Instructions For Form 4255 - Recapture Of Investment Credit Page 5


property B back to 2014 had no credit
if any, shown on Form 3468. Enter the
allow us to figure and collect the right
been available from property A. Therefore,
result (but not less than zero) on line 18.
amount of tax.
she enters $75,000 on line 13 and
See the Instructions for Form 1065-B.
You are not required to provide the
$25,000 ($100,000 - $75,000) on line 14.
Line 19. Enter the amount of any
information requested on a form that is
Maayan’s total increase in tax for 2016 is
qualifying therapeutic discovery project
subject to the Paperwork Reduction Act
$15,000 (60% of $25,000). She increases
grant required to be recaptured under
unless the form displays a valid OMB
her basis in property A by $15,000.
section 9023(e) of the ACA.
control number. Books or records relating
Example 4. In 2014, Ian earned a
to a form or its instructions must be
Do not complete lines 1 through 18 to
rehabilitation credit of $100,000 from
retained as long as their contents may
figure this increase in tax. Attach a
property A. Ian used $1,000 of the credit
become material in the administration of
statement showing how you figured the
to offset tax in 2014 and used $99,000 as
any Internal Revenue law. Generally, tax
increase in tax. Do not adjust the increase
a carryforward to offset tax in 2015. In
returns and return information are
in tax for any unused investment credit.
2016, he earned a rehabilitation credit of
confidential, as required by section 6103.
Partnerships, S corporations, estates,
$75,000 from property B and used none of
and trusts, determine the increase in tax at
The time needed to complete and file
the credit to offset tax.
the entity level. This amount will be
this form will vary depending on individual
On February 1, 2016, property A
allocated to the entity owners as a credit
circumstances. The estimated burden for
ceased to be investment credit property
individual and business taxpayers filing
and Ian must refigure the credit from
this form is approved under OMB control
Line 20. Enter the line 20 amount on the
property A. His recapture percentage is
number 1545-0074 and 1545-0123 and is
appropriate line of your tax return (for
80%. He enters $100,000 on line 6. No
included in the estimates shown in the
example, 2016 Form 1120, Schedule J,
carryback or carryforward credits are
instructions for their individual and
line 9a). Partnerships (other than electing
available for 2014 to offset the $1,000
business income tax returns. The
large partnerships), enter the amount from
credit used for property A. However, Ian
estimated burden for all other taxpayers
line 20 on Form 1065, Schedule K,
could have carried the rehabilitation credit
who file this form is shown below.
line 20c using code H. See the
of $75,000 from property B back to 2015
Instructions for Form 1065 for more
had no credit been available from property
information on how to allocate this amount
6 hr., 27 min.
A that year. Therefore, he enters $75,000
. . . . . .
to the partners. S corporations, enter the
on line 13 and $25,000 ($100,000 -
Learning about the
amount from line 20 on Form 1120S,
$75,000) on line 14. Ian’s total increase in
law or the form
1 hr., 35 min.
. . . . . .
Schedule K, line 17d using code G. See
tax for 2016 is $20,000 (80% of $25,000).
the Instructions for Form 1120S for more
He increases his basis in property A by
Preparing and
information. Estates and trusts, enter the
sending the form to
amount from line 20 on Form 1041,
the IRS
1 hr., 46 min.
. . . . . . . . . . . .
Lines 17 and 18. If you used separate
Schedule G, line 5. See the Instructions
statements to list additional properties,
for Form 1041 for more information.
write to the left of the entry space “Tax
from attached” and the total tax from the
Paperwork Reduction Act Notice. We
If you have comments concerning the
separate statements. Include the amounts
ask for the information on this form to carry
accuracy of these time estimates or
from these statements in the totals for
out the Internal Revenue laws of the
suggestions for making this form simpler,
lines 17 and 18, respectively.
United States. You are required to give us
we would be happy to hear from you. See
the information. We need it to ensure that
the instructions for the tax return with
Special rule for electing large
you are complying with these laws and to
which this form is filed.
partnerships. Before entering the result
on line 18, subtract the current year credit,
Instructions for Form 4255 (Rev. 12-2016)


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