Form 8874 (Rev. 9-2017)
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
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
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
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
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,
. 6 hr., 13 min.
Learning about the
law or the form
. 1 hr., 12 min.
Preparing and sending
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.”