Schedule G—Tax Computation

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Schedule G—Tax Computation

Line 1a

2012 tax rate schedule. For tax years beginning in 2012, figure the tax using the Tax Rate Schedule below and enter the tax on line 1a. However, see the Instructions for Schedule D (Form 1041) and the Qualified Dividends Tax Worksheet below.
2012 Tax Rate Schedule
If taxable income is:
Over— But not over— Its tax is: Of the amount over—
$0 $2,400 15% $0
2,400 5,600 $360.00 + 25% 2,400
5,600 8,500 1,160.00 + 28% 5,600
8,500 11,650 1,972.00 + 33% 8,500
11,650 ----- 3,011.50 + 35% 11,650

Schedule D (Form 1041) and Schedule D Tax Worksheet. Use Part V of Schedule D (Form 1041) or the Schedule D Tax Worksheet, whichever is applicable, to figure the estate's or trust's tax if the estate or trust files Schedule D (Form 1041) and has:
  • A net capital gain and any taxable income, or

  • Qualified dividends on line 2b(2) of Form 1041 and any taxable income.

Qualified Dividends Tax Worksheet. If you do not have to complete Part I or Part II of Schedule D and the estate or trust has an amount entered on line 2b(2) of Form 1041 and any taxable income (line 22), then figure the estate's or trust's tax using the worksheet below and enter the tax on line 1a.

Note.

You must reduce the amount you enter on line 2b(2) of Form 1041 by the portion of the section 691(c) deduction claimed on line 19 of Form 1041 if the estate or trust received qualified dividends that were IRD.

Line 1c—AMT. Attach Schedule I (Form 1041) if:
  • The estate or trust must complete Schedule B.

  • The estate or trust claims a credit on line 2b, 2c, or 2d of Schedule G.

  • The estate's or trust's share of alternative minimum taxable income (line 29 of Schedule I (Form 1041)) exceeds $22,500.

Enter the amount from line 56 of Schedule I (Form 1041) on line 1c.

Qualified Dividends Tax Worksheet—Schedule G, line 1a

Caution: Do not use this worksheet if the estate or trust must complete Schedule D (Form 1041).
1. Enter the amount from Form 1041, line 22 1.
2. Enter the amount from Form 1041, line 2b(2) 2.
3. If you are claiming investment interest expense on Form 4952, enter the amount from line 4g; otherwise enter -0- 3.
4. Subtract line 3 from line 2. If zero or less, enter -0- 4.
5. Subtract line 4 from line 1. If zero or less, enter -0- 5.
6. Enter the smaller of the amount on line 1 or $2,400 6.
7. Is the amount on line 5 equal to or more than the amount on line 6?
Yes.
Skip lines 7 and 8; go to line 9 and check the "No" box.
No.
Enter the amount from line 5 7.
8. Subtract line 7 from line 6 8.
9. Are the amounts on lines 4 and 8 the same?
Yes.
Skip lines 9 through 12; go to line 13.
No.
Enter the smaller of line 1 or line 4 9.
10. Enter the amount from line 8 (if line 8 is blank, enter -0-) 10.
11. Subtract line 10 from line 9 11.
12. Multiply line 11 by 15% (.15) 12.
13. Figure the tax on the amount on line 5. Use the 2012 Tax Rate Schedule 13.
14. Add lines 12 and 13 14.
15. Figure the tax on the amount on line 1. Use the 2012 Tax Rate Schedule 15.
16. Tax on all taxable income. Enter the smaller of line 14 or line 15 here and on Sch. G, line 1a 16.

Line 2a—Foreign Tax Credit

Attach Form 1116, Foreign Tax Credit (Individual, Estate, or Trust), if you elect to claim credit for income or profits taxes paid or accrued to a foreign country or a U.S. possession. The estate or trust may claim credit for that part of the foreign taxes not allocable to the beneficiaries (including charitable beneficiaries). Enter the estate's or trust's share of the credit on line 2a. See Pub. 514, Foreign Tax Credit for Individuals, for details.

Line 2b—General Business Credit

Do not include any amounts that are allocated to a beneficiary. Credits that are allocated between the estate or trust and the beneficiaries are listed in the instructions for Schedule K-1, box 13, later. Generally, these credits are apportioned on the basis of the income allocable to the estate or trust and the beneficiaries.

Enter on line 2b the estate's or trust's total general business credit allowed for the current year from Form 3800. The estate or trust must file Form 3800 to claim any of the general business credits. Generally, if the estate's or trust's only source of a credit is from a pass-through entity and the beneficiary is not entitled to an allocable share of a credit, you are not required to complete the source form for that credit. However, certain credits have limitations and special computations that may require you to complete the source form. See the Instructions for Form 3800 for more information.

Line 2c—Credit for Prior Year Minimum Tax

An estate or trust that paid AMT in a previous year may be eligible for a minimum tax credit in 2012. See Form 8801, Credit for Prior Year Minimum Tax—Individuals, Estates, and Trusts.

Line 2d—Bond Credits

Complete and attach Form 8912, Credit to Holders of Tax Credit Bonds, if the estate or trust claims a credit for holding a tax credit bond. Also, be sure to include the credit in interest income.

Line 3—Total Credits

To claim a credit allowable to the estate or trust other than the credits entered on lines 2a through 2d, include the allowable credit in the total for line 3. Complete and attach the appropriate form and write the form number and amount of the allowable credit on the dotted line to the left of the entry space.

Line 5—Recapture Taxes

Recapture of investment credit. If the estate or trust disposed of investment credit property or changed its use before the end of the recapture period, see Form 4255, Recapture of Investment Credit, to figure the recapture tax allocable to the estate or trust. Include the tax on line 5 and write “ICR” on the dotted line to the left of the entry space.

Recapture of low-income housing credit. If the estate or trust disposed of property (or there was a reduction in the qualified basis of the property) on which the low-income housing credit was claimed, see Form 8611, Recapture of Low-Income Housing Credit, to figure any recapture tax allocable to the estate or trust. Include the tax on line 5 and write “LIHCR” on the dotted line to the left of the entry space.

Recapture of qualified electric vehicle credit. If the estate or trust claimed the qualified electric vehicle credit in a prior tax year for a vehicle that ceased to qualify for the credit, part or all of the credit may have to be recaptured. See Regulations section 1.30-1(b) for details. If the estate or trust owes any recapture tax, include it on line 5 and write “QEVCR” on the dotted line to the left of the entry space.

Recapture of the Indian employment credit. Generally, if the estate or trust terminates a qualified employee less than 1 year after the date of initial employment, any Indian employment credit allowed for a prior tax year by reason of wages paid or incurred to that employee must be recaptured. See Form 8845 for details. If the estate or trust owes any recapture tax, include it on line 5 and write “IECR” on the dotted line to the left of the entry space.

Recapture of the new markets credit. If the estate or trust owes any new markets recapture tax, include it on line 5 and write “NMCR” on the dotted line to the left of the entry space. For more information, including how to figure the recapture amount, see section 45D(g).

Recapture of the credit for employer-provided child care facilities. If the facility ceased to operate as a qualified child care facility or there was a change in ownership, part or all of the credit may have to be recaptured. See Form 8882 for details. If the estate or trust owes any recapture tax, include it on line 5 and write “ECCFR” on the dotted line to the left of the entry space.

Recapture of the alternative motor vehicle credit. See section 30B(h)(8) for details. Include the tax on line 5 and write “AMVCR” on the dotted line to the left of the entry space.

Recapture of the alternative fuel vehicle refueling property credit. See section 30C(e)(5) for details. Include the tax on line 5 and write “ARPCR” on the dotted line to the left of the entry space.

Line 6—Household Employment Taxes

If any of the following apply, get Schedule H (Form 1040), Household Employment Taxes, and its instructions, to see if the estate or trust owes these taxes.

  1. The estate or trust paid any one household employee cash wages of $1,800 or more in 2012. Cash wages include wages paid by checks, money orders, etc. When figuring the amount of cash wages paid, combine cash wages paid by the estate or trust with cash wages paid to the household employee in the same calendar year by the household of the decedent or beneficiary for whom the administrator, executor, or trustee of the estate or trust is acting.

  2. The estate or trust withheld federal income tax during 2012 at the request of any household employee.

  3. The estate or trust paid total cash wages of $1,000 or more in any calendar quarter of 2011 or 2012 to household employees.

Note.

See Amended Schedule H (Form 1040) under F. Initial Return, Amended Return, etc., earlier for information on filing an amended Schedule H (Form 1040) for a Form 1041.

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.