Low-Income Housing Credit                                           OMB No. 1545-0984
Form  8586 
(Rev. December 2016)                                       ▶ Attach to your tax return.                                  Attachment   
Department of the Treasury         ▶ Information about Form 8586 and its instructions is at www.irs.gov/form8586.        Sequence No. 36a
Internal Revenue Service (99)
Name(s) shown on return                                                                                        Identifying number

Part I    Buildings Placed in Service Before 2008
1     Number  of  Forms  8609-A  attached  for  buildings  placed  in  service  before 
      2008  .  .             . . . . .    . . .  .   . .   .     . .   . .    . .   . .  ▶
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 for buildings placed in service before 2008 
      (see instructions)  .        . .    . . .  .   . .   .     . .   . .    . .   . . .   .   . .   . . .  .          3
4     Low-income  housing  credit  for  buildings  placed  in  service  before  2008  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 1d, 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 1d, 
      column (c)             . . . . .    . . .  .   . .   .     . .   . .    . .   . . .   .   . .   . . .  .          7
Part II   Buildings Placed in Service After 2007
8     Number of Forms 8609-A attached for buildings placed in service after  
      2007  .  .             . . . . .    . . .  .   . .   .     . .   . .    . .   . .  ▶
9     Has there been a decrease in the qualified basis of any buildings accounted for on line 8 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)
10    Current year credit from attached Form(s) 8609-A for buildings placed in service after 2007 
      (see instructions)         . . .    . . .  .   . .   .     . .   . .    . .   . . .   .   . .   . . .  .     10
11    Low-income  housing  credit  for  buildings  placed  in  service  after  2007  from  partnerships, 
      S corporations, estates, and trusts.       .   . .   .     . .   . .    . .   . . .   .   . .   . . .  .     11
12    Add lines 10 and 11. Estates and trusts, go to line 13. 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)       . .   .     . .   . .    . .   . . .   .   . .   . . .  .     12

13    Amount allocated to beneficiaries of the estate or trust (see instructions) .         .   . .   . . .  .     13
14    Estates  and  trusts,      subtract  line  13  from  line  12.  Report  this  amount  on  Form  3800,  Part  III, 
      line 4d, column (c) .        . .    . . .  .   . .   .     . .   . .    . .   . . .   .   . .   . . .  .     14
For Paperwork Reduction Act Notice, see General Instructions.                           Cat. No. 63987I                  Form 8586 (Rev. 12-2016)

Form 8586 (Rev. 12-2016)                                                                                                                Page 2 
General Instructions                                                    If the reduction in qualified basis at the close of the tax year also 
                                                                        results in a violation of the minimum set-aside requirement, then no 
Section references are to the Internal Revenue Code unless              credit is allowable for the year.
otherwise noted.
                                                                        Line 3. The credit for the year is figured on Form 8609-A for each 
Future developments. For the latest information about                   building. Attach a copy of each Form 8609-A you completed for the 
developments related to Form 8586 and its instructions, such as         tax year to Form 8586. Enter on line 3 the total credit from attached 
legislation enacted after they were published, go to                    Form(s) 8609-A for buildings placed in service before 2008.
www.irs.gov/form8586.
                                                                        Line 6. Estates or trusts. Allocate the low-income housing credit 
Purpose of Form                                                         on line 5 between the estate or trust and the beneficiaries in the 
Use Form 8586 to claim the low-income housing credit. This general      same proportion as income was allocated and enter the 
business credit is allowed for each new qualified low-income            beneficiaries’ share on line 6.
building placed in service after 1986. Generally, it is taken over a    If the estate or trust is subject to the passive activity rules, include 
10-year credit period.                                                  on line 4 any low-income housing credits attributable to buildings 
The portion of the low-income housing credit attributable to            placed in service before 2008 from passive activities disallowed for 
buildings placed in service after 2007 is not limited by tentative      prior years and carried forward to this year. Complete Form 8582-
minimum tax.                                                            CR, Passive Activity Credit Limitations, to determine the allowed 
Taxpayers, other than partnerships, S corporations, estates, or         credit that must be allocated between the estate or trust and the 
trusts, whose only source of this credit is from those pass-through     beneficiaries. For details, see the Instructions for Form 8582-CR.
entities, are not required to complete or file this form. Instead, they Line 9. A decrease in qualified basis will result in recapture if the 
can report this credit directly on Form 3800.                           qualified basis at the close of the tax year is less than the qualified 
                                                                        basis at the close of the first year of the credit period.
Qualified Low-Income Housing Project                                    If the reduction in qualified basis at the close of the tax year also 
The credit cannot exceed the amount allocated to the building. See      results in a violation of the minimum set-aside requirement, then no 
section 42(h)(1) for details.                                           credit is allowable for the year.
The low-income housing credit can only be claimed for residential       Line 10. The credit for the year is figured on Form 8609-A for each 
rental buildings in low-income housing projects that meet one of the    building. Attach a copy of each Form 8609-A you completed for the 
minimum set-aside tests. For details, see the Instructions for Form     tax year to Form 8586. Enter on line 10 the total credit for attached 
8609, Part II, line 10c.                                                Form(s) 8609-A for buildings placed in service after 2007.
Except for buildings financed with certain tax-exempt bonds, you        Line 13. Estates or trusts. Allocate the low-income housing credit 
may not take a low-income housing credit on a building if it has not    on line 12 between the estate or trust and the beneficiaries in the 
received an allocation from the housing credit agency. No allocation    same proportion as income was allocated and enter the 
is needed when 50% or more of the aggregate basis of the building       beneficiaries’ share on line 13.
and the land on which the building is located is financed with          If the estate or trust is subject to the passive activity rules, include 
certain tax-exempt bonds. The owner still must get a Form 8609          on line 11 any low-income housing credits attributable to buildings 
from the appropriate housing credit agency (with the applicable         placed in service after 2007 from passive activities disallowed for 
items completed, including an assigned BIN). “Land on which the         prior years and carried forward to this year. Complete Form 8582-
building is located” includes only land that is functionally related    CR, Passive Activity Credit Limitations, to determine the allowed 
and subordinate to the qualified low-income building (see               credit that must be allocated between the estate or trust and the 
Regulations sections 1.103-8(a)(3) and 1.103-8(b)(4)(iii)).             beneficiaries. For details, see the Instructions for Form 8582-CR.
Recapture of Credit
There is a 15-year compliance period during which the residential       Paperwork Reduction Act Notice. We ask for the information on 
rental building must continue to meet certain requirements. If, as of   this form to carry out the Internal Revenue laws of the United 
the close of any tax year in this period, there is a reduction in the   States. You are required to give us the information. We need it to 
qualified basis of the building from the previous year, you may have    ensure that you are complying with these laws and to allow us to 
to recapture a part of the credit you have taken. Similarly, you may    figure and collect the right amount of tax.
have to recapture part of the credits taken in previous years upon      You are not required to provide the information requested on a 
certain dispositions of the building or interests therein, unless you   form that is subject to the Paperwork Reduction Act unless the form 
follow the procedures to prevent recapture. See Recapture and           displays a valid OMB control number. Books or records relating to a 
building dispositions in the Instructions for Form 8609-A, Annual       form or its instructions must be retained as long as their contents 
Statement for Low-Income Housing Credit, for details. If you must       may become material in the administration of any Internal Revenue 
recapture credits, use Form 8611, Recapture of Low-Income               law. Generally, tax returns and return information are confidential, 
Housing Credit. See section 42(j) for details.                          as required by section 6103.
Recordkeeping                                                           The time needed to complete and file this form will vary 
                                                                        depending on individual circumstances. The estimated burden for 
Keep a copy of this Form 8586 together with all Forms 8609,             individual taxpayers filing this form is approved under OMB control 
Schedules A (Form 8609) (and successor Forms 8609-A), and               number 1545-0074 and is included in the estimates shown in the 
Forms 8611 for 3 years after the 15-year compliance period ends.        instructions for their individual income tax return. The estimated 
                                                                        burden for all other taxpayers who file this form is shown below.
Specific Instructions
                                                                        Recordkeeping   .   .    .   .  . .   . .  .   . .   .   5 hr., 44 min. 
Line 2. A decrease in qualified basis will result in recapture if the 
qualified basis at the close of the tax year is less than the qualified Learning about the law or the form      .  .   . .   .    . .  52 min. 
basis at the close of the first year of the credit period.              Preparing and sending the form to the IRS      . .   . 2  hr., 11 min.
                                                                        If you have comments concerning the accuracy of these time 
                                                                        estimates or suggestions for making this form simpler, we would be 
                                                                        happy to hear from you. See the instructions for the tax return with 
                                                                        which this form is filed.