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CAUTION

Don’t make an adjustment on line 21 for an item you refigured on another line of Schedule I (for example, line 5).

Business interest limitation. Complete an AMT Form 8990 using amounts adjusted for AMT. Enter the difference between the AMT and regular tax allowable interest expense. If line 30 of the AMT Form 8990 is more than the amount on line 30 of the regular tax Form 8890, enter the difference as a negative amount.

Line 22—Alternative Tax Net Operating Loss Deduction (ATNOLD) 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 2025, include any ATNOL carryover that was reported in box 11, code F, 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. For this purpose, figure a tentative amount for line 5 of Schedule I (Form 1041) by treating line 22 as if it were zero. Then, figure a tentative total by combining lines 1–21 of Schedule I (Form 1041) using the line 5 tentative amount. 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 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 carry back 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), plus

2. The smaller of:

TIP

If you elected under section 172(b)(3) to forego the carryback period for regular tax purposes, the election will also apply for the AMT.

Line 27—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 27 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 otherwise enter on line 27, enter that amount instead and write “Sch. Q” on the dotted line next to line 27.

ESBTs. Enter the amount from line 27 on line 49, and go to line 50.