election, 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 item 6 below.

Otherwise, follow these steps to

complete, for the MTFTCE, the

Worksheet for Line 17 on page 15 of the

2003 Form 1116 instructions.

a. Enter the amount from Form 8801,

line 4, on line 1 of the MTFTCE

Worksheet for Line 17.

b. Complete the Schedule D Tax

Worksheet (in the 2003 Instructions for

Schedule D (Form 1040) or the 2003

instructions for Form 1041) for the

MTFTCE as follows. Enter the amount

from Form 8801, line 10, on line 1 of the

worksheet and skip lines 22, 26, 28, 36,

38, 44, and 47 through 51. Use the

amounts from Parts I, II, and III of your

2003 regular tax Schedule D (Form

1040) (Parts I through IV of Schedule D

(Form 1041)) to complete the rest of the

MTFTCE Schedule D Tax Worksheet. If

you figured your 2003 tax using the

Qualified Dividends and Capital Gain Tax

Worksheet in the 2003 instructions for

line 41 of Form 1040, complete an

MTFTCE Qualified Dividends and Capital

Gain Tax Worksheet as follows. Enter

the amount from Form 8801, line 10, on

line 1 of the MTFTCE worksheet; enter

the amounts from lines 6, 11, and 19 of

the 2003 regular tax worksheet on the

same lines of the MTFTCE worksheet;

and complete the rest of the MTFTCE

worksheet, skipping lines 2 through 5,

13, 15, 23, and 25 through 29. If you

figured your 2003 tax using the Qualified

Dividends Tax Worksheet in the 2003

instructions for Form 1041, complete an

MTFTCE Qualified Dividends Tax

Worksheet as follows. Enter the amount

from Form 8801, line 10, on line 1 of the

MTFTCE worksheet; enter the amount

from line 4 of the 2003 regular tax

worksheet on the same line of the

MTFTCE worksheet; and complete the

rest of the MTFTCE worksheet, skipping

lines 2, 3, 9, and 13 through 17.

c. Complete the rest of the MTFTCE

Worksheet for Line 17 using the

amounts from the MTFTCE Schedule D

Tax Worksheet, MTFTCE Qualified

Dividends and Capital Gain Tax

Worksheet, or MTFTCE Qualified

Dividends Tax Worksheet, whichever

applies, and the instructions for Form

1116, line 17.

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 33, 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.

Part III—Tax Computation

Using Maximum Capital

Gains Rates

If you did not complete Schedule D

(Form 1040) for 2003 because you

● Enter the amount from line 6 of that

worksheet on Form 8801, lines 28 and

30;

● Skip Form 8801, line 29;

● Enter on Form 8801, line 35, the

amount, if any, from line 7 of that

worksheet; and

If your 2003 taxable income was zero

or less, complete lines 13, 15 through

17b, 19, 22 through 26, 35, and 43 of

your 2003 Schedule D (Form 1040) (lines

19 through 23, 32, and 40 of the 2003

Schedule D (Form 1041)), or lines 2

through 13, 24, and 32 of the 2003

Schedule D Tax Worksheet, if applicable,

before completing Part III.

Estates and trusts. If you figured your

2003 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,

30, and 39; skip Form 8801, line 29; and

enter on Form 8801, line 35, the amount

from line 5 of that worksheet.

● Enter on Form 8801, line 39, the

amount from line 11 of that worksheet (or

if that line is blank, the amount from line

19 of that worksheet).

figured your tax using the Qualified

Dividends and Capital Gain Tax

Worksheet in the instructions for line 41

of Form 1040, then: