Federal Free Printable Form 8586 (Rev. December 2016) for 2017 Federal Low-Income Housing Credit

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Low-Income Housing Credit
Form 8586 (Rev. December 2016)

8586 Form (Rev. December 2016) Department of the Treasury Internal Revenue Service (99) Name(s) shown on return Part I 1 2 4 5 6 7 9 11 12 13 14 Attachment Sequence No. 36a Identifying number Buildings Placed in Service Before 2008 (ii) (iii) (iv) 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) . . . . . . . . . . . . . . . . . . . Amount allocated to beneficiaries of the estate or trust (see instructions) . . . . . . . . Estates and trusts, subtract line 6 from line 5. Report this amount on Form 3800, Part III, line 1d, column (c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 4 5 6 7 Buildings Placed in Service After 2007 Number of Forms 8609-A attached for buildings placed in service after 2007 . . . . . . . . . . . . . . . . . . . . . . ▶ 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) 10 ▶ Attach to your tax return. Information about Form 8586 and its instructions is at www.irs.gov/form8586. Current year credit from attached Form(s) 8609-A for buildings placed in service before 2008 (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . Low-income housing credit for buildings placed in service before 2008 from partnerships, S corporations, estates, and trusts . . . . . . . . . . . . . . . . . . . . . Part II 8 ▶ OMB No. 1545-0984 Number of Forms 8609-A attached for buildings placed in service before 2008 . . . . . . . . . . . . . . . . . . . . . . ▶ Has there been a decrease in the qualified basis of any buildings accounted for on line 1 since Yes No If “Yes,” enter the building the close of the preceding tax year? identification numbers (BINs) of the buildings that had a decreased basis. If you need more space, attach a schedule. (i) 3 Low-Income Housing Credit (ii) (iii) (iv) Current year credit from attached Form(s) 8609-A for buildings placed in service after 2007 (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . Low-income housing credit for buildings placed in service after 2007 from partnerships, S corporations, estates, and trusts. . . . . . . . . . . . . . . . . . . . . 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) . . . . . . . . . . . . . . . . . . . Amount allocated to beneficiaries of the estate or trust (see instructions) . . . . . . . . Estates and trusts, subtract line 13 from line 12. Report this amount on Form 3800, Part III, line 4d, column (c) . . . . . . . . . . . . . . . . . . . . . . . . . . For Paperwork Reduction Act Notice, see General Instructions. Cat. No. 63987I 10 11 12 13 14 Form 8586 (Rev. 12-2016) Form 8586 (Rev. 12-2016) General Instructions Section references are to the Internal Revenue Code unless otherwise noted. Future developments. For the latest information about developments related to Form 8586 and its instructions, such as legislation enacted after they were published, go to www.irs.gov/form8586. Purpose of Form Use Form 8586 to claim the low-income housing credit. This general business credit is allowed for each new qualified low-income building placed in service after 1986. Generally, it is taken over a 10-year credit period. The portion of the low-income housing credit attributable to buildings placed in service after 2007 is not limited by tentative minimum tax. Taxpayers, other than partnerships, S corporations, estates, or trusts, whose only source of this credit is from those pass-through entities, are not required to complete or file this form. Instead, they can report this credit directly on Form 3800. Qualified Low-Income Housing Project The credit cannot exceed the amount allocated to the building. See section 42(h)(1) for details. The low-income housing credit can only be claimed for residential rental buildings in low-income housing projects that meet one of the minimum set-aside tests. For details, see the Instructions for Form 8609, Part II, line 10c. Except for buildings financed with certain tax-exempt bonds, you may not take a low-income housing credit on a building if it has not received an allocation from the housing credit agency. No allocation is needed when 50% or more of the aggregate basis of the building and the land on which the building is located is financed with certain tax-exempt bonds. The owner still must get a Form 8609 from the appropriate housing credit agency (with the applicable items completed, including an assigned BIN). “Land on which the building is located” includes only land that is functionally related and subordinate to the qualified low-income building (see Regulations sections 1.103-8(a)(3) and 1.103-8(b)(4)(iii)). Recapture of Credit There is a 15-year compliance period during which the residential rental building must continue to meet certain requirements. If, as of the close of any tax year in this period, there is a reduction in the qualified basis of the building from the previous year, you may have to recapture a part of the credit you have taken. Similarly, you may have to recapture part of the credits taken in previous years upon certain dispositions of the building or interests therein, unless you follow the procedures to prevent recapture. See Recapture and building dispositions in the Instructions for Form 8609-A, Annual Statement for Low-Income Housing Credit, for details. If you must recapture credits, use Form 8611, Recapture of Low-Income Housing Credit. See section 42(j) for details. Recordkeeping Keep a copy of this Form 8586 together with all Forms 8609, Schedules A (Form 8609) (and successor Forms 8609-A), and Forms 8611 for 3 years after the 15-year compliance period ends. Specific Instructions 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 basis at the close of the first year of the credit period. Page 2 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 credit is allowable for the year. Line 3. The credit for the year is figured on Form 8609-A for each building. Attach a copy of each Form 8609-A you completed for the tax year to Form 8586. Enter on line 3 the total credit from attached Form(s) 8609-A for buildings placed in service before 2008. Line 6. Estates or trusts. Allocate the low-income housing credit on line 5 between the estate or trust and the beneficiaries in the same proportion as income was allocated and enter the beneficiaries’ share on line 6. If the estate or trust is subject to the passive activity rules, include on line 4 any low-income housing credits attributable to buildings placed in service before 2008 from passive activities disallowed for prior years and carried forward to this year. Complete Form 8582CR, Passive Activity Credit Limitations, to determine the allowed credit that must be allocated between the estate or trust and the beneficiaries. For details, see the Instructions for Form 8582-CR. Line 9. 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 basis at the close of the first year of the credit period. 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 credit is allowable for the year. Line 10. The credit for the year is figured on Form 8609-A for each building. Attach a copy of each Form 8609-A you completed for the tax year to Form 8586. Enter on line 10 the total credit for attached Form(s) 8609-A for buildings placed in service after 2007. Line 13. Estates or trusts. Allocate the low-income housing credit on line 12 between the estate or trust and the beneficiaries in the same proportion as income was allocated and enter the beneficiaries’ share on line 13. If the estate or trust is subject to the passive activity rules, include on line 11 any low-income housing credits attributable to buildings placed in service after 2007 from passive activities disallowed for prior years and carried forward to this year. Complete Form 8582CR, Passive Activity Credit Limitations, to determine the allowed credit that must be allocated between the estate or trust and the beneficiaries. For details, see the Instructions for Form 8582-CR. Paperwork Reduction Act Notice. We ask for the information on this form to carry out the Internal Revenue laws of the United States. You are required to give us the information. We need it to ensure that you are complying with these laws and to allow us to figure and collect the right amount of tax. You are not required to provide the information requested on a form that is subject to the Paperwork Reduction Act unless the form displays a valid OMB control number. Books or records relating to a form or its instructions must be retained as long as their contents may become material in the administration of any Internal Revenue law. Generally, tax returns and return information are confidential, as required by section 6103. The time needed to complete and file this form will vary depending on individual circumstances. The estimated burden for individual taxpayers filing this form is approved under OMB control number 1545-0074 and is included in the estimates shown in the instructions for their individual income tax return. The estimated burden for all other taxpayers who file this form is shown below. Recordkeeping . . . . . . . . . . . . 5 hr., 44 min. Learning about the law or the form . . . . . . . 52 min. 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.
Extracted from PDF file 2016-federal-form-8586.pdf, last modified October 2016

More about the Federal Form 8586 Other Tax Credit TY 2016

We last updated the Low-Income Housing Credit in May 2017, so this is the latest version of Form 8586, fully updated for tax year 2016. You can download or print current or past-year PDFs of Form 8586 directly from TaxFormFinder. You can print other Federal tax forms here.


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Form Sources:

The Internal Revenue Service usually releases income tax forms for the current tax year between October and January, although changes to some forms can come even later. We last updated Federal Form 8586 from the Internal Revenue Service in May 2017.

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Form 8586 is a Federal Other form. States often have dozens of even hundreds of various tax credits, which, unlike deductions, provide a dollar-for-dollar reduction of tax liability. Some common tax credits apply to many taxpayers, while others only apply to extremely specific situations. In most cases, you will have to provide evidence to show that you are eligible for the tax credit, and calculate the amount of the credit to which you are entitled.

Historical Past-Year Versions of Federal Form 8586

We have a total of five past-year versions of Form 8586 in the TaxFormFinder archives, including for the previous tax year. Download past year versions of this tax form as PDFs here:


2016 Form 8586

Form 8586 (Rev. December 2016)

Low-Income Housing Credit 2015 Form 8586

Form 8586 (Rev. August 2014)

Low-Income Housing Credit 2014 Form 8586

Form 8586 (Rev. August 2014)

Low-Income Housing Credit 2012 Form 8586

Form 8586 (Rev. December 2011)

Low-Income Housing Credit 2011 Form 8586

Form 8586 (Rev. December 2011)


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