Form 1041 Form 1041 U.S. Income Tax Return for Estates and Trusts

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I.R.S. SPECIFICATIONS

TO BE REMOVED BEFORE PRINTING

INSTRUCTIONS TO PRINTERS
FORM 1041, PAGE 1 of 4
MARGINS: TOP 13mm (1⁄ 2 "), CENTER SIDES.
PAPER: WHITE WRITING, SUB. 20.
FLAT SIZE: 216 mm (81⁄ 2 ") 3 559mm (22"),
FOLD TO 216 mm (81⁄ 2 ") 3 279 mm (11")

Date

Action

Date

PRINTS: HEAD TO FOOT
INK: BLACK

O.K. to print

PERFORATE: ON FOLD

Revised proofs
requested

APPROVED AS CORRECTED
DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT
JC 11/10/2007

Signature

Cumulative Changes Copy/ OMB Copy
Deletions are marked with small yellow boxes with a red D;
Additions are in blue boxes.
Year changes from 2006 to 2007 & page number changes are
highlighted in yellow.
Department of the Treasury—Internal Revenue Service

Form

Deleted line about:
Pooled mortgage
account (see page
15 of the
instructions)

1041

A

Type of entity (see instr.):
Decedent’s estate

Complex trust

Employer identification number

Name and title of fiduciary

D

Date entity created

Number, street, and room or suite no. (If a P.O. box, see page 14 of the instructions.)

E

Nonexempt charitable and splitinterest trusts, check applicable
boxes (see page 15 of the instr.):

Bankruptcy estate–Ch. 7

Described in section 4947(a)(1)

City or town, state, and ZIP code

Pooled income fund

Not a private foundation
Described in section 4947(a)(2)

Check
Initial return
Final return
applicable
boxes:
Change in fiduciary
©
G Check here if the estate or filing trust made a section 645 election

Amended return
Change in fiduciary’s name

1
2a
b
3
4
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8
9

Interest income
Total ordinary dividends
Qualified dividends allocable to: (1) Beneficiaries
(2) Estate or trust
Business income or (loss). Attach Schedule C or C-EZ (Form 1040)
Capital gain or (loss). Attach Schedule D (Form 1041)
Rents, royalties, partnerships, other estates and trusts, etc. Attach Schedule E (Form 1040)
Farm income or (loss). Attach Schedule F (Form 1040)
Ordinary gain or (loss). Attach Form 4797
Other income. List type and amount
©
Total income. Combine lines 1, 2a, and 3 through 8

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13
14
15a
b
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17
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19
20
21

Interest. Check if Form 4952 is attached ©
Taxes
Fiduciary fees
Charitable deduction (from Schedule A, line 7)
Attorney, accountant, and return preparer fees
Other deductions not subject to the 2% floor (attach schedule)
Allowable miscellaneous itemized deductions subject to the 2% floor
©
Add lines 10 through 15b
17
Adjusted total income or (loss). Subtract line 16 from line 9
Income distribution deduction (from Schedule B, line 15). Attach Schedules K-1 (Form 1041)
Estate tax deduction including certain generation-skipping taxes (attach computation)
Exemption
©
Add lines 18 through 20

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23
24
b
c
d
e

Taxable income. Subtract line 21 from line 17. If a loss, see page 22 of the instructions
Total tax (from Schedule G, line 7)
Payments: a 2007 estimated tax payments and amount applied from 2006 return
Estimated tax payments allocated to beneficiaries (from Form 1041-T)
Subtract line 24b from line 24a
Tax paid with Form 7004 (see page 23 of the instructions)
Federal income tax withheld. If any is from Form(s) 1099, check ©
Other payments: f Form 2439
; g Form 4136
; Total ©
©
Total payments. Add lines 24c through 24e, and 24h
Estimated tax penalty (see page 23 of the instructions)
Tax due. If line 25 is smaller than the total of lines 23 and 26, enter amount owed
Overpayment. If line 25 is larger than the total of lines 23 and 26, enter amount overpaid
Amount of line 28 to be: a Credited to 2008 estimated tax ©
; b Refunded ©

Tax and Payments

Income

F

Deductions

Number of Schedules K-1
attached (see
instructions) ©

25
26
27
28
29

Sign
Here

, 20

C

Grantor type trust
Bankruptcy estate–Ch. 11

, 2007, and ending

Name of estate or trust (If a grantor type trust, see page 14 of the instructions.)

Qualified disability trust
ESBT (S portion only)

OMB No. 1545-0092

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For calendar year 2007 or fiscal year beginning

Simple trust

B

2007

U.S. Income Tax Return for Estates and Trusts

Change in trust’s name

Change in fiduciary’s address

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2a

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15a
15b
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24a
24b
24c
24d
24e
24h
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Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true,
correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.

©

Paid
Preparer’s
Use Only

May the IRS discuss this return
with the preparer shown below
(see instr.)?
Yes
No

©

Signature of fiduciary or officer representing fiduciary

©

EIN of fiduciary if a financial institution
Date

Preparer’s
signature

Firm’s name (or
yours if self-employed),
address, and ZIP code

Date

©

For Privacy Act and Paperwork Reduction Act Notice, see the separate instructions.

Preparer’s SSN or PTIN

Check if
self-employed
EIN
Phone no.

(

Cat. No. 11370H

)
Form

1041

(2007)

3
I.R.S. SPECIFICATIONS

TO BE REMOVED BEFORE PRINTING

INSTRUCTIONS TO PRINTERS
FORM 1041, PAGE 2 of 4
MARGINS: TOP 13 mm (1⁄ 2 "), CENTER SIDES.
PAPER: WHITE WRITING, SUB. 20.
FLAT SIZE: 216 mm (81⁄ 2 ") 3 559 mm (22")
FOLD TO: 216 mm (81⁄ 2 ") 3 279 mm (11")

PRINTS: HEAD TO FOOT
INK: BLACK
PERFORATE: ON TOP FOLD

DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT

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Form 1041 (2007)

Schedule A
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2
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5
6
7

Amounts paid or permanently set aside for charitable purposes from gross income (see page 23)
Tax-exempt income allocable to charitable contributions (see page 24 of the instructions)
Subtract line 2 from line 1
Capital gains for the tax year allocated to corpus and paid or permanently set aside for charitable purposes
Add lines 3 and 4
Section 1202 exclusion allocable to capital gains paid or permanently set aside for charitable
purposes (see page 24 of the instructions)
Charitable deduction. Subtract line 6 from line 5. Enter here and on page 1, line 13

Schedule B

Income Distribution Deduction

Income required to be distributed currently
Other amounts paid, credited, or otherwise required to be distributed
Total distributions. Add lines 9 and 10. If greater than line 8, see page 26 of the instructions
Enter the amount of tax-exempt income included on line 11
Tentative income distribution deduction. Subtract line 12 from line 11
Tentative income distribution deduction. Subtract line 2 from line 7. If zero or less, enter -0Income distribution deduction. Enter the smaller of line 13 or line 14 here and on page 1, line 18
Tax Computation (see page 26 of the instructions)
Schedule G
25
1a
1 Tax: a Tax on taxable income (see page 26 of the instructions)
25
1b
b Tax on lump-sum distributions. Attach Form 4972
1c
c Alternative minimum tax (from Schedule I, line 56)

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15

©

1d

©

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7

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15

d Total. Add lines 1a through 1c
2a Foreign tax credit. Attach Form 1116
b Other nonbusiness credits (attach schedule)
c General business credit. Enter here and check which forms are attached:
Forms (specify) ©
Form 3800
d Credit for prior year minimum tax. Attach Form 8801
3 Total credits. Add lines 2a through 2d
4 Subtract line 3 from line 1d. If zero or less, enter -0-.
5 Recapture taxes. Check if from:
Form 4255
Form 8611
6 Household employment taxes. Attach Schedule H (Form 1040)
7 Total tax. Add lines 4 through 6. Enter here and on page 1, line 23

24

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7

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2
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5

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25

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7

25

2a
2b
2c
2d

©

Other Information
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2
3

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5
6
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9

2

1
2
3
4
5

Adjusted total income (see page 24 of the instructions)
Adjusted tax-exempt interest
Total net gain from Schedule D (Form 1041), line 15, column (1) (see page 24 of the instructions)
Enter amount from Schedule A, line 4 (minus any allocable section 1202 exclusion)
Capital gains for the tax year included on Schedule A, line 1 (see page 24 of the instructions)
Enter any gain from page 1, line 4, as a negative number. If page 1, line 4, is a loss, enter the
loss as a positive number
Distributable net income. Combine lines 1 through 6. If zero or less, enter -0If a complex trust, enter accounting income for the tax year as
8
determined under the governing instrument and applicable local law

1
2
3
4
5
6
D: (DNI)

Page

Charitable Deduction. Do not complete for a simple trust or a pooled income fund.

Yes No

Did the estate or trust receive tax-exempt income? If “Yes,” attach a computation of the allocation of expenses
Enter the amount of tax-exempt interest income and exempt-interest dividends © $
Did the estate or trust receive all or any part of the earnings (salary, wages, and other compensation) of any
individual by reason of a contract assignment or similar arrangement?
At any time during calendar year 2007, did the estate or trust have an interest in or a signature or other authority
over a bank, securities, or other financial account in a foreign country?
See page 28 of the instructions for exceptions and filing requirements for Form TD F 90-22.1. If “Yes,” enter
the name of the foreign country ©
During the tax year, did the estate or trust receive a distribution from, or was it the grantor of, or transferor to,
a foreign trust? If “Yes,” the estate or trust may have to file Form 3520. See page 28 of the instructions
Did the estate or trust receive, or pay, any qualified residence interest on seller-provided financing? If “Yes,”
see page 28 for required attachment
©
If this is an estate or a complex trust making the section 663(b) election, check here (see page 28)
©
To make a section 643(e)(3) election, attach Schedule D (Form 1041), and check here (see page 28)
If the decedent’s estate has been open for more than 2 years, attach an explanation for the delay in closing the estate, and check here ©
Are any present or future trust beneficiaries skip persons? See page 28 of the instructions
Form

1041

(2007)

3
I.R.S. SPECIFICATIONS

TO BE REMOVED BEFORE PRINTING

INSTRUCTIONS TO PRINTERS
FORM 1041, PAGE 3 of 4
MARGINS: TOP 13 mm (1⁄ 2 "), CENTER SIDES.
PAPER: WHITE WRITING, SUB. 20.
FLAT SIZE: 216 mm (81⁄ 2 ") 3 559 mm (22")
FOLD TO: 216 mm (81⁄ 2 ") 3 279 mm (11")

PRINTS: HEAD TO FOOT
INK: BLACK
PERFORATE: ON TOP FOLD

DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT

29
Form 1041 (2007)

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Page

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Schedule I
Alternative Minimum Tax (AMT) (see pages 28 through 35 of the instructions)
Part I—Estate’s or Trust’s Share of Alternative Minimum Taxable Income
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2
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7
8
9
10
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12
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14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29

Adjusted total income or (loss) (from page 1, line 17)
Interest
Taxes
Miscellaneous itemized deductions (from page 1, line 15b)
Refund of taxes
Depletion (difference between regular tax and AMT)
Net operating loss deduction. Enter as a positive amount
Interest from specified private activity bonds exempt from the regular tax
Qualified small business stock (see page 30 of the instructions)
Exercise of incentive stock options (excess of AMT income over regular tax income)
Other estates and trusts (amount from Schedule K-1 (Form 1041), box 12, code A)
Electing large partnerships (amount from Schedule K-1 (Form 1065-B), box 6)
Disposition of property (difference between AMT and regular tax gain or loss)
Depreciation on assets placed in service after 1986 (difference between regular tax and AMT)
Passive activities (difference between AMT and regular tax income or loss)
Loss limitations (difference between AMT and regular tax income or loss)
Circulation costs (difference between regular tax and AMT)
Long-term contracts (difference between AMT and regular tax income)
Mining costs (difference between regular tax and AMT)
Research and experimental costs (difference between regular tax and AMT)
Income from certain installment sales before January 1, 1987
Intangible drilling costs preference
Other adjustments, including income-based related adjustments
Alternative tax net operating loss deduction (See the instructions for the limitation that applies.)
Adjusted alternative minimum taxable income. Combine lines 1 through 24
Note: Complete Part II below before going to line 26.
26
Income distribution deduction from Part II, line 44
27
Estate tax deduction (from page 1, line 19)

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2
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5 (
6
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20
21 (
22
23
24 (
25

Add lines 26 and 27
Estate’s or trust’s share of alternative minimum taxable income. Subtract line 28 from line 25
If line 29 is:
● $22,500 or less, stop here and enter -0- on Schedule G, line 1c. The estate or trust is not
liable for the alternative minimum tax.
● Over $22,500, but less than $165,000, go to line 45.
● $165,000 or more, enter the amount from line 29 on line 51 and go to line 52.

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29

)

)

)

Part II—Income Distribution Deduction on a Minimum Tax Basis
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44

Adjusted alternative minimum taxable income (see page 34 of the instructions)
Adjusted tax-exempt interest (other than amounts included on line 8)
Total net gain from Schedule D (Form 1041), line 15, column (1). If a loss, enter -0Capital gains for the tax year allocated to corpus and paid or permanently set aside for charitable
purposes (from Schedule A, line 4)
Capital gains paid or permanently set aside for charitable purposes from gross income (see page
34 of the instructions)
Capital gains computed on a minimum tax basis included on line 25
Capital losses computed on a minimum tax basis included on line 25. Enter as a positive amount
Distributable net alternative minimum taxable income (DNAMTI). Combine lines 30 through 36.
If zero or less, enter -0Income required to be distributed currently (from Schedule B, line 9)
Other amounts paid, credited, or otherwise required to be distributed (from Schedule B, line 10)
Total distributions. Add lines 38 and 39
Tax-exempt income included on line 40 (other than amounts included on line 8)
Tentative income distribution deduction on a minimum tax basis. Subtract line 41 from line 40
Tentative income distribution deduction on a minimum tax basis. Subtract line 31 from line 37.
If zero or less, enter -0Income distribution deduction on a minimum tax basis. Enter the smaller of line 42 or
line 43. Enter here and on line 26

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31
32
33
34
35 (
36

)

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44
Form

1041

(2007)

3
I.R.S. SPECIFICATIONS

TO BE REMOVED BEFORE PRINTING

INSTRUCTIONS TO PRINTERS
FORM 1041, PAGE 4 of 4
MARGINS: TOP 13 mm (1⁄ 2 "), CENTER SIDES.
PAPER: WHITE WRITING, SUB. 20.
FLAT SIZE: 216 mm (81⁄ 2 ") 3 559 mm (22")
FOLD TO: 216 mm (81⁄ 2 ") 3 ^279 mm (11")

PRINTS: HEAD TO FOOT
INK: BLACK
PERFORATE: ON TOP FOLD

DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT

Form 1041 (2007)

Page

Part III—Alternative Minimum Tax
45
46
47
48
49
50
51
52

53
54
55
56

Exemption amount
46
Enter the amount from line 29
$75,000
00
47
Phase-out of exemption amount
48
Subtract line 47 from line 46. If zero or less, enter -0Multiply line 48 by 25% (.25)
Subtract line 49 from line 45. If zero or less, enter -0Subtract line 50 from line 46
Go to Part IV of Schedule I to figure line 52 if the estate or trust has qualified dividends or has
a gain on lines 14a and 15 of column (2) of Schedule D (Form 1041) (as refigured for the AMT,
if necessary). Otherwise, if line 51 is—
● $175,000 or less, multiply line 51 by 26% (.26).
● Over $175,000, multiply line 51 by 28% (.28) and subtract $3,500 from the result
Alternative minimum foreign tax credit (see page 34 of the instructions)
Tentative minimum tax. Subtract line 53 from line 52
Enter the tax from Schedule G, line 1a (minus any foreign tax credit from Schedule G, line 2a)
Alternative minimum tax. Subtract line 55 from line 54. If zero or less, enter -0-. Enter here and
on Schedule G, line 1c

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45

$22,500

00

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50
51

52
53
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55
56

Part IV—Line 52 Computation Using Maximum Capital Gains Rates
Caution: If you did not complete Part V of Schedule D (Form 1041), the Schedule D Tax Worksheet,
or the Qualified Dividends Tax Worksheet, see page 35 of the instructions before completing this part.

57

57

Enter the amount from line 51

58

Enter the amount from Schedule D (Form 1041), line 22, line 13 of the
Schedule D Tax Worksheet, or line 4 of the Qualified Dividends Tax
Worksheet, whichever applies (as refigured for the AMT, if necessary)

58

Enter the amount from Schedule D (Form 1041), line 14b, column (2)
(as refigured for the AMT, if necessary). If you did not complete
Schedule D for the regular tax or the AMT, enter -0-

59

59

60

61
62
63
64
65

66
67
68
69
70
71
72
73
74
75
76

If you did not complete a Schedule D Tax Worksheet for the regular tax
or the AMT, enter the amount from line 58. Otherwise, add lines 58 and
59 and enter the smaller of that result or the amount from line 10 of the
60
Schedule D Tax Worksheet (as refigured for the AMT, if necessary)
Enter the smaller of line 57 or line 60
Subtract line 61 from line 57
If line 62 is $175,000 or less, multiply line 62 by 26% (.26). Otherwise, multiply line 62 by
©
28% (.28) and subtract $3,500 from the result
$2,150
64
00
Maximum amount subject to the 5% rate
Enter the amount from line 23 of Schedule D (Form 1041), line 14 of
the Schedule D Tax Worksheet, or line 5 of the Qualified Dividends
Tax Worksheet, whichever applies (as figured for the regular tax). If
you did not complete Schedule D or either worksheet for the regular
65
tax, enter -066
Subtract line 65 from line 64. If zero or less, enter -067
Enter the smaller of line 57 or line 58
68
Enter the smaller of line 66 or line 67
©
Multiply line 68 by 5% (.05)
70
Subtract line 68 from line 67
©
Multiply line 70 by 15% (.15)
If line 59 is zero or blank, skip lines 72 and 73 and go to line 74. Otherwise, go to line 72.
72
Subtract line 67 from line 61
©
Multiply line 72 by 25% (.25)
Add lines 63, 69, 71, and 73
If line 57 is $175,000 or less, multiply line 57 by 26% (.26). Otherwise, multiply line 57 by
28% (.28) and subtract $3,500 from the result
Enter the smaller of line 74 or line 75 here and on line 52

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Form

Printed on recycled paper

1041

(2007)