2017 Instructions for Form 1041, Schedule I

2017

Instructions for Schedule I
(Form 1041)

Department of the Treasury
Internal Revenue Service

Alternative Minimum Tax—Estates and Trusts
Section references are to the Internal Revenue
Code unless otherwise noted.

Future Developments

For the latest information about
developments related to Schedule I and
its instructions, such as legislation
enacted after they were published, go to
IRS.gov/Form1041.

What's New
AMT tax brackets. The threshold for
the 28% AMT tax bracket increased to
amounts over $187,800.
AMT exemption amount and phaseout. The AMT exemption amount
increased to $24,100. The exemption
amount begins to be phased-out at
amounts over $80,450 and is
completely phased-out at $176,850.
Capital gains and qualified dividends. For tax year 2017, the 20%
maximum capital gains rate applies to
estates and trusts with income above
$12,500. The 0% and 15% rates
continue to apply to certain threshold
amounts. The 0% rate applies to
amounts up to $2,550. The 15% rate
applies to amounts over $2,550 and up
to $12,500.

General Instructions
Purpose of Schedule

Use Schedule I (Form 1041) to figure:
The estate's or trust's alternative
minimum taxable income;
The income distribution deduction on
a minimum tax basis; and
The estate's or trust's alternative
minimum tax (AMT).

Who Must Complete
Schedule I (Form 1041)

Complete Parts I and II if the estate or
trust is required to complete Form 1041,
Schedule B, Income Distribution
Deduction.
Complete Schedule I if the estate's or
trust's share of alternative minimum
taxable income (Part I, line 29) exceeds
$24,100.

Jan 22, 2018

Complete Schedule I if the estate or
trust claims any general business credit
and line 6 of Part I or line 3 of Part III of
Form 3800, General Business Credit, is
more than zero.

Recordkeeping

Schedule I contains adjustments and
tax preference items that are treated
differently for regular tax and AMT
purposes. If you, as fiduciary for the
estate or trust, completed a form to
figure an item for regular tax purposes,
you may have to complete it a second
time for AMT purposes. Generally, the
difference between the amounts on the
two forms is the AMT adjustment or tax
preference item to enter on Schedule I.
Except for Form 1116, Foreign Tax
Credit (Individual, Estate, or Trust), any
additional form completed for AMT
purposes doesn't have to be filed with
Form 1041.
For regular tax purposes, some
deductions and credits may result in
carrybacks or carryforwards to other tax
years. Examples are investment interest
expense, a net operating loss deduction
(NOLD), a capital loss, and the foreign
tax credit. Because these items may be
refigured for the AMT, the carryback or
carryforward amount may be different
for regular and AMT purposes.
Therefore, you should keep records of
these different carryforward and
carryback amounts for the AMT and
regular tax. The AMT carryforward will
be important in completing Schedule I
for 2018.

Credit for Prior Year Minimum
Tax

Estates and trusts that paid AMT in
2016, or had a minimum tax credit
carryforward from the 2016 Form 8801,
Credit for Prior Year Minimum
Tax—Individuals, Estates, and Trusts,
may be eligible for a minimum tax credit
in 2017. See Form 8801.

Partners and Shareholders

An estate or trust that is a partner in a
partnership or a shareholder in an S
corporation must take into account its
share of items of income and
Cat. No. 51559W

deductions that enter into the
computation of its adjustments and tax
preference items.

Allocation of Deductions to
Beneficiaries

The distributable net alternative
minimum taxable income (DNAMTI) of
the estate or trust doesn't include
amounts of depreciation, depletion, and
amortization that are allocated to the
beneficiaries, just as the distributable
net income of the estate or trust doesn't
include these items for regular tax
purposes.
Report separately in box 12 of
Schedule K-1 (Form 1041),
Beneficiary's Share of Income,
Deductions, Credits, etc., any
adjustments or tax preference items
attributable to accelerated depreciation
(code G), depletion (code H), and
amortization (code I) that were allocated
to the beneficiaries.

Optional Write-Off for Certain
Expenditures

There is no AMT adjustment for the
following items if the estate or trust
elects to deduct them ratably over the
period of time shown for the regular tax.
Circulation expenditures—3 years
(section 173).
Research and experimental
expenditures—10 years (section
174(a)).
Intangible drilling costs—60 months
(section 263(c)).
Mining exploration and development
costs—10 years (sections 616(a) and
617(a)).
The election must be made in the
year the expenditure was made and
may be revoked only with IRS consent.
See section 59(e) and Regulations
section 1.59-1 for more details.

Specific Instructions
Part I—Estate's or Trust's
Share of Alternative
Minimum Taxable Income
Line 2—Interest

In determining the alternative minimum
taxable income, qualified residence
interest (other than qualified housing
interest defined in section 56(e)) isn't
allowed.
If you completed Form 4952,
Investment Interest Expense Deduction,
for regular tax purposes, you may have
an adjustment on this line. Refigure your
investment interest expense on a
separate AMT Form 4952 as follows.

Step 1. On line 1 of the AMT Form
4952, follow the instructions for that line,
but also include the following amounts.
Any qualified residence interest
(other than qualified housing interest)
that was paid or accrued on a loan or
part of a loan that is allocable to
property held for investment as defined
in section 163(d)(5) (for example,
interest on a home equity loan whose
proceeds were invested in stocks or
bonds).
Any interest that would have been
deductible if interest on specified private
activity bonds had been included in
income. See the instructions for line 8
for the definition of specified private
activity bonds.
Step 2. On line 2, enter the AMT
disallowed investment interest expense
from 2016.
Step 3. When completing Part II of the
AMT Form 4952, refigure gross income
from property held for investment, any
net gain from the disposition of property
held for investment, net capital gain
from the disposition of property held for
investment, and any investment
expenses, taking into account all AMT
adjustments and tax preference items
that apply. Include any interest income
and investment expenses from private
activity bonds issued after August 7,
1986.
When completing line 4g of the AMT
Form 4952, enter the smaller of:
The amount from line 4g of the
regular tax Form 4952, or
The total of lines 4b and 4e of the
AMT Form 4952.
Step 4. Complete Part III.
Enter on Schedule I, line 2 the
difference between line 8 of the AMT
Form 4952 and line 8 of the regular tax

Form 4952. If the AMT deduction is
greater, enter the difference as a
negative amount.

Line 3—Taxes

Enter any state, local, or foreign real
property taxes; state or local personal
property taxes; state and local general
sales taxes; and any state, local, or
foreign income taxes that were included
on Form 1041, page 1, line 11.

Line 5—Refund of Taxes

Enter any refunds received in 2017 of
taxes described for line 3 above and
included in income.

Line 6—Depletion

Refigure the depletion deduction for
AMT purposes by using only the income
and deductions allowed for the AMT
when refiguring the limit based on
taxable income from the property under
section 613(a) and the limit based on
taxable income, with certain
adjustments, under section 613A(d)(1).
Also, the depletion deduction for mines,
wells, and other natural deposits under
section 611 is limited to the property's
adjusted basis at the end of the year, as
refigured for the AMT, unless the estate
or trust is an independent producer or
royalty owner claiming percentage
depletion for oil and gas wells. Figure
this limit separately for each property.
When refiguring the property's adjusted
basis, take into account any AMT
adjustments made this year or in
previous years that affect basis (other
than the current year's depletion).
Enter on line 6 the difference
between the regular tax and AMT
deduction. If the AMT deduction is more
than the regular tax deduction, enter the
difference as a negative amount.

Line 7—Net Operating Loss
Deduction

Enter any NOLD from line 15b of page 1
of the Form 1041 as a positive amount.

Line 8—Interest From Specified
Private Activity Bonds Exempt
From the Regular Tax

Enter the interest earned from specified
private activity bonds reduced (but not
below zero) by any deduction that would
have been allowable if the interest were
includible in gross income for regular tax
purposes. Each payer of this type of
interest should send a Form 1099-INT,
Interest Income, to the estate or trust
showing the amount of this interest in
box 9. Generally, specified private
activity bonds are any qualified bonds
(as defined in section 141) issued after
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August 7, 1986, and before 2009 or
after 2010, the interest on which isn't
includible in gross income for the
regular tax. See section 57(a)(5) for
more information.
Don’t include interest on qualified
Gulf Opportunity Zone bonds described
in section 1400N(a) or qualified
Midwestern disaster area bonds.
Exempt-interest dividends paid by a
regulated investment company are
treated as interest from specified private
activity bonds to the extent the
dividends are attributable to interest on
the bonds received by the company,
minus an allocable share of the
expenses paid or incurred by the
company in earning the interest. This
amount should also be reported to the
estate or trust on Form 1099-DIV in
box 11.

Line 9—Qualified Small
Business Stock

If the estate or trust claimed the
exclusion under section 1202 for gain
on qualified small business stock
acquired before September 28, 2010,
and held more than 5 years, multiply the
excluded gain (as shown on Form 8949
in column (g)) by 7% (.07). Enter the
result on line 9 as a positive amount.

Line 10—Exercise of Incentive
Stock Options

For regular tax purposes, no income is
recognized when an incentive stock
option (as defined in section 422(b)) is
exercised. However, this rule doesn't
apply for AMT purposes. Instead, the
estate or trust must generally include on
line 10 the excess, if any, of:
1. The fair market value (FMV) of
the stock acquired through exercise of
the option (determined without regard to
any lapse restriction) when its rights in
the acquired stock first become
transferable or when these rights are no
longer subject to a substantial risk of
forfeiture, over
2. The amount paid for the stock,
including any amount paid for the option
used to acquire the stock.
Even if the estate's or trust's

TIP rights in the stock aren't

transferable and are subject to a
substantial risk of forfeiture, you may
elect to include in AMT income the
excess of the stock's FMV (determined
without regard to any lapse restriction)
over the exercise price upon the transfer
to the estate or trust of the stock
acquired through exercise of the option.
See section 83(b) for more details. The

2017 Instructions for Schedule I (Form 1041)

election must be made no later than 30
days after the date of transfer.

!

CAUTION

If the estate or trust acquired stock by
exercising an option and it disposed of
that stock in the same year, the tax
treatment under the regular tax and the
AMT is the same, and no adjustment is
required.
Increase the AMT basis of any stock
acquired through the exercise of an
incentive stock option by the amount of
the adjustment.
Note. If a Form 3921, Exercise of an
Incentive Stock Option Under Section
422(b), was received, it may help you
figure the adjustment.

Line 11—Other Estates and
Trusts

If the estate or trust is the beneficiary of
another estate or trust, enter the
adjustment for minimum tax purposes
from box 12, code A, Schedule K-1
(Form 1041).

Line 12—Electing Large
Partnerships

If the estate or trust is a partner in an
electing large partnership, enter on
line 12 the amount from Schedule K-1
(Form 1065-B), Partner's Share of
Income (Loss) From an Electing Large
Partnership, box 6. Take into account
any amount from Schedule K-1 (Form
1065-B), box 5, when figuring the
amount to enter on line 15.

Line 13—Disposition of
Property

Use this line to report any AMT
adjustment related to the disposition of
property resulting from refiguring:
1. Gain or loss from the sale,
exchange, or involuntary conversion of
property reported on Form 4797, Sales
of Business Property;
2. Casualty gain or loss to business
or income-producing property reported
on Form 4684, Casualties and Thefts;
3. Ordinary income from the
disposition of property not taken into
account in 1 or 2 above or on any other
line on Schedule I, such as a
disqualifying disposition of stock
acquired in a prior year by exercising an
incentive stock option; and
4. Capital gain or loss (including any
carryover that is different for the AMT)
reported on Form 8949, Sales and
Other Dispositions of Capital Assets, or
Schedule D (Form 1041), Capital Gains
and Losses.

The $3,000 capital loss
limitation for the regular tax
applies separately for the AMT.

First, figure any ordinary income
adjustment related to 3, earlier. Then,
refigure Form 4684, Form 4797, Form
8949, and Schedule D (Form 1041) for
the AMT, if applicable, by taking into
account any adjustments you made this
year or in previous years that affect the
estate's or trust's basis or otherwise
result in a different amount for AMT. If
the estate or trust has a capital loss after
refiguring Schedule D for the AMT,
apply the $3,000 capital loss limitation
separately to the AMT loss. For each of
the four items listed above, figure the
difference between the amount included
in taxable income for the regular tax and
the amount included in income for the
AMT. Treat the difference as a negative
amount if (a) both the AMT and regular
tax amounts are zero or more and the
AMT amount is less than the regular tax
amount or (b) the AMT amount is a loss,
and the regular tax amount is a smaller
loss, or zero or more.
Enter on line 13 the combined
adjustments for the four items earlier.

Line 14—Depreciation on
Assets Placed in Service After
1986

This section describes when
depreciation must be refigured for the
AMT and how to figure the amount to
enter on line 14.

Don’t include on this line any
depreciation adjustment from:
An activity for which the estate or
trust isn't at risk or income or loss from a
partnership or an S corporation if the
basis limitations under section 704(d) or
1366(d) apply. Take this adjustment into
account on line 16;
A tax shelter farm activity. Take this
adjustment into account on line 23; or
A passive activity. Take this
adjustment into account on line 15.
What depreciation must be refigured
for the AMT? Generally, you must
refigure depreciation for the AMT,
including depreciation allocable to
inventory costs, for:
Property placed in service after 1998
that is depreciated for the regular tax
using the 200% declining balance
method (generally 3-, 5-, 7-, or 10-year
property under the modified accelerated
cost recovery system (MACRS), except
for certain qualified property eligible for
the special depreciation allowance
(discussed later)),

2017 Instructions for Schedule I (Form 1041)

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Section 1250 property placed in
service after 1998 that isn't depreciated
for the regular tax using the straight line
method, and
Tangible property placed in service
after 1986 and before 1999. If the
transitional election was made under
section 203(a)(1)(B) of the Tax Reform
Act of 1986, this rule applies to property
placed in service after July 31, 1986.
What depreciation isn't refigured for
the AMT? Don’t refigure depreciation
for the AMT for the following items.
Residential rental property placed in
service after 1998.
Nonresidential real property with a
class life of 27.5 years or more placed in
service after 1998 that is depreciated for
the regular tax using the straight line
method.
Other section 1250 property placed in
service after 1998 that is depreciated for
the regular tax using the straight line
method.
Property (other than section 1250
property) placed in service after 1998
that is depreciated for the regular tax
using the 150% declining balance
method or the straight line method.
Property for which you elected to use
the alternative depreciation system
(ADS) of section 168(g) for the regular
tax.
Qualified property that is or was
eligible for the special depreciation
allowance if the depreciable basis of the
property for the AMT is the same as for
the regular tax. This applies to any
special depreciation allowance,
including those for qualified disaster
assistance property, qualified reuse and
recycling property, qualified cellulosic
biofuel plant property, qualified New
York Liberty Zone property, qualified
Gulf Opportunity Zone property, and
Kansas disaster area qualified recovery
assistance property. The special
allowance is deductible for the AMT,
and there also is no adjustment required
for any depreciation figured on the
remaining basis of the qualified property
if the depreciable basis of the property
for the AMT is the same as for the
regular tax. Property for which an
election is in effect to not have the
special allowance apply isn't qualified
property. In addition, if you elect not to
have any special depreciation
allowance apply, the property may be
subject to an AMT adjustment for
depreciation if it was placed in service
before 2016. It is not subject to an AMT
adjustment for depreciation if it was
placed in service after 2015.
Motion picture films, videotapes, or
sound recordings.

Property depreciated under the
unit-of-production method or any other
method not expressed in a term of
years.
Qualified Indian reservation property.
A natural gas gathering line placed in
service after April 11, 2005.
How is depreciation refigured for the
AMT? See methods below.
Property placed in service before
1999. Refigure depreciation for the
AMT using ADS with the same
convention used for the regular tax. See
the table below for the method and
recovery period to use.
Property Placed in Service Before 1999
IF the property is...

THEN use the...

Section 1250 property. Straight line method
over 40 years.
Tangible property
(other than section
1250 property)
depreciated using
straight line for the
regular tax.

Straight line method
over the property's
AMT class life.

Any other tangible
property.

150% declining
balance method,
switching to straight
line the first tax year it
gives a larger
deduction, over the
property's AMT class
life.

Property placed in service after
1998. Use the same convention and
recovery period used for the regular tax.
For property other than section 1250
property, use the 150% declining
balance method, switching to straight
line the first tax year it gives a larger
deduction. For section 1250 property,
use the straight line method.
How is the AMT class life determined? The class life used for the AMT
isn't necessarily the same as the
recovery period used for the regular tax.
The class lives for the AMT are listed in
Rev. Proc. 87-56, 1987-2 C.B. 674, and
in Pub. 946, How To Depreciate
Property. Use 12 years for any tangible
personal property not assigned a class
life.
See Pub. 946 for optional tables

TIP that can be used to figure AMT

depreciation. Rev. Proc. 89-15,
1989-1 C.B. 816, has special rules for
short tax years and for property
disposed of before the end of the
recovery period.

How is the line 14 adjustment figured? Subtract the AMT deduction for
depreciation from the regular tax
deduction and enter the result. If the
AMT deduction is more than the regular
tax deduction, enter the difference as a
negative amount.
In addition to the AMT adjustment to
your deduction for depreciation, you
must also adjust the amount of
depreciation that was capitalized, if any,
to account for the difference between
the rules for the regular tax and the
AMT. Include on this line the current
year adjustment to taxable income, if
any, resulting from the difference.

Line 15—Passive Activities
Don’t enter again elsewhere on
this schedule any AMT
CAUTION adjustment or tax preference
item included on this line.

!

For AMT purposes, the rules described
in section 469 apply, except that in
applying the limitations, minimum tax
rules apply.
Refigure passive activity gains and
losses on an AMT basis. Refigure a
passive activity gain or loss by taking
into account all AMT adjustments or tax
preference items that pertain to that
activity.
You may complete a second Form
8582, Passive Activity Loss Limitations,
to determine the passive activity losses
allowed for AMT purposes, but don't
send this AMT Form 8582 to the IRS.
Enter the difference between the loss
reported for regular tax purposes and
the AMT loss, if any.
The amount of any passive
TIP activity loss that isn't deductible
(and is therefore carried
forward) for AMT purposes is likely to
differ from the amount (if any) that is
carried forward for regular tax purposes.
Therefore, it is essential that you retain
adequate records for both AMT and
regular tax purposes.
Publicly traded partnerships (PTPs).
If the estate or trust had a loss from a
PTP, refigure the loss using any AMT
adjustments, tax preference items, and
any AMT prior year unallowed loss.

Line 16—Loss Limitations

Refigure your allowable losses for AMT
purposes from activities for which you
aren't at risk and basis limitations
applicable to interests in partnerships
and stock in S corporations by taking
into account your AMT adjustments and
tax preference items. See sections
59(h), 465, 704(d), and 1366(d).
Enter the difference between the loss
reported for regular tax purposes and
the AMT loss. If the AMT loss is more
than the loss reported for regular tax
purposes, enter the adjustment as a
negative amount.

Line 17—Circulation Costs
Don’t make this adjustment for
expenditures for which you
CAUTION elected the optional 3-year
write-off period for regular tax purposes.

!

Circulation expenditures deducted
under section 173(a) for regular tax
purposes must be amortized for AMT
purposes over 3 years beginning with
the year the expenditures were paid or
incurred.
Enter the difference between the
regular tax and AMT deduction. If the
AMT deduction is greater, enter the
difference as a negative amount.
If the estate or trust had a loss on
property for which circulation
expenditures haven't been fully
amortized for the AMT, the AMT
deduction is the smaller of (a) the
amount of the loss allowable for the
expenditures had they remained
capitalized or (b) the remaining
expenditures to be amortized for the
AMT.

Line 18—Long-Term Contracts

For AMT purposes, the percentage of
completion method of accounting
described in section 460(b) generally
must be used. However, this rule
doesn't apply to any home construction
contract (as defined in section 460(e)
(6)).
Note. Contracts described in section
460(e)(1)(B) are subject to the simplified
method of cost allocation of section
460(b)(4).
Enter the difference between the
AMT and regular tax income. If the AMT
income is smaller, enter the difference
as a negative amount.

If the loss is from a passive
activity, use line 15 instead. If
CAUTION the loss is from a tax shelter
farm activity (that isn't passive), use
line 23.

!

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2017 Instructions for Schedule I (Form 1041)

Line 19—Mining Costs
Don’t make this adjustment for
costs for which you elected the
CAUTION optional 10-year write-off period
under section 59(e) for regular tax
purposes.

!

Expenditures for the development or
exploration of a mine or certain other
mineral deposits (other than an oil, gas,
or geothermal well) deducted under
sections 616(a) and 617(a) for regular
tax purposes must be amortized for
AMT purposes over 10 years beginning
with the year the expenditures were
paid or incurred.
Enter the difference between the
amount allowed for AMT purposes and
the amount allowed for regular tax
purposes. If the amount allowed for
AMT purposes exceeds the amount
deducted for regular tax purposes, enter
the difference as a negative amount.
If the estate or trust had a loss on
property for which mining expenditures
haven't been fully amortized for the
AMT, the AMT deduction is the smaller
of (a) the amount of the loss allowable
for the expenditures had they remained
capitalized or (b) the remaining
expenditures to be amortized for the
AMT.

Line 20—Research and
Experimental Costs
Don’t make this adjustment for
costs paid or incurred in
CAUTION connection with an activity in
which the estate or trust materially
participated under the passive activity
rules or for costs for which you elected
the optional 10-year write-off for
research and experimental
expenditures under section 59(e) for
regular tax purposes.

!

Research and experimental
expenditures deducted under section
174(a) for regular tax purposes
generally must be amortized for AMT
purposes over 10 years beginning with
the year the expenditures were paid or
incurred.
Enter the difference between the
amount allowed for AMT purposes and
the amount allowed for regular tax
purposes. If the amount for AMT
purposes exceeds the amount allowed
for regular tax purposes, enter the
difference as a negative amount.
If the estate or trust had a loss on
property for which research and
experimental costs haven't been fully
amortized for the AMT, the AMT

deduction is the smaller of (a) the loss
allowable for the costs had they
remained capitalized or (b) the
remaining costs to be amortized for the
AMT.

Line 21—Income From Certain
Installment Sales Before
January 1, 1987

The installment method doesn't apply
for AMT purposes to any nondealer
disposition of property that occurred
after August 16, 1986, but before the
first day of your tax year that began in
1987, if an installment obligation to
which the proportionate disallowance
rule applied arose from the disposition.
Enter on line 21 the amount of
installment sale income that was
reported for regular tax purposes.

Line 22—Intangible Drilling
Costs Preference (IDCs)
Don’t make this adjustment for
costs for which you elected the
CAUTION optional 60-month write-off
under section 59(e) for regular tax
purposes.

!

IDCs from oil, gas, and geothermal
wells are a preference to the extent that
the excess IDCs exceed 65% of the net
income from the wells. Figure the
preference for all oil and gas properties
separately from the preference for all
geothermal properties.
Figure excess IDCs as follows:
1. Determine the amount of the
estate's or trust's IDCs allowed for the
regular tax under section 263(c), but
don’t include any section 263(c)
deduction for nonproductive wells, then
2. Subtract the amount that would
have been allowed had you amortized
these IDCs over a 120-month period
starting with the month the well was
placed in production.
Cost depletion can be
substituted for the amount
CAUTION allowed using amortization over
120 months.

!

Net income. Determine net income by
reducing the gross income that the
estate or trust received or accrued
during the tax year from all oil, gas, and
geothermal wells by the deductions
allocable to those wells (reduced by the
excess IDCs). When refiguring net
income, use only income and
deductions allowed for the AMT.
Exception. The preference for IDCs
from oil and gas wells doesn't apply to
taxpayers who are independent

2017 Instructions for Schedule I (Form 1041)

-5-

producers (that is, not integrated oil
companies as defined in section 291(b)
(4)). However, this benefit may be
limited. First, figure the IDC preference
as if this exception didn't apply. For
purposes of this exception, complete
and combine lines 1 through 23,
including the IDC preference. If the
amount of the IDC preference exceeds
40% of the total of lines 1 through 23,
enter the excess on line 22 (the benefit
of this exception is limited). Otherwise,
don’t enter an amount on line 22 (the
estate's or trust's benefit from this
exception isn't limited).

Line 23—Other Adjustments

Enter on line 23 the total of any other
adjustments that apply including the
following.
Depreciation figured using
pre-1987 rules. For AMT purposes,
use the straight line method to figure
depreciation on real property. Use a
recovery period of 19 years for 19-year
real property and 15 years for
low-income housing. Enter the excess
of depreciation claimed for regular tax
purposes over depreciation refigured
using the straight line method. Figure
this amount separately for each property
and include on line 23 only positive
amounts.
For leased personal property other
than recovery property, enter the
amount by which the regular tax
depreciation using the pre-1987 rules
exceeds the depreciation allowable
using the straight line method. For
leased 10-year recovery property and
leased 15-year public utility property,
enter the amount by which the
depreciation deduction determined for
regular tax purposes is more than the
deduction allowable using the straight
line method with a half-year convention,
no salvage value, and a recovery period
of 15 years (22 years for 15-year public
utility property). Figure this amount
separately for each property and include
on line 23 only positive amounts.
Patron's adjustment. Distributions
the estate or trust received from a
cooperative may be includible in
income. Unless the distributions are
nontaxable, include on line 23 the total
AMT patronage dividend adjustment
reported to the estate or trust from the
cooperative.
Amortization of pollution control
facilities. The amortization deduction
under section 169 must be refigured for
the AMT. For facilities placed in service
after 1986 and before 1999, figure the
amortization deduction for the AMT
using the ADS described in section

168(g). For facilities placed in service
after 1998, figure the AMT deduction
under MACRS using the straight line
method. Enter the difference between
the regular tax and AMT deduction. If
the AMT amount is greater, enter the
difference as a negative amount.
Tax shelter farm activities. Figure
this adjustment only if the tax shelter
farm activity (as defined in section 58(a)
(2)) isn't a passive activity. If the activity
is passive, include it with any other
passive activities on line 15.
Refigure all gains and losses
reported for the regular tax from tax
shelter farm activities by taking into
account any AMT adjustments and
preferences. Determine tax shelter farm
activity gain or loss for the AMT using
the same rules used for the regular tax
with the following modifications. No
refigured loss is allowed, except to the
extent an estate or trust is insolvent (see
section 58(c)(1)). A refigured loss may
not be used in the current tax year to
offset gains from other tax shelter farm
activities. Instead, any refigured loss
must be suspended and carried forward
indefinitely until (a) the estate or trust
has a gain in a subsequent tax year
from the same activity or (b) the activity
is disposed of.
The AMT amount of any tax shelter
farm activity loss that isn't deductible
and is carried forward is likely to differ
from the regular tax amount. Keep
adequate records for both the AMT and
regular tax.
Enter the difference between the
amount that would be reported for the
activity on Schedule E (Form 1040),
Supplemental Income and Loss, or
Schedule F (Form 1040), Profit or Loss
From Farming, for the AMT and the
regular tax amount. If (a) the AMT loss
is more than the regular tax loss, (b) the
AMT gain is less than the regular tax
gain, or (c) there is an AMT loss and a
regular tax gain, then enter the
adjustment as a negative amount.
Enter any adjustment for amounts
reported on Form 8949, Schedule D
(Form 1041), Form 4684, or Form 4797
for the activity on line 13 instead of
line 23.
Biofuel producer credit and
biodiesel and renewable diesel fuels
credit. If the adjusted total income
(Form 1041, line 17) includes the
amount of the biofuel producer credit or
biodiesel and renewable diesel fuels
credit, include that amount as a
negative amount on line 23.
Related adjustments. AMT
adjustments and tax preference items

may affect deductions that are based on
an income limit other than adjusted
gross income (AGI) or modified AGI (for
example, farm conservation expenses).
Refigure these deductions using the
income limit as modified for the AMT.
Include the difference between the
regular tax and AMT deduction on
line 23. If the AMT deduction is more
than the regular tax deduction, include
the difference as a negative amount.
Don’t make an adjustment on
line 23 for an item you refigured
CAUTION on another line of Schedule I
(for example, line 6).

!

Line 24—Alternative Tax Net
Operating Loss Deduction

The ATNOLD is the sum of the
alternative tax net operating loss
(ATNOL) carryovers and carrybacks to
the tax year, subject to the limitation
explained below.
The net operating loss (NOL) under
section 172(c) is modified for alternative
tax purposes by (a) taking into account
the adjustments made under sections
56 and 58 and (b) reducing the NOL by
any item of tax preference under section
57. For an estate or trust that held a
residual interest in a real estate
mortgage investment conduit (REMIC),
figure the ATNOLD without regard to
any excess inclusion.
If this estate or trust is the beneficiary
of another estate or trust that terminated
in 2017, include any ATNOL carryover
that was reported in box 11, code E of
Schedule K-1 (Form 1041).
The estate's or trust's ATNOLD may
be limited. To figure the ATNOLD
limitation, first figure alternative
minimum taxable income (AMTI) without
regard to the ATNOLD and any
domestic production activities
deduction. For this purpose, figure a
tentative amount for line 6 of Schedule I
(Form 1041) by treating line 24 as if it
were zero. Then, figure a tentative total
by combining lines 1–23 of Schedule I
(Form 1041) using the line 6 tentative
amount. Add any domestic production
activities deduction to this tentative
total. The ATNOLD limitation is 90% of
the result.
However, the 90% limit doesn't apply
to an ATNOL that is attributable to
qualified disaster losses (as defined in
section 172(j)), qualified Gulf
Opportunity Zone losses as defined in
section 1400N(k)(2), qualified recovery
assistance losses (as defined in Pub.
4492-A, Information for Taxpayers
Affected by the May 4, 2007, Kansas
-6-

Storms and Tornadoes), qualified
disaster recovery assistance losses (as
defined in Pub. 4492-B, Information for
Affected Taxpayers in the Midwestern
Disaster Areas) or a 2008 or 2009 loss
that you elected to carryback more than
2 years under section 172(b)(1)(H). If an
ATNOL that is carried back or carried
forward to a tax year is attributable to
any of those losses, the ATNOLD for the
tax year is limited to the sum of:
1. The smaller of:
a. The sum of the ATNOL
carrybacks and carryforwards to the tax
year attributable to NOLs other than the
losses described in 2a below, or
b. 90% of AMTI for the tax year
(figured without regard to the ATNOLD
and any domestic production activities
deduction, as discussed earlier), plus
2. The smaller of:
a. The sum of the ATNOL
carrybacks and carryforwards to the tax
year attributable to qualified disaster
losses, qualified Gulf Opportunity Zone
losses, qualified recovery assistance
losses, qualified disaster recovery
assistance losses, and any 2008 or
2009 loss that you elected to carry back
more than 2 years under section 172(b)
(1)(H), or
b. 100% of AMTI for the tax year
(figured without regard to the ATNOLD
and any domestic production activities
deduction, as discussed earlier)
reduced by the amount determined
under 1, above.
Enter on line 24 the smaller of the
ATNOLD or the ATNOLD limitation.
Any ATNOL not used may be carried
back 2 years or forward up to 20 years.
In some cases, the carryback period is
longer than 2 years; for details, see Pub.
536, Net Operating Losses (NOLs) for
Individuals, Estates, and Trusts.
The treatment of ATNOLs doesn't
affect your regular tax NOL.
If you elected under section

TIP 172(b)(3) to forego the

carryback period for regular tax
purposes, the election will also apply for
the AMT.

Line 29—Estate's or Trust's
Share of Alternative Minimum
Taxable Income

For an estate or trust that held a residual
interest in a REMIC, line 29 may not be
less than the estate's or trust's share of
the amount on Schedule E (Form 1040),
line 38, column (c). If that amount is
larger than the amount you would

2017 Instructions for Schedule I (Form 1041)

otherwise enter on line 29, enter that
amount instead and write “Sch. Q” on
the dotted line next to line 29.

Part II—Income
Distribution Deduction on
a Minimum Tax Basis
Line 30—Adjusted Alternative
Minimum Taxable Income

Generally, enter on line 30, Schedule I,
the amount from line 25, Schedule I.
However, if Form 1041, page 1, line 4
and line 25 are losses, enter on line 30
the smaller of those losses. If Form
1041, line 4 is zero or a gain and line 25
is a loss, enter zero on line 30.

Line 31—Adjusted Tax-Exempt
Interest

To figure the adjusted tax-exempt
interest (including exempt-interest
dividends received as a shareholder in
a mutual fund or other regulated
investment company), subtract the total
of any:
1. Tax-exempt interest from Form
1041, Schedule A, line 2 figured for
AMT purposes, and
2. Section 212 expenses allowable
for AMT purposes allocable to
tax-exempt interest, from the amount of
tax-exempt interest received.
Don’t subtract any deductions
reported on lines 2 through 4,
Schedule I (Form 1041).
Section 212 expenses that are
directly allocable to tax-exempt interest
are allocated only to tax-exempt
interest. A reasonable proportion of
section 212 expenses that are indirectly
allocable to both tax-exempt interest
and other income must be allocated to
each class of income.

Line 33

Reduce the amount on line 33 by any
allocable section 1202 exclusion (as
refigured for AMT purposes).

Line 34

Enter any capital gains that were paid or
permanently set aside for charitable
purposes from the current year's income
included on line 1 of Form 1041,
Schedule A. Reduce the amount on
line 34 by any allocable section 1202
exclusion (as refigured for AMT
purposes).

Lines 35 and 36

Capital gains and losses must take into
account any basis adjustments from

line 13, Part I of Form 1041
(Schedule I).

Form 1041 and Schedules A, B, G, J,
and K-1.

Line 41—Adjustment for
Tax-Exempt Income

Part III—Alternative
Minimum Tax Computation

In figuring the income distribution
deduction on a minimum tax basis, the
estate or trust isn't allowed a deduction
for any item of DNAMTI (line 37) that
isn't included in the gross income of the
estate or trust figured on an AMT basis.
Thus, for purposes of figuring the
allowable income distribution deduction
on a minimum tax basis, the DNAMTI is
figured without regard to any
tax-exempt interest (except for amounts
from line 8).
If tax-exempt interest is the only
tax-exempt income included in the total
distributions (line 40), and the DNAMTI
(line 37) is less than or equal to line 40,
then enter on line 41 the amount from
line 31.
If tax-exempt interest is the only
tax-exempt income included in the total
distributions (line 40), and the DNAMTI
is more than line 40 (that is, the estate
or trust made a distribution that is less
than the DNAMTI), then figure the
adjustment by multiplying line 31 by a
fraction, the numerator of which is the
total distributions (line 40), and the
denominator of which is the DNAMTI
(line 37). Enter the result on line 41.
If line 40 includes tax-exempt income
other than tax-exempt interest (except
for amounts from line 8), figure line 41
by subtracting the total expenses
allocable to tax-exempt income that are
allowable for AMT purposes from
tax-exempt income included on line 40.
Expenses that are directly allocable
to tax-exempt income are allocated only
to tax-exempt income. A reasonable
proportion of expenses indirectly
allocable to both tax-exempt income
and other income must be allocated to
each class of income.

Line 44—Income Distribution
Deduction on a Minimum Tax
Basis

Allocate the income distribution
deduction figured on a minimum tax
basis among the beneficiaries in the
same manner as income was allocated
for regular tax purposes. You need the
allocated income distribution deduction
figured on a minimum tax basis to figure
the beneficiary's adjustment for
minimum tax purposes, as explained
under Box 12–Alternative minimum tax
(AMT) items in the Schedule K-1
instruction section of the Instructions for

2017 Instructions for Schedule I (Form 1041)

-7-

Line 53—Alternative Minimum
Foreign Tax Credit
To see if you need to figure the

TIP estate's or trust's AMT foreign

tax credit, fill in line 55 of
Schedule I as instructed. If the amount
on line 55 is greater than or equal to the
amount on line 52, the estate or trust
doesn't owe the AMT. Enter zero on
line 56 and see Who Must Complete
earlier to find out if you must file
Schedule I with Form 1041. However,
even if the estate or trust doesn't owe
AMT, you may need to complete line 53
to see if you have an AMT foreign tax
credit carryback or carryforward to other
tax years.
To figure the AMT foreign tax credit,
follow the steps discussed below.
Step 1. Complete and attach a
separate AMT Form 1116, with the
notation at the top “Alt Min Tax” for each
separate limitation category specified at
the top of Form 1116.
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.”
Step 2. If you (on behalf of the estate or
trust) previously made or are making the
Simplified limitation election (as
discussed later), skip Part I and enter on
the AMT Form 1116, line 17, the same
amount you entered on that line for the
regular tax. If you didn't complete Form
1116 for the regular tax and you
previously made or are making the
simplified limitation election (on behalf
of the estate or trust), complete Part I
and lines 15 through 17 of the AMT
Form 1116 using regular tax amounts.
If the election doesn't apply,
complete Part I, using only income and
deductions allowed for the AMT that are
attributable to sources outside the
United States. If the estate or trust has
any foreign source qualified dividends
or foreign source capital gains 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 AMT Form 1116.
Step 3. Follow the instructions below, if
applicable, to determine the amount of

foreign source qualified dividends and
foreign source capital gains and losses
to include on line 1a and line 5 of the
AMT Form 1116.
Foreign qualified dividends. You
must adjust the estate's or trust's foreign
source qualified dividends before you
include those amounts on line 1a of the
AMT Form 1116 if:
Line 62 of Schedule I (Form 1041) is
greater than zero,
Line 83 of Schedule I (Form 1041) is
smaller than line 84, and
The exception for foreign qualified
dividends below doesn't apply.
But, you don’t need to make any
adjustments if:
The estate or trust qualifies for the
adjustment exception under Qualified
Dividends Tax Worksheet (Estates and
Trusts) or Schedule D Filers in the
Instructions for Form 1116 and
Line 62 of Schedule I (Form 1041)
isn't more than $187,800.
Note. Use the estate's or trust's capital
gains and losses as refigured for the
AMT to determine whether your total
amounts are less than the $20,000
threshold under the adjustment
exception.
To adjust foreign source qualified
dividends, multiply the estate's or trust's
foreign source qualified dividends in
each separate category by 0.5357 if the
foreign source qualified dividends are
taxed at a rate of 15%. Include the
results on line 1a of the AMT
Form 1116.
If they are taxed at a rate of 20%,
multiply your foreign source qualified
dividends in each separate category by
0.7143. Include the results on line 1a of
the AMT Form 1116.
You adjust the estate's or trust's
foreign source qualified dividends taxed
at the 0% rate by not including them on
line 1a of Form 1116. Amounts taxed at
the 0% rate are on line 8 of the Qualified
Dividends Tax Worksheet in the
Instructions for Form 1041, line 30 of
Schedule D (Form 1041), or line 19 of
the Schedule D Tax Worksheet in the
Instructions for Schedule D (Form
1041).
Don’t adjust the amount of any
foreign source qualified
CAUTION dividends you elected to include
on line 4g of the AMT Form 4952.

!

Foreign capital gains or losses. If
any capital gain or loss from U.S. or
foreign sources is different for the AMT,

use the refigured amounts to complete
this step.
To figure the adjustment for the
estate's or trust's foreign source capital
gains or losses, you must first determine
whether you can use Worksheet A or
Worksheet B in the Instructions for Form
1116. Otherwise, you must use the
instructions for Capital Gains and
Losses in Pub. 514, Foreign Tax Credit
for Individuals, to figure the adjustments
you must make to the estate's or trust's
foreign source capital gains and losses.
Use Worksheet A if the estate or trust
has foreign source capital gains or
losses in no more than two separate
categories, and any of the following
apply.
You weren't required to make
adjustments to the estate's or trust's
foreign source qualified dividends under
the rules described earlier (or if the
estate or trust had foreign source
qualified dividends, you wouldn’t have
been required to make those
adjustments).
Schedule D (Form 1041), line 18a,
column (2) or line 19, column (2), as
refigured for the AMT if necessary, is
zero or a loss.
On the AMT Schedule D Tax
Worksheet for Form 1041, a) line 17 is
zero, b) line 9 is zero, or c) line 42 is
equal to or greater than line 43.
On the AMT Part V of Schedule D
(Form 1041), a) line 22 of that AMT Part
V minus the amount on Form 4952,
line 4e, that you elected to include on
Form 4952, line 4g, is zero or less, b)
line 27 of that AMT Part V of Schedule D
(Form 1041) is zero, or c) line 43 of that
AMT Part V is equal to or greater than
line 44.
Use Worksheet B if you:
Can’t use Worksheet A,
Have foreign source capital gains and
losses in no more than two separate
categories,
Didn’t have any item of unrecaptured
section 1250 gain or any item of 28%
rate gain or loss for either regular tax or
AMT, and
Didn’t have any capital gains taxed at
a rate of 0% or 20%.
Instructions for Worksheets A and
B. When you complete Worksheet A or
B, use foreign source capital gains and
losses as refigured for the AMT, if
necessary, and don’t use any foreign
source capital gains that you elected to
include on line 4g of the AMT Form
4952. If you must complete a
Schedule D (Form 1041) for the AMT,
use line 19 of that AMT Schedule D
(Form 1041) to complete line 3 of
-8-

Worksheet A or line 4 of the Line 2
Worksheet for Worksheet B. Use
0.5357 instead of 0.3788 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 the estate or trust doesn't 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. When using the
instructions in Pub. 514 to determine if
you must adjust foreign source capital
gains and losses, make the following
substitutions.
When the amount of any AMT gain is
in the 15% rate group, multiply it by
0.5357 instead of 0.3788.
When the amount of any AMT gain is
in the 20% rate group, multiply it by
0.7143 instead of 0.5051.
When the amount of any AMT gain is
in the 25% rate group, multiply it by
0.8929 instead of 0.6313.
When the amount of any AMT gain is
in the 28% rate group, multiply it by 1.0
instead of 0.7071.
Step 4. Complete Part II and lines 9
through 14 of the AMT Form 1116. Use
the estate's or trust's AMT foreign tax
credit carryover, if any, on line 10.
Step 5. If the simplified limitation
election doesn't apply, complete lines
15 through 17 of the AMT Form 1116.
Step 6. If you didn't complete Part IV of
Schedule I (Form 1041), enter the
amount from Schedule I (Form 1041),
line 29 on line 18 of the AMT Form 1116
and go to Step 7 later.
If you completed Part IV of
Schedule I (Form 1041), complete an
AMT Worksheet for Line 18 in the
Instructions for Form 1116 to figure the
amount to enter on Form 1116, line 18,
if:
Line 62 of Schedule I (Form 1041) is
greater than zero, and
Line 83 of Schedule I (Form 1041) is
smaller than line 84.
But you don’t need to complete the
Worksheet for Line 18 if:
The estate or trust qualifies for the
adjustment exception discussed in the
Instructions for Form 1116 and
Line 62 of Schedule I (Form 1041)
isn't more than $187,800.
Note. Use the estate's and trust's
capital gains and losses as refigured for
the AMT to determine if its total amounts
are less than the $20,000 threshold
under the adjustment exception.
If you don’t have to complete an AMT
Worksheet for Line 18, enter the amount

2017 Instructions for Schedule I (Form 1041)

from line 29 of Schedule I on line 18 of
the AMT Form 1116.
Instructions for completing an
AMT Worksheet for Line 18. To
complete an AMT Worksheet for
Line 18 in the Instructions for Form
1116, follow these instructions.
1. Enter the amount from Schedule I
(Form 1041), line 29 on line 1 of the
worksheet.
2. Skip lines 2 and 3 of the
worksheet.
3. Enter the amount from Schedule I
(Form 1041), line 81 on line 4 of the
worksheet.
4. Multiply line 4 of the worksheet by
0.1071 (instead of 0.3687) and enter the
results on line 5 of the worksheet.
5. Enter the amount from Schedule I
(Form 1041), line 78 on line 6 of the
worksheet.
6. Multiply line 6 of the worksheet by
0.2857 (instead of 0.4949) and enter the
result on line 7 of the worksheet.
7. Enter the amount from Schedule I
(Form 1041), line 75 on line 8 of the
worksheet.
8. Multiply line 8 of the worksheet by
0.4643 (instead of 0.6212). Enter the
result on line 9 of the worksheet.
9. Enter the amount from
Schedule I, line 68, on line 10 of the
worksheet.
10. Complete lines 11 and 12 of the
worksheet as instructed on the
worksheet.
Step 7. Enter the amount from
Schedule I (Form 1041), line 52 on the
AMT Form 1116, line 20. Complete lines
19, 21, and 22 of the AMT Form 1116.
Step 8. Complete Part IV of the first
AMT Form 1116 only.
Enter on line 53 of Schedule I the
amount from line 30 of the first AMT
Form 1116.
Attach to the estate's or trust's return
all AMT Forms 1116 you used to figure
your AMT foreign tax credit.
AMT foreign tax credit carryback
and carryforward. If the AMT foreign
tax credit is limited, any unused amount
can be carried back or forward under
section 904(c). The election to forego
the carryback period for regular tax
purposes also applies for the AMT.
Simplified limitation election. The
estate or trust may elect to use a
simplified section 904 limitation to figure
its AMT foreign tax credit. To do so, use

the estate's or trust's regular tax income
for Form 1116, Part I, instead of
refiguring the estate's or trust's foreign
source income for the AMT, as
described in Step 2 in the instructions
for line 53, earlier. The estate or trust
must make the election for the first tax
year after 1997 for which it claims an
AMT foreign tax credit. If it doesn't make
the election for that year, it may not
make it for a later year. Once made, the
election applies to all later tax years and
may be revoked only with IRS consent.

Part IV—Line 52
Computation Using
Maximum Capital Gains
Rates
Lines 58, 59, and 60

If you used Schedule D (Form 1041),
the Schedule D Tax Worksheet in the
Instructions for Schedule D (Form
1041), or the Qualified Dividends Tax
Worksheet in the Instructions for Form
1041, you generally may enter the
amounts as instructed on Schedule I,
lines 58, 59, and 60. But don’t use those
amounts if any of the following apply.
1. The gain or loss from any
transaction reported on Form 8949 or
Schedule D (Form 1041) is different for
the AMT (for example, because the
AMT basis was different due to
depreciation adjustments or an
incentive stock option adjustment or the
AMT capital loss carryover from 2016
was different).
2. You didn't complete Part V of
Schedule D (Form 1041), the
Schedule D Tax Worksheet in the
Instructions for Schedule D (Form
1041), or the Qualified Dividends Tax
Worksheet in the Instructions for Form
1041 because Form 1041, line 22, was
zero or less.
3. The estate or trust received a
Schedule K-1 (Form 1041) that shows
an amount in box 12 with code B, C, D,
E, or F. If this applies, see If the estate
or trust is a beneficiary of another estate
or trust, later.
If 1 above applies, complete an AMT
Form 8949. Next, if 1 or 3 applies,
complete Parts I through IV of an AMT
Schedule D (Form 1041) by refiguring
the amounts of your gains and losses
for the AMT. Then, if 1, 2, or 3 applies,
complete the following lines of the
applicable schedule or worksheet:
Lines 22 through 26 of an AMT
Schedule D (Form 1041),

2017 Instructions for Schedule I (Form 1041)

-9-

Lines 2 through 13 of an AMT
Schedule D Tax Worksheet in the
Instructions for Schedule D (Form
1041), or
Lines 2 through 4 of a Qualified
Dividends Tax Worksheet in the
Instructions for Form 1041.
If you were required to complete an
AMT Form 4952, use it to figure the
amount to enter on line 25 of the AMT
Schedule D (Form 1041), lines 3 and 4
of the AMT Schedule D Tax Worksheet
in the Instructions for Schedule D (Form
1041), and line 3 of the Qualified
Dividends Tax Worksheet. Use amounts
from the AMT Schedule D (Form 1041),
AMT Schedule D Tax Worksheet in the
Instructions for Schedule D (Form 1041)
or Qualified Dividends Tax Worksheet in
the Instructions for Form 1041 to
complete Schedule I (Form 1041), lines
58, 59, and 60. Keep the AMT Form
8949, AMT Schedule D (Form 1041)
and applicable AMT worksheet for your
records, but don’t attach any of them to
Form 1041.
Don’t decrease the estate's or
trust's section 1202 exclusion
CAUTION by the amount, if any, included
on line 9 of Schedule I (Form 1041) .

!

If the estate or trust is a beneficiary
of another estate or trust. If the
estate or trust received a Schedule K-1
(Form 1041) from another estate or trust
that shows an amount in box 12 with
code B, C, D, E, or F, follow the
instructions in the table below.
IF the code in box 12 is... THEN include that
amount in the total on...
B

line 2 of an AMT Qualified
Dividends Tax Worksheet
in the Instructions for Form
1041; line 23 of an AMT
Schedule D (Form 1041);
or line 2 of an AMT
Schedule D Tax
Worksheet in the
Instructions for
Schedule D (Form 1041),
whichever applies.

C

line 5, column (h), of an
AMT Schedule D (Form
1041).

D

line 12, column (h), of an
AMT Schedule D (Form
1041).

E

line 11 of an AMT
Unrecaptured Section
1250 Gain Worksheet in
the Instructions for
Schedule D (Form 1041).

F

line 4 of an AMT 28% Rate
Gain Worksheet in the
Instructions for
Schedule D (Form 1041).