- 2 -
|
Form 8611 (Rev. 12-2021) Page 2
General Instructions Note: If the decrease in qualified basis is • The qualified basis is reduced because
because of a change in the amount for of a casualty loss, provided the property
Section references are to the Internal which you are financially at risk on the is restored or replaced within a
Revenue Code. building, then you must first recalculate reasonable period.
the amount of credit taken in prior years
Future Developments under section 42(k) before you calculate Recordkeeping
For the latest information about the recapture amount on this form. In order to verify changes in qualified
developments related to Form 8611 and To complete this form you will need basis from year to year, keep a copy of
its instructions, such as legislation copies of the following forms that you all Forms 8586, 8609, 8609-A (or
enacted after they were published, go to have filed. predecessor, Schedule A (Form 8609)),
8611, and 8693 for 3 years after the
www.irs.gov/Form8611. • Form 8586, Low-Income Housing 15-year compliance period ends.
Purpose of Form Credit (and Form 3800, General
Business Credit, if applicable);
Use this form if you must recapture part Specific Instructions
of the low-income housing credit you • Form 8609, Low-Income Housing
claimed in previous years because the Credit Allocation and Certification (or Note: If recapture is passed through
qualified basis decreased from one year predecessor, Form 8609, Low-Income from a flow-through entity (partnership,
to the next or you disposed of a building, Housing Credit Allocation Certification); S corporation, estate, or trust), skip lines
1–7 and go to line 8. However, section
or your interest therein, and you did not • Form 8609-A, Annual Statement for 42(j)(5) partnerships must complete lines
follow the procedures that would have Low-Income Housing Credit (or 1 through 7.
prevented recapture of the credit. predecessor, Schedule A (Form 8609),
Decrease in qualified basis. The Annual Statement); and Item F. If the building is financed with
tax-exempt bonds, furnish the following
decrease may result from a change in • Form 8611. information: (1) name of the entity that
the eligible basis or the applicable Note: Flow-through entities must give issued the bond (not the name of the
fraction. For example, a decrease in partners, shareholders, and beneficiaries entity receiving the benefit of the
qualified basis may exist when units are the information that is reported in items financing); (2) date of issue, generally the
not occupied by income-qualified C, D, E, and F of Form 8611. first date there is a physical exchange of
tenants under section 42(i)(3)(A)(ii), units the bonds for the purchase price;
are not rent restricted under section Recapture does not apply if: (3) name of the issue, or if not named,
42(g)(2), units are not suitable for • You disposed of the building or an other identification of the issue; and
occupancy as described in section 42(i) ownership interest in it and you satisfy the (4) CUSIP number of the bond with the
(3)(B)(ii), or the project no longer meets requirements for avoiding recapture as latest maturity date. If the issue does not
the minimum set-aside requirements of outlined earlier under Building dispositions; have a CUSIP number, enter “None.”
section 42(g)(1).
• You disposed of an ownership interest Line 1. Enter the total credits claimed on
Building dispositions. Disposing of a in a building you held through a the building for all prior years from all
building or an interest therein will partnership to which section 42(j)(5) Forms 8586 (before reduction due to the
generate a credit recapture, unless it is applies; tax liability limit) you have filed. Prior to
reasonably expected that the building will the December 2006 revision of Form
continue to be operated as a qualified • The decrease in qualified basis does
low-income building for the remainder of not exceed the additions to qualified 8586, the credits (before reduction due
the building’s compliance period. basis for which credits were allowable in to the tax liability limit) were reported in
years after the first year of the credit Part I. Do not include credits taken by a
See section 42(j) for more information. period; or previous owner.
Line 2 Worksheet (*Line reference is to Form 8609-A (or predecessor, Schedule A (Form 8609)).)
a Enter the amount from line 10* . . . . . . . . . . . . . . . . . . . . . . . . . a
b Multiply aby 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . b
c Enter the amount from line 11* . . . . . . . . . . . . . . . . . . . . . . . . . c
d Subtract cfrom b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . d
e Enter decimal amount figured in step of1 the instructions for line 14*. If line 14* does not apply to you,
enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . e
f Multiply dby e . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . f
g Subtract ffrom d . . . . . . . . . . . . . . . . . . . . . . . . . . . . . g
h Divide line 16* by line 15*. Enter the result here . . . . . . . . . . . . . . . . . . . h
i Multiply gby .hEnter this amount on line 2. (If more than one worksheet is completed, add the amounts
on ifrom all worksheets and enter the total on line 2.) . . . . . . . . . . . . . . . . . i
|