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CAUTION

Don’t make this adjustment for expenditures for which you 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 16—Long-Term Contracts For AMT purposes, the percentage of completion method of accounting described in section 460(b) must generally be used. However, this rule doesn't apply to any home construction contract (as defined in section 460(e)(6)).

2025 Instructions for Schedule I (Form 1041) 5

Line 20—Intangible Drilling Costs (IDCs) Preference

amount separately for each property and include on line 21 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 21 only positive amounts.

• 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 13.

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 11 instead of line 21.

• 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 21.

• Related adjustments. AMT adjustments and tax preference items may affect deductions that are based