Form 8609 - Low-Income Housing Credit Allocation Certification (Page 2 of 4) in pdf

Form 8609 (Rev. 1-93)

Page

Paperwork Reduction Act Notice

When To File

Housing credit agencies should issue a

We ask for the information on these forms to carry out the Internal Revenue laws of the

copy of Form 8609 (Part I completed only)

United States. You are required to give us the information. We need it to ensure that you

with instructions to the owner of the

are complying with these laws and to allow us to figure and collect the right amount of

building. The housing credit agency must

tax.

keep a copy and send the original to the

The time needed to complete and file the following forms will vary depending on

IRS with Form 8610, Annual Low-Income

individual circumstances. The estimated average times are:

Housing Credit Agencies Report.

Learning about the

Preparing and sending

Owners must attach completed Forms

Form

Recordkeeping

law or the form

the form to the IRS

8609 and accompanying Schedules A

8609

8 hr., 22 min.

2 hr., 29 min.

2 hr., 44 min.

(Form 8609) to Form 8586, Low-Income

Sch. A (8609)

6 hr., 41 min.

1 hr., 23 min.

1 hr., 34 min.

Housing Credit. Owners must file these

If you have comments concerning the accuracy of these time estimates or suggestions

forms with their income tax returns by the

for making these forms more simple, we would be happy to hear from you. You can write

due date of the return for the first tax year

to both the Internal Revenue Service and the Office of Management and Budget at the

in which the credit is claimed and for each

addresses listed in the instructions for the tax return with which these forms are filed.

year thereafter throughout the compliance

period, whether or not a credit is claimed

for the tax year.

General Instructions

the credit by the close of the calendar year

in which the building is placed in service,

Note to owners: Do not attach Form 8609

(Section references are to the Internal

unless—

or Schedule A (Form 8609) to Form 8586 if

Revenue Code unless otherwise noted.)

the credit claimed on Form 8586 is from a

The allocation is the result of an

partnership, S corporation, estate, or trust

advance binding commitment by the credit

Purpose of Form

because that entity will complete those

agency made not later than the close of

forms and attach them to its return.

Sections 38 and 42 allow owners of

the calendar year in which the building is

residential low-income rental buildings to

placed in service (see section 42(h)(1)(C));

Recordkeeping

claim a low-income housing credit for each

The allocation relates to an increase in

Requirements

qualified building over a 10-year credit

qualified basis (see section 42(h)(1)(D)); or

period. Form 8609 is used to obtain a

To verify changes in qualified basis from

The allocation is made in a year in which

housing credit allocation from the housing

year to year, you must keep a copy of this

the taxpayer has incurred more than 10%

credit agency. A separate Form 8609 must

Form 8609 with all accompanying

of its reasonably expected basis in the

be issued for each building in a multiple

Schedule(s) A (Form 8609), Forms 8586,

project (see sections 42(h)(1)(E), 42(h)(1)(F),

building project. Form 8609 and related

and 8611, for 3 years after the 15-year

and Notice 89-1, 1989-1 C.B. 620).

Schedule A (Form 8609), Annual

compliance period ends (unless this

The agency can only make an allocation

Statement, are also used to certify certain

recordkeeping requirement is otherwise

to a building located within its

necessary information under section 42.

extended).

geographical jurisdiction. Once an

Section 502(a) of the Tax Reform Act of

Specific Instructions

allocation is made, the credit is allowable

1986 provides transitional relief from the

for all years during the 10-year credit

passive loss rules for qualified investors in

Part I—Allocation of Credit

period. A separate Form 8609 must be

a qualified low-income housing project.

completed for each building to which an

However, if any person has been allowed

Completed by Housing Credit

allocation of credit is made.

any benefit under section 502(a) for the

Agency Only

project, the low-income housing credit is

Multiple Forms 8609.—Allocations of

Check Boxes.—Check the box(es) that

not allowed for the project.

credit in separate calendar years require

apply, as explained below.

separate Forms 8609. Also, when a

Housing Credit Agency.—This means any

Addition to Qualified Basis.—Check this

building receives separate allocations for

state or local agency authorized under

box if an allocation relates to an increase

acquisition of an existing building and for

section 42 to make low-income housing

in qualified basis under section 42(f)(3).

rehabilitation expenditures, a separate

credit allocations within its jurisdiction.

Enter only the credit dollar amount for the

Form 8609 must be completed for each

Owner of Building.—Owners must

increase. Do not include any portion of the

credit allocation.

complete Part II of this form and a

original qualified basis when determining

Tax-Exempt Bonds.—No housing credit

separate Schedule A (Form 8609), even if

this amount.

allocation is required for any portion of the

an allocation of credit by a housing credit

Amended Form.—Check this box if this

eligible basis of a qualified low-income

agency is not required, and attach both the

form amends a previously issued form.

building that is financed with tax-exempt

form and the schedule to their income tax

Complete all entries and explain the reason

bonds taken into account for purposes of

return. See Specific Instructions before

for the amended form. For example, if

the volume cap under section 146. An

completing Part II.

there is a change in the amount of initial

allocation is not needed when 50% or

Building Identification Number (BIN).—

allocation before the close of the calendar

more of the aggregate basis of the building

This number is assigned by the housing

year, file an amended Form 8609 in place

and the land on which the building is

credit agency (see Notice 88-91, 1988-2

of the original form.

located is financed with certain tax-exempt

C.B. 414).

Item A.—Please identify the building for

bonds for buildings placed in service after

The BIN initially assigned to a building

which this Form 8609 is issued when there

1989.

must be used for any allocation of credit to

are multiple buildings with the same

However, the owner must still get a

the building that requires a separate Form

address (e.g., BLDG. 6 of 8).

Form 8609 from the applicable housing

8609 (see Multiple Forms 8609, below).

Item 1a.—Generally, the date of allocation

credit agency (with Part I completed,

For example, rehabilitation expenditures

is the date the Form 8609 is completed,

including an assigned building

treated as a separate new building under

signed, and dated by an authorized official

identification number (BIN)).

section 42(e) should not have a separate

of the housing credit agency. However, if

BIN if the building already has one. Use

Land on which the building is located.—

an allocation is made under section

the number first assigned to the building.

This includes only land that is functionally

42(h)(1)(E) or 42(h)(1)(F), the date of

Allocation of Credit.—For an owner to

related and subordinate to the qualified

allocation is the date the authorized official

claim a low-income housing credit on a

low-income building (see Regulations

of the housing credit agency completes,

building (except as explained under

sections 1.103-8(a)(3) and 1.103-8(b)(4)(iii)

signs, and dates the section 42(h)(1)(E) or

Tax-Exempt Bonds below), the housing

for the meaning of “functionally related and

42 (h)(1)(F) document used to make the

credit agency must make an allocation of

subordinate”).

Form 8609 - Low-Income Housing Credit Allocation Certification Page 2

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