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 2002 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 $173,000 and you were married filing separately for 2002, see instructions

4

4

5

Enter: $49,000 if married filing jointly or qualifying widow(er) for 2002; $35,750 if single or head

of household for 2002; or $24,500 if married filing separately for 2002. Estates and trusts, enter

$22,500

5

6

Enter: $150,000 if married filing jointly or qualifying widow(er) for 2002; $112,500 if single or head

of household for 2002; or $75,000 if married filing separately for 2002. 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 2002 you reported capital gain distributions directly on Form 1040, line 13, or had

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

Schedule D (Form 1041)), complete Part III of Form 8801 and enter the amount from line 48

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 2002 Form 6251, line 34, or 2002 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 2004

Enter the amount from your 2002 Form 6251, line 35, or 2002 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

2002 minimum tax credit carryforward. Enter the amount from your 2002 Form 8801, line 26

20 Enter the total of your 2002 unallowed nonconventional source fuel credit and 2002 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 2003 regular income tax liability minus allowable credits (see instructions)

23

24 24

Enter the amount from your 2003 Form 6251, line 33, or 2003 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 2003

Form 1040, line 52; Form 1040NR, line 48; or Form 1041, Schedule G, line 2d

26

Minimum tax credit carryforward to 2004. 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 (2003)

(00)

 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

2002), multiply line 10 by 26% (.26). Otherwise, multiply line 10 by 28% (.28) and subtract

$3,500 ($1,750 if married filing separately for 2002) from the result.

12

13



2003
Tax Computation Using Maximum Capital Gains Rates

27 Enter the amount from line 10 27

28

Enter the amount from line 23 of your 2002 Schedule D (Form 1040)

(line 21 of the 2002 Schedule D (Form 1041)) or line 9 of your 2002

Schedule D Tax Worksheet*

28

29

Enter the amount from line 19 of your 2002 Schedule D (Form 1040),

or line 15d, column (2), of the 2002 Schedule D (Form 1041)

29

30

If you did not complete the 2002 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 4 of your 2002

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 2002), multiply line

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

filing separately for 2002) from the result 

34

Enter the amount from line 28 of your 2002 Schedule D (Form 1040)

(line 26 of the 2002 Schedule D (Form 1041)) or line 16 of your Schedule

D Tax Worksheet.* Enter -0- if you did not complete Part IV of your

2002 Schedule D (Form 1040) (Part V of 2002 Schedule D (Form 1041))

35

37

Enter the smaller of line 27 or line 28 35

38

36

Form 8801 (2003) Page 2

Part III

39

Enter the amount from your 2002 Schedule

D (Form 1040), line 29 (or 2002 Schedule D

(Form 1041), line 27) (if you did not complete

that line, enter -0-)

40

Enter the smaller of line 36 or line 37

41

Multiply line 38 by 8% (.08) 

42

Subtract line 38 from line 36

46

Subtract line 35 from line 31

47

Multiply line 44 by 25% (.25) 

Add lines 33, 39, 41, 43, and 45

38

40

44

46

47

Caution: If you did not complete Schedule D (Form 1040) for 2002 because you reported capital

gain distributions directly on Form 1040, line 13, or your 2002 taxable income was zero or less,

see the instructions before completing this part.

If line 29 is zero or blank, skip lines 44 and 45 and go to line 46.

Form 8801 (2003)

Enter the smaller of line 34 or line 35

43 43

Multiply line 40 by 10% (.10) 

44

Subtract line 36 from line 35

45

Multiply line 42 by 20% (.20) 

45

42

* The 2002 Schedule D Tax Worksheet is on page D-9 of the 2002 Instructions for Schedule D (Form 1040) (page 35 of the 2002 Instructions for Form 1041).

36

48

If line 27 is $175,000 or less ($87,500 or less if married filing separately for 2002), multiply line

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

filing separately for 2002) from the result

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

31

37

39

41

Caution: For a fiscal year taxpayer with a prior tax year that ends in 2003, the amount on line

48 cannot exceed the amount figured under section 55(b)(3) (maximum rate of tax on net capital

gain) or, if applicable, section 301(c) of the Jobs and Growth Tax Relief Reconciliation Act of 2003

(see instructions).
Form 8801 (2003) Page 3

To determine the amount of MTCNOL

that may be carried to tax years other

than 2002, 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 2002 and line 4 is more

than $173,000, you must include an

additional amount on line 4. If line 4 is

$271,000 or more, include an additional

$24,500 on line 4. Otherwise, include

25% of the excess of the amount on line

4 over $173,000. For example, if the

amount on line 4 is $193,000, enter

$198,000 instead—the additional $5,000

is 25% of $20,000 ($193,000 minus

$173,000).

If this form is for a child who was under

age 14 at the end of 2002 and at least

one of the child’s parents was alive at

the end of 2002, do not enter more than

the sum of the child’s 2002 earned

income plus $5,500. Note: 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

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 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 your AMT

adjustments and preferences for:

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 2002 Form 6251. Do not include

any amount from line 14 of the 2002

Form 6251. Instead, include the

exclusion item amount from line 12d of

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

received for 2002. If you included on line

26 of the 2002 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 2002. 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 2002

had:

● An AMT liability and adjustments or

preferences other than exclusion items,

● A minimum tax credit carryforward to

2003, or

Skip lines 1 through 3 of Form 8801.

Complete Parts I and II of another 2002

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 zero 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 2002 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 2002

AMT foreign tax credit (AMTFTC)

refigured using only exclusion items.

Follow these steps to figure your

MTFTCE.

1. Use a separate 2002 Form 1116 for

the MTFTCE for each separate limitation

category specified at the top of Form

1116.

Note: A child born on January 1, 1989,

is considered to be age 14 at the end of

2002, and is therefore not subject to this

limitation.

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 2002 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 2002

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 (2003) Page 4

Enter the total of any nonconventional

source fuel credit and qualified electric

vehicle credit not allowed for 2002 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 2003 income tax return to figure

the amount to enter on line 22.

Form 1040. Subtract from the amount

on line 41 the total of any credits on

lines 44 through 52 (not including any

credit for prior year minimum tax). If the

result is zero or less, enter zero.

Form 1040NR. Subtract from the

amount on line 39 the total of any

credits on lines 42 through 48 (not

including any credit for prior year

minimum tax). If the result is zero or

less, enter zero.

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 zero.

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, 1 hr., 51 min.; Preparing the

form, 1 hr., 39 min.; Copying,

assembling, and sending the form to

the IRS, 16 min.

Schedule D), complete Worksheet A,

Worksheet B, and the Worksheet for line

17 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 Worksheets A and B.) If you

are required to complete an MTFTCE

Worksheet for Line 17, follow 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 2002 for the regular tax. Use your

MTFTCE carryover, if any, on line 10.

4. If you did not figure your 2002

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 6 below.

Otherwise, follow these steps to

complete, for the MTFTCE, the

Worksheet for Line 17 on page 16 of the

2002 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 2002 Instructions for

Schedule D (Form 1040) or the 2002

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 15, 19, 21, 25,

31, and 34 through 37. Use the amounts

from Parts I, II, and III of your 2002

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 reported capital gain distributions

directly on Form 1040, line 13, enter the

amount from Form 1040, line 13, on

lines 2, 4, and 9 of the MTFTCE

Schedule D Tax Worksheet, and enter

zero on lines 3 and 5 through 8 of that

worksheet.

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 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 2002 because you

reported capital gain distributions

directly on Form 1040, line 13, then:

● Enter the amount of your 2002 capital

gain distributions on Form 8801, lines 28

and 30,

● Skip Form 8801, line 29, and

● Enter on Form 8801, line 34, the

amount, if any, from line 7 of the Capital

Gain Tax Worksheet in the instructions

for line 42 of the 2002 Form 1040.

If your 2002 taxable income was zero

or less, complete lines 19 and 21

through 23 of your 2002 Schedule D

(Form 1040) (lines 19 through 21 of the

2002 Schedule D (Form 1041)), or lines

2 through 9 of the 2002 Schedule D Tax

Worksheet, if applicable, before

completing Part III.

For a fiscal year taxpayer with a prior

tax year that ends in 2003, the amount

on line 48 cannot exceed the amount

figured under section 55(b)(3) (maximum

rate of tax on net capital gain) or, if

applicable, section 301(c) of the Jobs

and Growth Tax Relief Reconciliation Act

of 2003. If your computation of the

amount to be entered on line 48 is less

than the amount figured using Part III,

enter the amount you figured on line 48.

Also, enter “See attached” on the dotted

line to the left of the entry space for line

48 and attach a separate sheet showing

how you figured the amount on line 48.