Line 7—Total Tax

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Line 7—Total Tax

Tax on ESBTs. Attach the tax computation to the return. To the left of the line 7 entry space, write “Sec. 641(c)” and the amount of tax on the S corporation items. Include this amount in the total tax on line 7.

See Electing Small Business Trusts (ESBTs), earlier, for the special tax computation rules that apply to the portion of an ESBT consisting of stock in one or more S corporations.

Interest on deferred tax attributable to installment sales of certain timeshares and residential lots and certain nondealer real property installment obligations. If an obligation arising from the disposition of real property to which section 453(l) or 453A applies is outstanding at the close of the year, the estate or trust must include the interest due under section 453(l)(3)(B) or 453A(c), whichever is applicable, in the amount to be entered on line 7 of Schedule G, Form 1041, with the notation “Section 453(l) interest” or “Section 453A(c) interest,” whichever is applicable. Attach a schedule showing the computation.

Form 4970, Tax on Accumulation Distribution of Trusts. Include on this line any tax due on an accumulation distribution from a trust. To the left of the entry space, write “From Form 4970” and the amount of the tax.

Form 8697, Interest Computation Under the Look-Back Method for Completed Long-Term Contracts. Include the interest due under the look-back method of section 460(b)(2).
To the left of the entry space, write “From Form 8697” and the amount of interest due.

Form 8866, Interest Computation Under the Look-Back Method for Property Depreciated Under the Income Forecast Method. Include the interest due under the look-back method of section 167(g)(2). To the left of the entry space, write “From Form 8866” and the amount of interest due.

Interest on deferral of gain from certain constructive ownership transactions. Include the interest due under section 1260(b) on any deferral of gain from certain constructive ownership transactions. To the left of the entry space, write “1260(b)” and the amount of interest due.

Form 5329, Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts. If the estate or trust fails to receive the minimum distribution under section 4974, use Form 5329 to pay the excise tax. To the left of the entry space, write “From Form 5329” and the amount of the tax.