Get the free Form 8611

This form is used to recapture part of the low-income housing credit claimed in prior years due to a decrease in the qualified basis of a building or disposition of ownership interests without meeting

How to fill out form 8611

How to fill out Form 8611

1. Obtain Form 8611 from the IRS website or your tax preparer.
2. Enter your name and Social Security Number (SSN) at the top of the form.
3. Complete Part I to calculate your applicable credit by entering the current year's business credit amount.
4. Fill out Part II to determine if your credit is subject to recapture, based on your previous credits.
5. Calculate your recapture amount, if applicable, and enter it in the designated area.
6. Review the instructions on the form for any specific calculations or requirements.
7. Sign and date the form when you have completed it.
8. Attach Form 8611 to your tax return before submitting.

Who needs Form 8611?

1. Taxpayers who have previously claimed the American Opportunity Tax Credit (AOTC) or Lifetime Learning Credit (LLC) for education expenses.
2. Individuals who are subject to recapture of education credits due to changes in eligibility or circumstances.

People Also Ask about

What is a tax return form used for?

A tax return is a document filed with a tax authority that reports income, expenses, and other relevant financial information. On tax returns, taxpayers calculate their tax liability, schedule tax payments, or request refunds for the overpayment of taxes. In most places, tax returns must be filed annually.

How do I fill out a US tax form?

Steps to file your federal tax return You will need the forms and receipts that show the money you earned and the tax-deductible expenses you paid. Choose your filing status. Decide how you want to file your taxes. Determine if you are taking the standard deduction or itemizing your return.

What is the meaning of recapture of low-income housing credit?

Conditions for recapture of the credit And, the building must continue to meet certification requirements. If not, the owner may have to recapture a portion of the credit allocation using Form 8611, Recapture of Low-Income Housing Credit. Recapture refers to adding back income that a credit previously reduced.

What is the eligible basis for the low-income housing tax credit?

Eligible basis is a component of the qualified basis of an LIHC project. It is generally equal to the adjusted basis of the building, excluding land but including amenities and common areas. An existing building is a building that has been previously placed in service.

Who files form 8611?

Taxpayers may need to use this form to repay a portion of the low-income housing credit claimed in previous years.

What is the meaning of recapture of low-income housing credit?

Conditions for recapture of the credit And, the building must continue to meet certification requirements. If not, the owner may have to recapture a portion of the credit allocation using Form 8611, Recapture of Low-Income Housing Credit. Recapture refers to adding back income that a credit previously reduced.

What is 8611?

What is Form 8611, Recapture of Low-Income Housing Credit. Form 8611 is used to ensure compliance with recapture provisions when there is a reduction in the qualified basis of a property or if a building is disposed of without meeting specific non-recapture requirements.

What is form 8611 used for?

Use this form if you must recapture part of the low-income housing credit you claimed in previous years because the qualified basis decreased from one year to the next or you disposed of a building, or your interest therein, and you did not follow the procedures that would have prevented recapture of the credit.

For pdfFiller’s FAQs

What is Form 8611?

Form 8611 is the 'Recapture of Low-Income Housing Credit' used to determine the amount of low-income housing credit that must be recaptured when a taxpayer's ownership of a low-income housing project ends.

Who is required to file Form 8611?

Taxpayers who have claimed low-income housing credits in the past and who are disposing of their interest in a low-income housing project are required to file Form 8611.

How to fill out Form 8611?

To fill out Form 8611, taxpayers must provide information such as the amount of unrecaptured low-income housing credits, any change in ownership, and the disposition details of the property.

What is the purpose of Form 8611?

The purpose of Form 8611 is to calculate the amount of low-income housing credit that needs to be recaptured if the taxpayer no longer qualifies or disposes of their low-income housing project.

What information must be reported on Form 8611?

Form 8611 must report the total amount of credits taken, the portion to be recaptured, and any pertinent details about the property disposition and ownership changes.