Low-Income Housing Credit                                                   OMB No. 1545-0984
Form  (Rev. December 2021)8586                              ▶ Attach to your tax return. 
                                                                                                                              Attachment   
Department of the Treasury                    ▶ Go to www.irs.gov/Form8586 for the latest information.                        Sequence No. 36a
Internal Revenue Service
Name(s) shown on return                                                                                            Identifying number

   1    Number of Forms 8609-A attached  .        . .    .  . . .     .    . . .  .  .   . . .   ▶
   2    Has there been a decrease in the qualified basis of any buildings accounted for on line 1 since the close of the
        preceding tax year?            Yes        No     If “Yes,” enter the building identification numbers (BINs) of the
        buildings that had a decreased basis. If you need more space, attach a schedule.
        (i)                              (ii)                        (iii)                      (iv)
   3    Current year credit from attached Form(s) 8609-A (see instructions)  .    .  .   . . .   .    .   .  . .   . .      3
   4    Low-income housing credit from partnerships, S corporations, estates, and trusts  .      .    .   .  . .   . .      4
   5    Add lines 3 and 4. Estates and trusts, go to line 6. Partnerships and S corporations, stop here and report 
        this amount on Schedule K. All others, stop here and report this amount on Form 3800, Part III, line 4d, 
        column (c)  .          . . . . . .    . . . .    .  . . .     .    . . .  .  .   . . .   .    .   .  . .   . .      5
   6    Amount allocated to beneficiaries of the estate or trust (see instructions)  .   . . .   .    .   .  . .   . .      6
   7    Estates and trusts, subtract line 6 from line 5. Report this amount on Form 3800, Part III, line 4d, column (c)     7
General Instructions                                                         Specific Instructions
Section references are to the Internal Revenue Code unless                   Line 2. A decrease in qualified basis will result in recapture if the 
otherwise noted.                                                             qualified basis at the close of the tax year is less than the qualified 
Future developments. For the latest information about developments           basis at the close of the first year of the credit period.
related to Form 8586 and its instructions, such as legislation enacted         If the reduction in qualified basis at the close of the tax year also 
after they were published, go to www.irs.gov/Form8586.                       results in a violation of the minimum set-aside requirement, then no 
                                                                             credit is allowable for the year.
Purpose of Form                                                              Line 3. The credit for the year is figured on Form 8609-A for each 
Use Form 8586 to claim the low-income housing credit. This general           building. Attach a copy of each Form 8609-A you completed for the 
business credit is allowed for each new qualified low-income                 tax year to Form 8586. Enter on line 3 the total credit for attached 
building placed in service after 1986. Generally, it is taken over a         Form(s) 8609-A.
10-year credit period.                                                       Line 6. Estates or trusts. Allocate the low-income housing credit 
   Taxpayers, other than partnerships, S corporations, estates, or           on line 5 between the estate or trust and the beneficiaries in the 
trusts, whose only source of this credit is from those pass-through          same proportion as income was allocated and enter the 
entities, are not required to complete or file this form. Instead, they      beneficiaries’ share on line 6.
can report this credit directly on Form 3800.                                  If the estate or trust is subject to the passive activity rules, include 
Qualified Low-Income Housing Project                                         on line 4 any low-income housing credits from passive activities 
The credit cannot exceed the amount allocated to the building. See           disallowed for prior years and carried forward to this year. Complete 
section 42(h)(1) for details.                                                Form 8582-CR, Passive Activity Credit Limitations, to determine the 
   The low-income housing credit can only be claimed for residential         allowed credit that must be allocated between the estate or trust and 
rental buildings in low-income housing projects that meet one of the         the beneficiaries. For details, see the Instructions for Form 8582-CR.
minimum set-aside tests. For details, see the instructions for Form 
8609, Part II, line 10c.                                                     Paperwork Reduction Act Notice. We ask for the information on 
   Except for buildings financed with certain tax-exempt bonds, you          this form to carry out the Internal Revenue laws of the United 
may not take a low-income housing credit on a building if it has not         States. You are required to give us the information. We need it to 
received an allocation from the housing credit agency. No allocation         ensure that you are complying with these laws and to allow us to 
is needed when 50% or more of the aggregate basis of the building            figure and collect the right amount of tax.
and the land on which the building is located is financed with                 You are not required to provide the information requested on a 
certain tax-exempt bonds. The owner must still get a Form 8609               form that is subject to the Paperwork Reduction Act unless the form 
from the appropriate housing credit agency (with the applicable              displays a valid OMB control number. Books or records relating to a 
items completed, including an assigned BIN). “Land on which the              form or its instructions must be retained as long as their contents 
building is located” includes only land that is functionally related         may become material in the administration of any Internal Revenue 
and subordinate to the qualified low-income building. (See                   law. Generally, tax returns and return information are confidential, 
Regulations sections 1.103-8(a)(3) and 1.103-8(b)(4)(iii).)                  as required by section 6103.
                                                                               The time needed to complete and file this form will vary 
Recapture of Credit                                                          depending on individual circumstances. The estimated burden for 
There is a 15-year compliance period during which the residential            individual taxpayers filing this form is approved under OMB control 
rental building must continue to meet certain requirements. If, as of        number 1545-0074 and is included in the estimates shown in the 
the close of any tax year in this period, there is a reduction in the        instructions for their individual income tax return. The estimated 
qualified basis of the building from the previous year, you may have         burden for all other taxpayers who file this form is shown below.
to recapture a part of the credit you have taken. Similarly, you may         Recordkeeping   .   .    .   .  . .   . .    . . .   . 5 hr., 44 min.
have to recapture part of the credits taken in previous years upon           Learning about the law or the form      .    . . .   .    . . 52 min.
certain dispositions of the building or interests therein, unless you 
follow the procedures to prevent recapture. See Recapture and                Preparing and sending the form to the IRS      . .   . 2 hr., 11 min.
building dispositions in the Instructions for Form 8609-A, Annual              If you have comments concerning the accuracy of these time 
Statement for Low-Income Housing Credit, for details. If you must            estimates or suggestions for making this form simpler, we would be 
recapture credits, use Form 8611, Recapture of Low-Income                    happy to hear from you. See the instructions for the tax return with 
Housing Credit. See section 42(j) for details.                               which this form is filed.
Recordkeeping
Keep a copy of this Form 8586 together with all Forms 8609, Forms 
8609-A, and Forms 8611 for 3 years after the 15-year compliance 
period ends.
                                                                  Cat. No. 63987I                                           Form 8586 (Rev. 12-2021)