Fillable Form N-586 - Tax Credit For Low-Income Housing

FORM N-586

Page 2

(REV. 2015)

PART III

Recapture of Low-Income Housing Credit

Date placed in service

Building

Address of Building (as shown on Form N-586)

(from Form N-586)

Building

TOTAL

Enter the amount of accelerated portion of tax credits

recaptured, federal Form 8611, line 7 ..................................................

Enter the appropriate credit percentage (see Instructions) ..................

Multiply line 1 by line 2 and enter result ...............................................

Enter net recapture amount from flow-through entities, Schedule K-1

or Federal Form 1099-PATR .................................................................

Enter the interest on line 4 recapture amount (see Instructions) .........

IRC Section 42 (j)(5) Partnerships ONLY - Enter interest

on line 3 recapture amount ...................................................................

Total recapture - Add lines 3, 4, 5, and 6. Enter here and on

proper line of your tax return ...............................................................

General

Purpose of Form. Owners of residen-

Tax Return. Attach a copy of federal Form

tial rental buildings providing low-income

8586 to Form 314.

Instructions

housing must use Form N-586 to claim the

Caution: No credit may be claimed on any

low-income housing credit.

building for which there has been allowed

(Section references are to the Internal

The tax credit does not apply to occu-

any relief from the passive loss rules under

Revenue Code (IRC) unless otherwise

pants of low-income housing units.

section 502 of the Tax Reform Act of 1986.

noted.)

For more information, contact the De-

Low-Income Housing Tax

The Hawaii low-income housing tax

partment of Taxation, Taxpayer Services

credit allowed under section 235-110.8,

Credit

Branch at (808) 587-4242, or toll-free at

Hawaii Revised Statutes (HRS), is based

1-800-222-3229.

upon the tax credit allowed for federal in-

Each taxpayer subject to the tax im-

come tax purposes under section 42. For

posed by chapter 235, HRS, who files a

Banks and other financial institutions.

property placed in service on or after July

net income tax return for a taxable year

–– Complete Parts I and II. Attach a copy of

1, 2005, the Hawaii low-income tax credit

may claim a low-income housing tax credit

federal Form 8586 to Form F-1.

is 50% of the allowable federal low-income

against the taxpayer’s net income tax li-

housing tax credit (30% for property placed

Partnerships, S Corporations, Estates

ability. The amount of the credit shall be

in service before July 1, 2005). A taxpayer

and Trusts.—Complete Part I to figure

deductible from the taxpayer’s net income

may claim this credit whether or not the tax-

the credit to pass through to the partners,

tax liability, if any, imposed by chapter 235,

payer claims a federal low-income housing

shareholders, or beneficiaries.

Attach a

HRS for the taxable year in which the credit

tax credit.

copy of federal Form 8586 to the entity’s

is properly claimed on a timely basis. A

income tax return.

credit under this section may be claimed

Note: Although a taxpayer no longer has

whether or not the taxpayer claims a federal

to claim the federal low-income housing tax

Partnership investors now have the flexibility

low-income housing tax credit pursuant to

credit in order to claim the State low-income

of allocating the State low-income housing

section 42.

housing tax credit, federal low-income

tax credit among its partners without regard

housing tax credit forms, Form 8586, will

to the partners’ proportionate interests in

Effective July 1, 2005, the low-income

need to be completed in order to claim the

the partnership for taxable years beginning

housing tax credit shall be fifty percent of

State low-income housing tax credit. Form

after December 31, 1999.

the applicable percentage basis of each

8586 needs to be attached to your Hawaii

building located in Hawaii. Applicable per-

Insurers.—Complete Part I to figure the

return even if you are not required to attach

centage shall be calculated as provided in

credit to carry to Form 314, Annual Premium

it to your federal return.

section 42(b).

Form N-586 - Tax Credit For Low-Income Housing - 2015 Page 2

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