1041-US: Calculating alternative minimum tax items for Schedule K-1, Box 12 (FAQ)

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Question

How are the alternative minimum tax items calculated for Schedule K-1, Box 12?

Answer

  • Adjustment for minimum tax purposes (Code A): This amount is the beneficiary’s portion of the difference between Schedule I line 44 and Schedule B line 15.
  • AMT adjustment attributable to qualified dividends (Code B): If the beneficiary was allocated qualified dividends, this adjustment is the Code A amount multiplied by the ratio of the qualified dividends reported on Schedule K-1 line 2b divided by the income reported on Schedule K-1 lines 1, 2a, 3, 4a, 5, 6, 7, and 8.
  • AMT adjustment attributable to net short-term capital gain (Code C): If the beneficiary was allocated short-term capital gains, this adjustment is the Code A amount multiplied by the ratio of the short-term capital gains reported on Schedule K-1 line 3 divided by the income reported on Schedule K-1 lines 1, 2a, 3, 4a, 5, 6, 7, and 8.
  • AMT adjustment attributable to net long-term capital gain (Code D): If the beneficiary was allocated long-term capital gains, this adjustment is the Code A amount multiplied by the ratio of the long-term capital gains reported on Schedule K-1 line 4a divided by the income reported on Schedule K-1 lines 1, 2a, 3, 4a, 5, 6, 7, and 8.
  • AMT adjustment attributable to unrecaptured section 1250 gain (Code E): If the beneficiary was allocated unrecaptured section 1250 gains, this adjustment is the Code A amount multiplied by the ratio of the section 1250 gains reported on Schedule K-1 line 4c divided by the income reported on Schedule K-1 lines 1, 2a, 3, 4a, 5, 6, 7, and 8.
  • AMT adjustment attributable to 28 percent rate gain (Code F): If the beneficiary was allocated 28 percent rate gain, this adjustment is the Code A amount multiplied by the ratio of the 28 percent rate gain reported on Schedule K-1 line 4b divided by the income reported on Schedule K-1 lines 1, 2a, 3, 4a, 5, 6, 7, and 8.

Related topic: 1041-US: Schedule K-1 FAQs

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