Fillable Form 8874 - New Markets Credit (Page 3 of 3) in pdf

Form 8874 (Rev. 9-2017)

Page

amount on a 2017 Form 1040 is reported on line 62 (Other

If you need more space, attach a statement showing all the

taxes) and the amount on a 2017 Form 1120 is reported on

information requested for each qualified equity investment. On

Schedule J, line 9f (Other taxes).

the last row on line 1, write “See attached” in column (a) and

enter the total of the credit amounts from the attached

You are not subject to recapture of the credit solely because

statement in column (f).

you sell or otherwise dispose of your investment. However, you

cannot claim the credit for any credit allowance date after the

Paperwork Reduction Act Notice. We ask for the information

disposition.

on this form to carry out the Internal Revenue laws of the

Qualified CDEs must provide taxpayers holding a

United States. You are required to give us the information. We

qualified equity investment with a completed Form

TIP

need it to ensure that you are complying with these laws and to

8874-B when a recapture event occurs.

allow us to figure and collect the right amount of tax.

You are not required to provide the information requested on

Basis Reduction

a form that is subject to the Paperwork Reduction Act unless the

form displays a valid OMB control number. Books or records

You must reduce your basis in your qualified equity investment

relating to a form or its instructions must be retained as long as

by the amount of the new markets credits allowed (even if part

their contents may become material in the administration of any

or all of the credit is not allowed for the current year and is

Internal Revenue law. Generally, returns and return information

carried forward). However, do not reduce your basis for

are confidential, as required by section 6103.

purposes of figuring the exclusion of gain for:

The time needed to complete and file this form will vary

• Qualified small business stock under section 1202,

depending on individual circumstances. The estimated burden

• Certain DC zone assets under section 1400B, or

for individual and business taxpayers filing this form is approved

• Certain qualified community assets under section 1400F.

under OMB control number 1545-0074 and 1545-0123 and is

included in the estimates shown in the instructions for their

Additional Information

individual and business income tax return. The estimated

burden for all other taxpayers who file this form is shown below.

For more details, see section 45D, Regulations section 1.45D-1,

Recordkeeping

. 6 hr., 13 min.

Learning about the

Specific Instructions

law or the form

. 1 hr., 12 min.

Preparing and sending

Line 1

the form to the IRS

. 1 hr., 20 min.

Enter the information requested for each qualified equity

If you have comments concerning the accuracy of these time

investment held directly by you on a credit allowance date in

estimates or suggestions for making this form simpler, we would

the current tax year. In column (e), enter the credit rate. For the

be happy to hear from you. See the instructions of the tax return

first, second, or third year of the 7-year credit period, enter “5.”

with which this form is filed.

For any later year, enter “6.”

Form 8874 - New Markets Credit Page 3

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