Form Schedule K-1 (Form Schedule K-1 (Form Beneficiary's Share of Income, Deductions, Credits, etc.

Version A, Cycle 4

661109
Final K-1

Schedule K-1
(Form 1041)

Part III

2009

Department of the Treasury
Internal Revenue Service

For calendar year 2009,
or tax year beginning,
and ending

Amended K-1

OMB No. 1545-0092

Beneficiary’s Share of Current Year Income,
Deductions, Credits, and Other Items

1

Interest income

2a

Ordinary dividends

2b

Qualified dividends

11

Final year deductions

12

Alternative minimum tax adjustment

13

Credits and credit recapture

14

Other information

, 2009,
, 20

Beneficiary’s Share of Income, Deductions,
See back of form and instructions.
Credits, etc.
©

Part I

Estate’s or trust’s employer identification number

B

Estate’s or trust’s name

D

Net short-term capital gain

4a

Net long-term capital gain

4b

28% rate gain

4c

Unrecaptured section 1250 gain

5

Other portfolio and
nonbusiness income

6

Ordinary business income

7

Net rental real estate income

8

Other rental income

9

Directly apportioned deductions

Information About the Estate or Trust

A

C

3

DRAFT AS OF
October 6, 2009

Fiduciary's name, address, city, state, and ZIP code

Check if Form 1041-T was filed and enter the date it was filed

E

Check if this is the final Form 1041 for the estate or trust
10

Part II

Estate tax deduction

Information About the Beneficiary

F

Beneficiary's identifying number

G

Beneficiary's name, address, city, state, and ZIP code

H

Domestic beneficiary

Foreign beneficiary

For Paperwork Reduction Act Notice, see the Instructions for Form 1041.

For IRS Use Only

*See attached statement for additional information.
Note. A statement must be attached showing the
beneficiary’s share of income and directly apportioned
deductions from each business, rental real estate, and
other rental activity.

Cat. No. 11380D

Schedule K-1 (Form 1041) 2009

Version A, Cycle 4

Other qualifying investment credit
Schedule K-1 (Form 1041) 2009

Rehabilitation credit and energy credit

This list identifies the codes used on Schedule K-1 for
beneficiaries and provides summarized reporting information for
beneficiaries who file Form 1040. For detailed reporting and filing
information, see the Instructions for Beneficiary Filing Form 1040
and the instructions for your income tax return.
Report on

Page 2
12. Alternative minimum tax (AMT) items
Code
B AMT adjustment attributable to
qualified dividends
C AMT adjustment attributable to
net short-term capital gain

1. Interest income

Form 1040, line 8a

2a. Ordinary dividends

Form 1040, line 9a

2b. Qualified dividends

Form 1040, line 9b

3. Net short-term capital gain

Schedule D, line 5

4a. Net long-term capital gain

Schedule D, line 12

E AMT adjustment attributable to
unrecaptured section 1250 gain

4b. 28% rate gain

Line 4 of the worksheet for
Schedule D, line 18

F AMT adjustment attributable to
28% rate gain

D AMT adjustment attributable to
net long-term capital gain

%

Form 6251, line 16

See the beneficiary’s
instructions and the
Instructions for Form 6251

DRAFT AS OF
October 6, 2009

4c. Unrecaptured section 1250 gain

Line 11 of the worksheet for
Schedule D, line 19

5. Other portfolio and nonbusiness
income

Schedule E, line 33, column (f)

6. Ordinary business income

7. Net rental real estate income
8. Other rental income

Report on

A Adjustment for minimum tax purposes

G Accelerated depreciation
H Depletion

I Amortization

J Exclusion items

Schedule E, line 33, column (d)
or (f)
Schedule E, line 33, column (d)
or (f)
Schedule E, line 33, column (d)
or (f)

9. Directly apportioned deductions

2010 Form 8801

13. Credits and credit recapture
A Credit for estimated taxes

Form 1040, line 62

B Credit for backup withholding

Form 1040, line 61

C Low-income housing credit

Form 8586 (also see the
beneficiary’s instructions)

D Qualified rehabilitation expenditures

See the beneficiary’s instructions

E Basis of other investment credit property

See the beneficiary’s instructions

Code

F Work opportunity credit

Form 5884, line 3

A Depreciation

Form 8582 or Schedule E, line
33, column (c) or (e)

G Welfare-to-work credit

Form 3800, line 1b

B Depletion

Form 8582 or Schedule E, line
33, column (c) or (e)

H Alcohol and cellulosic biofuel fuels
credit

Form 6478, line 7 (also see the
beneficiary’s instructions)

I Credit for increasing research activities

Form 3800, line 1c

Form 8582 or Schedule E, line
33, column (c) or (e)

J Renewable electricity, refined coal,
and Indian coal production credit

See the beneficiary’s instructions

Schedule A, line 28

K Empowerment zone and renewal
community employment credit

Form 8844, line 3

C Amortization
10. Estate tax deduction
11. Final year deductions
A Excess deductions

Schedule A, line 23

L Indian employment credit

Form 3800, line 1g

B Short-term capital loss carryover

Schedule D, line 5

M Orphan drug credit

Form 3800, line 1h

C Long-term capital loss carryover

Schedule D, line 12; line 5 of the
wksht. for Sch. D, line 18; and
line 16 of the wksht. for Sch. D,
line 19

N Credit for employer-provided child
care and facilities

Form 3800, line 1k

D Net operating loss carryover —
regular tax

Form 1040, line 21

O Biodiesel and renewable diesel fuels
credit

Form 8864, line 9 (also see the
beneficiary’s instructions)

P Nonconventional source fuel credit

Form 3800, line 1o

E Net operating loss carryover —
minimum tax

Form 6251, line 12

Q Credit to holders of tax credit bonds

Form 8912, line 8

R Agricultural chemicals security credit

Form 3800, line 1v

S Energy efficient appliance credit

Form 3800, line 1q

T Credit for employer differential wage
payments

Form 3800, line 1w

U Recapture of credits

See the beneficiary’s instructions

14. Other information
A Tax-exempt interest

Form 1040, line 8b

B Foreign taxes

Form 1040, line 47 or
Sch. A, line 8

C Qualified production activities income

Form 8903, line 7

D Form W-2 wages

Form 8903, line 15

E Net investment income

Form 4952, line 4a

F Gross farm and fishing income

Schedule E, line 42

G Foreign trading gross receipts
(IRC 942(a))

See the Instructions for
Form 8873

H Other information

See the beneficiary’s instructions

Note. If you are a beneficiary who does not file a Form 1040,
see instructions for the type of income tax return you are filing.

Version A, Cycle 4

Page 3

Schedule K-1 (Form 1041) 2009

Instructions for Beneficiary Filing Form 1040
Note. The fiduciary’s instructions for completing
Schedule K-1 are in the Instructions for Form 1041.

General Instructions
Purpose of Form
Use Schedule K-1 to report your share of the estate’s or trust’s
income, credits, deductions, etc. Keep it for your records. Do
not file it with your tax return. A copy has been filed with the
IRS.

Part III—Beneficiary’s Share of Current Year
Income, Deductions, Credits, and Other
Items
The amounts shown in boxes 1 through 14 reflect your share of
income, loss, deductions, credits, etc., from an estate or trust.
For Form 1040 filers, page 2 of Schedule K-1 provides
summarized reporting information. The summarized reporting
information reflects references to forms in use for calendar year
2009.

DRAFT AS OF
October 6, 2009

Inconsistent Treatment of Items

Generally, you must report items shown on your Schedule K-1
(and any attached schedules) the same way that the estate or
trust treated the items on its return.

If the treatment on your original or amended return is
inconsistent with the estate’s or trust’s treatment, or if the
estate or trust was required to but has not filed a return, you
must file Form 8082, Notice of Inconsistent Treatment or
Administrative Adjustment Request (AAR), with your original or
amended return to identify and explain any inconsistency (or to
note that an estate or trust return has not been filed).

If you are required to file Form 8082 but fail to do so, you
may be subject to the accuracy-related penalty. This penalty is
in addition to any tax that results from making your amount or
treatment of the item consistent with that shown on the estate’s
or trust’s return. Any deficiency that results from making the
amounts consistent may be assessed immediately.

Errors
If you believe the fiduciary has made an error on your Schedule
K-1, notify the fiduciary and ask for an amended or a corrected
Schedule K-1. Do not change any items on your copy. Be sure
that the fiduciary sends a copy of the amended Schedule K-1 to
the IRS. If you are unable to reach an agreement with the
fiduciary regarding the inconsistency, you must file Form 8082.

Beneficiaries of Generation-Skipping Trusts
If you received Form 706-GS(D-1), Notification of Distribution
From a Generation-Skipping Trust, and paid a generationskipping transfer (GST) tax on Form 706-GS(D), GenerationSkipping Transfer Tax Return for Distributions, you can deduct
the GST tax paid on income distributions on Schedule A (Form
1040), line 8. To figure the deduction, see the Instructions for
Form 706-GS(D).

Specific Instructions
Part I—Information About the Estate or Trust
Item E
If the item E box is checked, this is the final year of the estate
or trust.
Note. If the “Final K-1” box at the top of Schedule K-1 is
checked, this is the final return for the beneficiary.

If you are not an individual, report the amounts in each box
as instructed on your tax return.
Codes. In box 9 and boxes 11 through 14, the fiduciary will
identify each item by entering a code in the column to the left of
the dollar amount entry space. These codes are identified on
page 2 of Schedule K-1.
Attached statements. The fiduciary will enter an asterisk (*)
after the code, if any, in the column to the left of the dollar
amount entry space for each item for which it has attached a
statement providing additional information. For those
informational items that cannot be reported as a single dollar
amount, the estate or trust will enter an asterisk in the left
column and write “STMT” in the dollar amount entry space to
indicate the information is provided on an attached statement.

Boxes 3 and 4a—Net Short-Term and Net Long-Term
Capital Gain
If there is an attachment to this Schedule K-1 reporting a
disposition of a passive activity, see the Instructions for Form
8582, Passive Activity Loss Limitations, for information on the
treatment of dispositions of interests in a passive activity.

Box 5—Other Portfolio and Nonbusiness Income
The amount reported in this box is your distributive share of
royalties, annuities, and other income that is not subject to the
passive activity rules. It also includes income in respect of a
decedent (IRD), which is not included in boxes 1, 2a, 3, 4a, 6, 7,
or 8.

Boxes 6 through 8—Ordinary Business Income, Net
Rental Real Estate Income, and Other Rental Income
The deductions in boxes 6 through 8 may be subject to the
passive loss limitations of Internal Revenue Code section 469,
which generally limits deductions from passive activities to the
income from those activities. The fiduciary will provide you with
a separate schedule showing your distributive share of income
from each trade or business, net rental real estate, or other
rental activity. The rules for applying these limitations to
beneficiaries have not yet been issued. For more details, see
Pub. 925, Passive Activity and At-Risk Rules.

the information you will
need
Schedule K-1 (Form 1041) 2009

Box 9—Directly Apportioned Deductions
The fiduciary must attach a statement showing depreciation,
depletion, and amortization directly apportioned to you, if any,
for each activity reported in boxes 5 through 8.

Box 12—Alternative Minimum Tax Items
The information reported in box 12, codes A through I is used
to prepare your Form 6251, Alternative Minimum Tax—
Individuals. Code A, Adjustment for minimum tax purposes, is
the total amount reported on Form 6251, line 16. Codes B
through F represent the portion, if any, of the amount included
in code A.
Codes B through F. If you have an amount in box 12 with code
B, C, D, E, or F, see the instructions for lines 38, 39, and 40 of
Form 6251.

Other qualifying

qualified investment

Version
A, Cycle
so that you can
figure
the 4
amount of the previously
listed credits that you may
Page 4
claim

Code E. Basis of other investment credit property. This code
is used to report the basis of property for figuring the qualifying
advanced coal project credit, the qualifying gasification project
credit, and the qualifying advanced energy project credit. The
fiduciary must provide you with a statement that shows the
amount of basis and where to report it on Form 3468. If your
statement includes an amount to be reported on line 11f, 11i, or
11l, then the statement must also provide additional information
to report on the subsequent line of Form 3468.
Code H. Alcohol and cellulosic biofuel fuels credit. If this
credit includes the small ethanol producer credit, the fiduciary
will provide additional information on an attached statement. If a
statement is attached, see the instructions for line 15 of Form
6478, Alcohol and Cellulosic Biofuel Fuels Credit.

DRAFT AS OF
October 6, 2009

Codes G through I. Include the amount with any of these
codes on the applicable line of Form 6251.

Code J. Exclusion items. If you pay alternative minimum tax in
2009, the amount in box 12, code J will help you figure any
minimum tax credit for 2010. See the 2010 Form 8801, Credit
for Prior Year Minimum Tax—Individuals, Estates, and Trusts,
for more information.

Box 13—Credits and Credit Recapture

Codes A through T list all the credits that may be allocated to
you as a beneficiary. The corresponding line shows you what
form to use when reporting the amount.

If no statement is attached, report this amount on Form 6478,
line 7.
Code J. Renewable electricity, refined coal, and Indian coal
production credit. Complete Form 8835, Renewable
Electricity, Refined Coal, and Indian Coal Production Credit, to
figure the amount of your credit. The fiduciary must provide a
statement showing the amount of credit to report on line 9 in
Part I, and how much to report on line 29 in Part II of Form 8835.
Code O. Biodiesel and renewable diesel fuels credit. If this
credit includes the small agri-biodiesel producer credit, the
fiduciary will provide additional information on an attached
statement. If no statement is attached, report this amount on
line 11 of Form 8864, Biodiesel and Renewable Diesel Fuels
Credit. If a statement is attached, see the instructions for Form
8864, line 11.
9

Code A. Credit for estimated taxes. The beneficiary treats this
amount as a payment of estimated tax. To figure any
Code U. Recapture of credits. If you are required to recapture
underpayment and penalty on Form 2210, Underpayment of
any credits, the fiduciary will provide a statement with the
Estimated Tax by Individuals, Estates, and Trusts, treat the
information you need to figure your credit recapture.
amount entered on box 13, code A, as an estimated tax
payment made on January 15, 2010. cap R
Box 14—Other Information
credit and energy credit
Note. Form 1041-T, Allocation of Estimated Tax Payments to
Beneficiaries, must be timely filed by the fiduciary for the
beneficiary to get the credit for an estimated tax payment.
Code C. Low-income housing credit. The fiduciary will
provide you with a statement showing the amount to report on
line 4 and 11 of Form 8586, Low-Income Housing Credit. If you
only have an amount to report on line 4 of Form 8586 and your
only source for the credit is a pass-through entity, such as an
estate or trust, then you can report the amount on line 1d of
Form 3800, General Business Credit, and you do not have to
complete Form 8586.
Code D. Qualified rehabilitation expenditures. The fiduciary
must provide you with a statement that shows the amount of
any qualified rehabilitation expenditures and which line on Form
3468, Investment Credit, to report those expenditures.
information you will need and where to enter it on Form
3468, Investment Credit, so that you can figure the
amount of any rehabilitation credit and energy credit
that you may claim.

Code F. Gross farming and fishing income. The amount of
farming and fishing income is included in box 6. This income is
separately stated to help you determine if you are subject to a
penalty for underpayment of estimated tax. Report the amount
of gross farming and fishing income on Schedule E (Form 1040),
line 42.
Code H. Other income. If this code is used, the fiduciary will
provide you with any additional information you may need to
file your return that is not shown elsewhere on this Schedule
K-1.