U.S. Individual Income Tax Return

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Instructions for Form 8801

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9:53 - 5-JAN-2009

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2008

Department of the Treasury
Internal Revenue Service

Instructions for Form 8801
Credit for Prior Year Minimum Tax—Individuals, Estates, and Trusts
Section references are to the Internal Revenue Code unless
otherwise noted.

General Instructions
What’s New

• If you owed alternative minimum tax (AMT) for 2007 or any
prior year due to the AMT adjustment for the exercise of
incentive stock options (Form 6251, line 13, for 2007), the
amount of any such tax that you still owed as of October 3,
2008, has been abated. This means that your debt has been
forgiven and you no longer owe this tax. However, you must
reduce the amount of your credit for prior year minimum tax.
See the instructions for line 21.
• If you paid interest and penalties on AMT for 2007 or any
prior year due to the AMT adjustment for the exercise of
incentive stock options, the amount of your prior year minimum
tax that is eligible for the credit is increased for the first 2 tax
years beginning after 2007 by 50% of the total of any such
interest and penalties you paid before October 3, 2008. See
lines 23 and 62.
• The calculation of the tentative refundable credit (Form 8801,
Part IV) has been revised to reflect changes made by the Tax
Extenders and Alternative Minimum Tax Relief Act of 2008.
• The Foreign Earned Income Tax Worksheet on page 2 has
been revised to reflect changes made by the Tax Technical
Corrections Act of 2007.

Purpose of Form
Use Form 8801 if you are an individual, estate, or trust to figure
the current year nonrefundable credit, if any, for alternative
minimum tax (AMT) you incurred in prior tax years; to figure the
current year refundable credit (individuals only), if any, for any
unused credit carryforward from 2005; and to figure any credit
carryforward to 2009.

Who Should File
Complete Form 8801 if you are an individual, estate, or trust
that for 2007 had:
• An AMT liability and adjustments or preferences other than
exclusion items,
• A credit carryforward to 2008 (on 2007 Form 8801, line 28),
or
• An unallowed qualified electric vehicle credit (see the
instructions for line 20).
File Form 8801 only if line 24 is more than zero.

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.

Part I—Net Minimum Tax on Exclusion
Items
Line 1—Estates and Trusts
Skip lines 1 through 3 of Form 8801. To figure the amount to
enter on line 4 of Form 8801, complete Parts I and II of another
2007 Form 1041, Schedule I, as a worksheet. 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 below 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.
Note. If you complete Parts I and II of a 2007 Form 1041,
Schedule I, as a worksheet to figure the amount to enter on
2008 Form 8801, line 4, do not attach that worksheet
Schedule I to your tax return. Instead, keep it for your
records.

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 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 2007 Form 6251. Do not include
any amount from line 14 of the 2007 Form 6251. Instead,
include the exclusion item amount from the Schedule(s) K-1
(Form 1041) you received for 2007. That amount is shown in
box 12 with code J. If you included on line 26 of the 2007 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.
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 minimum tax credit net operating loss deduction
(MTCNOLD) is the total of the minimum tax credit net operating
loss (MTCNOL) carryovers and carrybacks to 2007. Your
MTCNOL is figured as follows.
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.
To determine the amount of MTCNOL that may be carried to
tax years other than 2007, apply sections 172(b)(2) and 172(d)
with appropriate modifications to take into account only
exclusion items.

Cat. No. 10600C

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Instructions for Form 8801

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Line 4

Step 1. Use a separate 2007 Form 1116 for the MTFTCE for
each separate category of income specified at the top of Form
1116.

If your filing status was married filing separately for 2007 and
line 4 is more than $207,500, you must include an additional
amount on line 4. If line 4 is $340,000 or more, include an
additional $33,125 on line 4. Otherwise, include 25% of the
excess of the amount on line 4 over $207,500. For example, if
the amount on line 4 is $227,500, enter $232,500 instead — the
additional $5,000 is 25% of $20,000 ($227,500 minus
$207,500).

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 2007 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
2007 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 2007 foreign
source qualified dividends or foreign source capital gains
(including any foreign source capital gain distributions) or
losses, use the instructions under Step 3 to determine whether
you must make adjustments to those amounts before you
include the amounts on line 1a or line 5 of the MTFTCE Form
1116.
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 1a 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 1a of the MTFTCE Form 1116 if:
• Line 49 of Form 8801 is smaller than line 50, and
• Line 37 of Form 8801 is greater than zero.

Line 9
If this form is for a child who was under age 18 at the end of
2007, did not file a joint return for 2007, and at least one of the
child’s parents was alive at the end of 2007, do not enter more
than the sum of the child’s 2007 earned income plus $6,300.
A child born on January 1, 1990, is considered to be age 18
at the end of 2007 and is therefore not subject to this limitation.

Line 10
If you filed Form 1040NR for 2007 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 11
If for 2007 you claimed the foreign earned income exclusion or
the housing exclusion on Form 2555 or Form 2555-EZ, you
must use the worksheet below to figure the amount to enter on
line 11.
Form 1040NR. If for 2007 you filed Form 1040NR and you
reported capital gain distributions directly on Form 1040NR, line
14; you reported qualified dividends on Form 1040NR, line 10b;
or you had a gain on both lines 15 and 16 of Schedule D (Form
1040), complete Part III on page 3 of Form 8801 and enter the
amount from line 51 on line 11. Otherwise, do not complete Part
III. Instead, if Form 8801, line 10, is $175,000 or less ($87,500
or less if you checked filing status box 3, 4, or 5 on Form
1040NR for 2007), figure the amount to enter on line 11 by
multiplying line 10 by 26% (.26). Otherwise, figure the amount
to enter on line 11 by multiplying line 10 by 28% (.28) and
subtracting $3,500 ($1,750 if you checked filing status box 3, 4,
or 5 for 2007) from the result.

But you do not need to make any adjustments 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 2007, and
• Line 37 of Form 8801 is not more than $175,000 ($87,500 if
married filing separately for 2007).
To adjust your foreign source qualified dividends, multiply
your foreign source qualified dividends in each separate
category by 0.5357 (instead of 0.4286) if the foreign source
qualified dividends are taxed at a rate of 15%. To adjust foreign
source qualified dividends that are taxed at a rate of 5%,
multiply those foreign source qualified dividends in each
separate category by 0.1786 (instead of 0.1429). Include the
results on line 1a 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.

Line 12
If you made an election to claim the foreign tax credit on your
2007 Form 1040 (or Form 1040NR) without filing Form 1116,
enter on Form 8801, line 12, the amount from your 2007 Form
1040, line 51 (or Form 1040NR, line 46). Otherwise, the
minimum tax foreign tax credit on exclusion items (MTFTCE) is
your 2007 AMT foreign tax credit (AMTFTC) refigured using
only exclusion items. Follow these steps to figure your
MTFTCE.

Foreign Earned Income Tax Worksheet —Line 11
Before you begin:

⻫

Keep for Your Records

If Form 8801, line 10, is zero, do not complete this worksheet.

1. Enter the amount from Form 8801, line 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2. Enter the amount from your (and your spouse’s if filing jointly) 2007 Form 2555, line 45, or 2007 Form 2555-EZ, line
18 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3. Add lines 1 and 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4. Tax on the amount on line 3.
• If for 2007 you reported capital gain distributions directly on Form 1040, line 13; or you reported qualified
dividends on Form 1040, line 9b; or you had a gain on both lines 15 and 16 of Schedule D (Form 1040), enter
the amount from line 3 of this worksheet on Form 8801, line 32. Complete the rest of Part III of Form 8801.
However, before completing Part III, see Forms 2555 and 2555-EZ, on page 4, to see if you must complete
Part III with certain modifications. Then enter the amount from Form 8801, line 51, here.
• All others: If line 3 is $175,000 or less ($87,500 or less if married filing separately for 2007), multiply line 3
by 26% (.26). Otherwise, multiply line 3 by 28% (.28) and subtract $3,500 ($1,750 if married filing separately
for 2007) from the result.
5. Tax on the amount on line 2. If line 2 is $175,000 or less ($87,500 or less if married filing separately for 2007),
multiply line 2 by 26% (.26). Otherwise, multiply line 2 by 28% (.28) and subtract $3,500 ($1,750 if married filing
separately for 2007) from the result. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6. Subtract line 5 from line 4. Enter the result here and on Form 8801, line 11. . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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Instructions for Form 8801

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• 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 2007, and
• Line 37 of Form 8801 is not more than $175,000 ($87,500 if
married filing separately for 2007).

Individuals with capital gain distributions only. If you
had no 2007 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 1a 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 (instead of 0.4286) if the foreign
source capital gain distributions are taxed at a rate of 15%. To
adjust foreign source capital gain distributions that are taxed at
a rate of 5%, multiply those foreign source capital gain
distributions in each separate category by 0.1786 (instead of
0.1429). Include the results on line 1a 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.
Other capital gains or losses. Use Worksheet A in the
instructions for the 2007 Form 1116 to determine the
adjustments you must make to your foreign source capital gains
or losses if you have foreign source capital gains or losses in no
more than two separate categories and any of the following
apply.
• You figured your 2007 tax using the Qualified Dividends and
Capital Gain Tax Worksheet in the Form 1040 (or Form
1040NR) 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.
• Line 15 or 16 of your 2007 Schedule D (Form 1040) (line 14a
or 15 of Schedule D (Form 1041)) is zero or a loss.
• You figured your 2007 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 2007 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 earlier (or
you would not have been required to make those adjustments if
you had foreign source qualified dividends).
Use Worksheet B if you:
• Cannot use Worksheet A,
• Had 2007 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.
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 lines 8, 11, and 17 of
the Line 15 Worksheet for Worksheet B.
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 4. Complete lines 9 through 13 of the MTFTCE Form
1116. For line 9, use the same amount you entered on that line
for 2007 for the regular tax. Use your MTFTCE carryover, if
any, on line 10.
Step 5. If you did not figure your 2007 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:
• Line 49 of Form 8801 is smaller than line 50, and
• Line 37 of Form 8801 is greater than zero.
But you do not need to complete the Worksheet for Line 17
if:

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 47, 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 45, on line 6 of
the worksheet.
6. Multiply line 6 of the worksheet by 0.4643 (instead of
0.5714). Enter the result on line 7 of the worksheet.
7. Enter the amount from Form 8801, line 43, on line 8 of
the worksheet.
8. Multiply line 8 of the worksheet by 0.8214 (instead of
0.8571). Enter the result on line 9 of the worksheet.
9. Complete lines 10 and 11 of the worksheet as instructed
on the worksheet.
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 that MTFTCE Form 1116, line 29, on
Form 8801, line 12.
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.

Part II—Current Year Nonrefundable and
Refundable Credits and Carryforward to
2009
Line 20
Enter any qualified electric vehicle credit not allowed for 2007
solely because of the limitation under section 30(b)(3)(B).

Line 21
If, as of October 3, 2008, you had any unpaid AMT from 2007
or any prior year attributable to the exercise of incentive stock
options, that tax is abated. You should receive a Letter 2719C
from the IRS detailing the amount of tax, interest, and penalties
abated. Enter, as a negative amount on line 21, only the
amount of any tax that was abated; do not enter the amount of
any interest or penalties abated.
If you qualified for an abatement of unpaid AMT in more than
one year, you should receive a separate Letter 2719C for each
year. Add the amounts of tax abated on all Letters 2719C that
you receive, and enter the total on line 21 as a negative
amount.
If you have any questions, call the IRS at the number and
during the hours shown in the Letter 2719C. If you believe you
qualify for the abatement of unpaid AMT but did not receive a
Letter 2719C, call the phone number shown on page 86 of the
2008 Form 1040 instructions or page 31 of the 2008 Form
1040NR instructions, whichever applies, for assistance.

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Instructions for Form 8801

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Line 24

1. Reduce the amount on line 3 of your 2007 Qualified
Dividends and Capital Gain Tax Worksheet or line 9 of your
2007 Schedule D Tax Worksheet (but not below zero) by your
capital gain excess.
2. Reduce the amount on your 2007 Form 1040, line 9b,
(but not below zero) by any of your capital gain excess not used
in (1).
3. Reduce the amount on your 2007 Schedule D (Form
1040), line 18, (but not below zero) by your capital gain excess.
4. Include your capital gain excess as a loss on line 16 of
your 2007 Unrecaptured Section 1250 Gain Worksheet on page
D-9 of the 2007 Instructions for Schedule D (Form 1040).

If line 24 is zero or less, you do not have a nonrefundable or
refundable credit or a credit carryforward. Do not complete the
rest of this form and do not file it.

Line 25
Follow the instructions below and refer to your 2008 income tax
return to figure the amount to enter on line 25.
Form 1040. Subtract from the amount on line 44 the total of
any credits on lines 47 through 54 (not including any credit for
prior year minimum tax or any credit claimed on Form 8912).
Enter the result. 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 49 (not including any credit
for prior year minimum tax or any credit claimed on Form 8912).
Enter the result. 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. Enter the
result. If the result is zero or less, enter -0-.

Line 38
If for 2007 you filed Form 1040NR and Form 8801, line 37, is
$175,000 or less ($87,500 or less if you checked filing status
box 3, 4, or 5 on Form 1040NR for 2007), multiply line 37 by
26% (.26). Otherwise, multiply line 37 by 28% (.28) and subtract
$3,500 ($1,750 if you checked filing status box 3, 4, or 5 on
Form 1040NR for 2007) from the result.

Part III—Tax Computation Using
Maximum Capital Gains Rates

Line 39
If for 2007 you filed Form 1040NR, enter $31,850 ($63,700 if
you checked filing status box 6 on Form 1040NR for 2007).

If your 2007 taxable income was zero or less, enter -0- on Form
8801, line 40. You also must take one of the following actions,
whichever applies to you, before completing lines 33, 34, and
35 of Part III.
• Complete lines 2 through 6 of the Qualified Dividends and
Capital Gain Tax Worksheet on page 35 of the 2007
Instructions for Form 1040.
• Complete lines 2 through 4 of the Qualified Dividends and
Capital Gain Tax Worksheet on page 19 of the 2007
Instructions for Form 1040NR.
• Complete lines 2 through 13 of the Schedule D Tax
Worksheet on page D-10 of the 2007 Instructions for Schedule
D (Form 1040) or page 43 of the 2007 Instructions for Form
1041, whichever applies.
• Complete lines 2 through 4 of the Qualified Dividends Tax
Worksheet on page 26 of the 2007 Instructions for Form 1041.
• Complete lines 18 through 22 of the 2007 Schedule D (Form
1041).
To determine which worksheet above applies to you, see the
2007 instructions for Form 1040, line 44; Form 1040NR, line 41;
or Form 1041, Schedule G, line 1a.

Line 40
If for 2007 you filed Form 1040NR, enter on Form 8801, line
40, the amount from line 5 of your 2007 Qualified Dividends and
Capital Gain Tax Worksheet in the instructions for Form
1040NR, line 41, or the amount from line 14 of your 2007
Schedule D Tax Worksheet on page D-10 of the 2007
Instructions for Schedule D (Form 1040), whichever applies. If
you did not complete either worksheet, enter -0-.

Line 50
If for 2007 you filed Form 1040NR and Form 8801, line 32, is
$175,000 or less ($87,500 or less if you checked filing status
box 3, 4, or 5 on Form 1040NR for 2007), multiply line 32 by
26% (.26). Otherwise, multiply line 32 by 28% (.28) and subtract
$3,500 ($1,750 if you checked filing status box 3, 4, or 5 on
Form 1040NR for 2007) from the result.
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.
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.

Lines 33, 34, and 35
Follow the instructions below to figure the amounts to enter on
lines 33, 34, and 35 if, for 2007:
1. You filed Form 1040NR and did not use the Schedule D
Tax Worksheet to figure your tax,
2. You filed Form 1041 and did not use the Schedule D Tax
Worksheet or Part V of Schedule D (Form 1041) to figure your
tax, or
3. You filed Form 2555 or 2555-EZ and have a capital gain
excess (defined later).
Otherwise, complete lines 33, 34, and 35 following the
instructions for those lines on the form.
Form 1040NR. If (1) above applies, enter the amount from line
4 of the Qualified Dividends and Capital Gain Tax Worksheet in
the 2007 Form 1040NR instructions on Form 8801, lines 33 and
35; skip Form 8801, line 34; and enter on Form 8801, line 40,
the amount from line 5 of that worksheet.
Estates and trusts. If (2) above applies, enter the amount
from line 4 of the Qualified Dividends Tax Worksheet in the
2007 Form 1041 instructions on Form 8801, lines 33 and 35;
skip Form 8801, line 34; and enter on Form 8801, line 40, the
amount from line 5 of that worksheet.
Forms 2555 and 2555-EZ. If you filed either of these forms for
2007 and you have a capital gain excess, you must complete
Part III of Form 8801 with certain modifications. To see if you
have a capital gain excess, subtract Form 8801, line 10, from
line 6 of your 2007 Qualified Dividends and Capital Gain Tax
Worksheet (or line 10 of your 2007 Schedule D Tax
Worksheet). If the result is more than zero, that amount is your
capital gain excess.
If you have a capital gain excess, figure the amounts to enter
on lines 33, 34, and 35 of Form 8801 using the following
modifications (only for purposes of Part III of Form 8801).

Recordkeeping . . . . . . . . . . . . . . . . . . .
Learning about the law or the form . . . .
Preparing the form . . . . . . . . . . . . . . . .
Copying, assembling, and sending the
form to the IRS . . . . . . . . . . . . . . . . .

.
.
.

2 hr., 4
1 hr., 57
2 hr., 3
48

min.
min.
min.
min.

.

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.

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