Inst 1041_Qualified Mortgage Insurance Premium Deduction Worksheet

Qualified Mortgage Insurance Premiums Deduction Worksheet

Keep for Your Records

1.

Enter the total premiums the estate or trust paid in 2021 for qualified mortgage insurance for a contract issued after
December 31, 2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2.

Enter the estate's or trust's AGI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2.

3.

Enter $100,000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3.

4.

Is the amount on line 2 more than the amount on line 3?
No.

The deduction is not limited. Include the amount from line 1 above on Form 1041,
line 10. Don’t complete the rest of this worksheet.

Yes.

Subtract line 3 from line 2. If the result is not a multiple of $1,000, increase it to the next
multiple of $1,000. For example, increase $425 to $1,000, increase $2,025 to $3,000,
etc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1.

4.

5.

Divide line 4 by $10,000. Enter the result as a decimal. If the result is 1.0 or more, enter 1.0 . . . . . . . . . . . . . . . . . . . . . .

5.    .

6.

Multiply line 1 by line 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6.

7.

Qualified mortgage insurance premiums deduction. Subtract line 6 from line 1. Enter the result here and include the
amount on Form 1041, line 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7.

more than $100,000, its deduction is
limited and you must use the Qualified
Mortgage Insurance Premiums
Deduction Worksheet above to figure
the deduction. See Adjusted gross
income (AGI), later, for information on
figuring AGI.

Line 11—Taxes
The deduction for state and
local taxes is limited to $10,000.
CAUTION The limitation applies to the total
of your state and local income taxes (or
general sales taxes, if elected instead of
income taxes), real estate taxes, and
personal property taxes. The limitation
does not apply to foreign income taxes,
and state and local taxes paid or
accrued in carrying on a trade or
business or for the production of
income.

!

Enter any deductible taxes paid or
incurred during the tax year that aren't
deductible elsewhere on Form 1041.
Deductible taxes include the following:
• State and local income taxes. You
can deduct state and local income taxes
unless you elect to deduct state and
local general sales taxes. You can't
deduct both.
• State and local general sales taxes.
You can elect to deduct state and local
general sales taxes instead of state and
local income taxes. Generally, you can
elect to deduct the actual state and local
general sales taxes (including
compensating use taxes) you paid in
2021 if the tax rate was the same as the
general sales tax rate. However, sales
taxes on food, clothing, medical
supplies, and motor vehicles are
deductible as a general sales tax even if

the tax rate was less than the general
sales tax rate. Sales taxes on motor
vehicles are also deductible as a
general sales tax if the tax rate was
more than the general sales tax rate, but
the tax is deductible only up to the
amount of tax that would have been
imposed at the general sales tax rate.
Motor vehicles include cars,
motorcycles, motor homes, recreational
vehicles, sport utility vehicles, trucks,
vans, and off-road vehicles. Also
include any state and local general
sales taxes paid for a leased motor
vehicle.
Do not include sales taxes paid on
items used in a trade or business. An
estate or trust cannot use the Optional
Sales Tax Tables for individuals in the
Instructions for Schedule A (Form
1040), Itemized Deductions, to figure its
deduction.
• State and local real property taxes.
Note. The deduction for foreign real
property taxes is no longer allowed.
• State and local personal property
taxes.
• Foreign or U.S. possession income
taxes. You may want to take a credit for
the tax instead of a deduction. See the
instructions for Schedule G, Part I,
line 2a, later, for more details.
• The generation-skipping transfer
(GST) tax imposed on income
distributions.
Don't deduct:
• Federal income taxes;
• Estate, inheritance, legacy,
succession, and gift taxes;
• Federal duties and excise taxes; or
• Foreign real property taxes.
-24-

Safe harbor for certain charitable
contributions made in exchange for
a state or local tax credit. If you
made a charitable contribution in
exchange for a state or local tax credit
and your charitable contribution
deduction must be reduced as a result
of receiving or expecting to receive the
tax credit, you may qualify for a safe
harbor that allows you to treat some or
all of the disallowed charitable
contribution as a payment of state and
local taxes. The safe harbor applies if
you meet the following conditions.
1. You made a cash contribution to
an entity described in section 170(c).
2. In return for the cash contribution,
you received a state or local tax credit.
3. You must reduce your charitable
contribution deduction by the amount of
the state or local tax credit you receive.
If you meet these conditions, and to the
extent you apply the state or local tax
credit to this or a prior year's state or
local tax liability, you may include this
amount on line 11. To the extent you
apply a portion of the credit to offset
your state or local tax liability in a
subsequent year (as permitted by law),
you may treat this amount as state or
local tax paid in the year the credit is
applied. For more information about this
safe harbor and examples, see Notice
2019-12.

Line 12—Fiduciary Fees

Enter the deductible fees paid or
incurred to the fiduciary for
administering the estate or trust during
the tax year.

Instructions for Form 1041 (2021)