Part I—Estate's or Trust's Share of Alternative Minimum Taxable Income

Line 1—Adjusted Total Income or (Loss) Adjusted total income or (loss) (from Form 1041, line 17, or ESBT Tax Worksheet, line 13). See the ESBT Tax Worksheet in the Instructions for Form 1041.

Note. The section 199A deduction isn’t included in the amount reported on line 1. To figure your adjusted alternative minimum taxable income, any section 199A deduction taken on Form 1041, line 20, must be included as a negative amount on Line 21—Other Adjustments, later.

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 7 for the definition of specified private activity bonds.

Step 2. On line 2, enter the AMT disallowed investment interest expense from 2024.

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 (Form 1041), 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 or local 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 4—Refund of Taxes Enter any refunds received in 2025 of taxes described for line 3 above and included in income. Also, include foreign real property taxes that were deducted in years prior to 2025, but refunded in 2025 and included in income on Form 1041.

Line 5—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 5 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 6—Net Operating Loss Deduction Enter any NOLD from line 15b of page 1 of the Form 1041 as a positive amount.

Line 7—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

2 2025 Instructions for Schedule I (Form 1041)

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 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 New York Liberty Bonds, qualified Gulf Opportunity Zone bonds, qualified Midwestern disaster area bonds, or qualified Hurricane Ike 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 13.

Line 8—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% (0.07). Enter the result on line 8 as a positive amount.

Line 9—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 9 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 rights in the stock aren't

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

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 10—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).

ESBTs. Enter an amount on this line only if the S corporation was a beneficiary of an estate or trust, received a Schedule K-1 (Form 1041) from the estate or trust with an entry in box 12, code A, and the S corporation allocated a portion of the box 12, code A, amount to the ESBT. See Schedule K-1 (Form 1120-S), box 15, code F.

Line 11—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 (Form 1041), 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.

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. When you refigure your gain or loss on Form 8949 for AMT, the amount of gain you elected to defer for regular tax purposes due to an investment in a qualified opportunity fund may need to be adjusted on your AMT Form 8949. An adjustment may be required if the regular tax and AMT adjusted basis of the property you sold prior to your investment is different.

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 11 the combined adjustments for the four items, earlier.

Line 12—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 12.