Part III—Taxes Imposed on Undistributed Net Income

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Part III—Taxes Imposed on Undistributed Net Income

For the regular tax computation, if there is a capital gain, complete lines 18 through 25 for each throwback year. If the trustee elected the alternative tax on capital gains, complete lines 26 through 31 instead of lines 18 through 25 for each applicable year. If there is no capital gain for any year, or there is a capital loss for every year, enter on line 9 the amount of the tax for each year identified in the instruction for line 18 and do not complete Part III. If the trust received an accumulation distribution from another trust, see Regulations section 1.665(b)-1A.

Note.

The alternative tax on capital gains was repealed for tax years beginning after December 31, 1978. The maximum rate on net capital gain for 1981, 1987, and 1991 through 2011 is not an alternative tax for this purpose.

Line 18—Regular Tax

Enter the applicable amounts as follows:

Throwback year(s) Amount from line
1969–1976 Form 1041, page 1, line 24
1977 Form 1041, page 1, line 26
1978–1979 Form 1041, line 27
1980–1984 Form 1041, line 26c
1985–1986 Form 1041, line 25c
1987 Form 1041, line 22c
1988–2011 Form 1041, Schedule G, line 1a

Line 19—Trust's Share of Net Short-Term Gain

For each throwback year, enter the smaller of the capital gain from the two lines indicated. If there is a capital loss or a zero on either or both of the two lines indicated, enter zero on line 19.

Throwback year(s) Amount from line
1969–1970 Schedule D, line 10, column 2, or
Schedule D, line 12, column 2
1971–1978 Schedule D, line 14, column 2, or
Schedule D, line 16, column 2
1979 Schedule D, line 18, column (b), or
Schedule D, line 20, column (b)
1980–1981 Schedule D, line 14, column (b), or
Schedule D, line 16, column (b)
1982 Schedule D, line 16, column (b), or
Schedule D, line 18, column (b)
1983–1996 Schedule D, line 15, column (b), or
Schedule D, line 17, column (b)
1997–2002 Schedule D, line 14, column (2), or
Schedule D, line 16, column (2)
2003 Schedule D, line 14a, column (2), or
Schedule D, line 16a, column (2)
2004–2011 Schedule D, line 13, column (2), or
Schedule D, line 15, column (2)

Line 20—Trust's Share of Net Long-Term Gain

Enter the applicable amounts as follows:

Throwback year(s) Amount from line
1969–1970 50% of Schedule D, line 13(e)
1971–1977 50% of Schedule D, line 17(e)
1978 Schedule D, line 17(e), or line
31, whichever is applicable,
less Form 1041, line 23
1979 Schedule D, line 25 or line 27,
whichever is applicable, less
Form 1041, line 23
1980–1981 Schedule D, line 21, less
Schedule D, line 22
1982 Schedule D, line 23, less
Schedule D, line 24
1983–1986 Schedule D, line 22, less
Schedule D, line 23
1987–1996 Schedule D, the smaller
of any gain on line 16
or line 17, column (b)
1997–2001 Schedule D, the smaller
of any gain on line 15c or
line 16, column (2)
2002 Schedule D, the smaller
of any gain on line 15a or
line 16, column (2)
2003 Schedule D, the smaller
of any gain on line 15a or
line 16a, column (2)
2004–2011 Schedule D, the smaller
of any gain on line 14a
or line 15, column (2)

Line 22—Taxable Income

Enter the applicable amounts as follows:

Throwback year(s) Amount from line
1969–1976 Form 1041, page 1, line 23
1977 Form 1041, page 1, line 25
1978–1979 Form 1041, line 26
1980–1984 Form 1041, line 25
1985–1986 Form 1041, line 24
1987 Form 1041, line 21
1988–1996 Form 1041, line 22
1997 Form 1041, line 23
1998–2011 Form 1041, line 22

Line 26—Tax on Income Other Than Long-Term Capital Gain

Enter the applicable amounts as follows:

Throwback year(s) Amount from line
1969 Schedule D, line 20
1970 Schedule D, line 19
1971 Schedule D, line 50
1972–1975 Schedule D, line 48
1976–1978 Schedule D, line 27

Line 27—Trust's Share of Net Short-Term Gain

If there is a loss on any of the following lines, enter zero on line 27 for the applicable throwback year. Otherwise, enter the applicable amounts as follows:

Throwback year(s) Amount from line
1969–1970 Schedule D, line 10, column 2
1971–1978 Schedule D, line 14, column 2

Line 28—Trust's Share of Taxable Income Less Section 1202 Deduction

Enter the applicable amounts as follows:

Throwback year(s) Amount from line
1969 Schedule D, line 19
1970 Schedule D, line 18
1971 Schedule D, line 38
1972–1975 Schedule D, line 39
1976–1978 Schedule D, line 21