! distributable net alternative minimum taxable income

CAUTION (DNAMTI). The section 199A deduction must be

added back to the amount from line 23, Schedule I (Form 1041), to calculate the income distribution deduction on a minimum tax basis.

Generally, enter on line 28, Schedule I, the amount from line 23, Schedule I, plus the amount of the section 199A deduction, if any. However, if Form 1041, page 1, line 4, and line 23, Schedule I (after adding back the section 199A deduction) are losses, enter on line 28 the smaller of those losses. If Form 1041, line 4, is zero or a gain and line 23, Schedule I, is a loss (after adding back the section 199A deduction), enter zero on line 28.

2025 Instructions for Schedule I (Form 1041) 7

Line 29—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 and 3, 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 31 Reduce the amount on line 31 by any allocable section 1202 exclusion (as refigured for AMT purposes).

Line 32 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 32 by any allocable section 1202 exclusion (as refigured for AMT purposes).

Lines 33 and 34 Capital gains and losses must take into account any basis adjustments from Schedule I (Form 1041), Part I, line 11.

Line 39—Adjustment for Tax-Exempt Income 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 35) 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 7).

If tax-exempt interest is the only tax-exempt income included in the total distributions (line 38), and the DNAMTI (line 35) is less than or equal to line 38, then enter on line 39 the amount from line 29.

If tax-exempt interest is the only tax-exempt income included in the total distributions (line 38), and the DNAMTI is more than line 38 (that is, the estate or trust made a distribution that is less than the DNAMTI), then figure the adjustment by multiplying line 29 by a fraction, the numerator of which is the total distributions (line 38), and the denominator of which is the DNAMTI (line 35). Enter the result on line 39.

If line 38 includes tax-exempt income other than tax-exempt interest (except for amounts from line 7), figure line 39 by subtracting the total expenses allocable to tax-exempt income that are allowable for AMT purposes from tax-exempt income included on line 38.

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