Form 4255 - Recapture Of Investment Credit Page 2
Download a blank fillable Form 4255 - Recapture Of Investment Credit in PDF format just by clicking the "DOWNLOAD PDF" button.
Open the file in any PDF-viewing software. Adobe Reader or any alternative for Windows or MacOS are required to access and complete fillable content.
Complete Form 4255 - Recapture Of Investment Credit with your personal data - all interactive fields are highlighted in places where you should type, access drop-down lists or select multiple-choice options.
Some fillable PDF-files have the option of saving the completed form that contains your own data for later use or sending it out straight away.
ADVERTISEMENT
1
2
3
42
Form 4255 (Rev. 12-2012)
Page
General Instructions
any time during the applicable recovery
amount of the allowable grant, you must
period (as defined in section 168(c)) to
include the difference as an increase in
Section references are to the Internal
attain and maintain the separation and
tax as if the investment to which the
Revenue Code unless otherwise noted.
sequestration requirements in section
excess portion of the grant relates had
Future developments. For the latest
48B(d)(1)(B). For more information, see
ceased to be a qualified investment
information about developments related
Notice 2009-23, 2009-16 I.R.B. 802; as
immediately after the grant was made.
to Form 4255 and its instructions, such
modified by Notice 2011-24, 2011-14 I.
The increase in tax for any recapture of a
as legislation enacted after this form and
R.B. 603.
qualifying therapeutic discovery project
instructions were published, go to
grant is imposed on the person to whom
• In the case of a project under the
the grant was made. In the case of pass-
Phase II qualifying advanced coal project
Purpose of Form
through entities (including partnerships,
program, failure during the applicable
S corporations, estates, and trusts), the
recovery period (as defined in section
Use Form 4255 to figure the increase in
tax is determined at the entity level and
168(c)) to attain and maintain the
tax for the recapture of investment credit
allocated to the entity owners as a credit
separation and sequestration
claimed and for the recapture of a
recapture.
requirements in section 48A(e)(1)(G). For
qualifying therapeutic discovery project
more information, see Notice 2009-24,
grant.
Basis Adjustment on
2009-16 I.R.B. 817; as modified by
Credit Recapture
Recapture
Notice 2011-24, 2011-14 I.R.B. 603.
Requirements and Special
Exceptions to recapture. Recapture of
For property subject to investment credit
Rules
the investment credit does not apply to
or qualifying therapeutic discovery
the following.
project grant recapture, increase the
Generally, you must refigure the
property’s basis as follows.
• A transfer because of the death of the
investment credit and may have to
taxpayer.
• For rehabilitation credit property,
recapture all or part of it if any of the
qualifying advanced coal project
following apply.
• A transfer between spouses or incident
property, qualifying gasification project
to divorce under section 1041. However,
• You disposed of investment credit
property, qualifying advanced energy
a later disposition by the transferee is
property before the end of 5 full years
project property, or depreciable
subject to recapture to the same extent
after the property was placed in service
qualifying therapeutic discovery project
as if the transferor had disposed of the
(recapture period).
property, increase the basis by 100% of
property at the later date.
• You changed the use of the property
the amount, attributable to each such
• A transfer of an interest in an electing
before the end of the recapture period so
property, of the recapture tax,
large partnership.
that it no longer qualifies as investment
adjustments to carrybacks and
credit property.
• A transaction to which section 381(a)
carryforwards under section 39, or
applies (relating to certain acquisitions of
• The business use of the property
adjustments to disallowed passive
the assets of one corporation by another
decreased before the end of the
activity credits.
corporation).
recapture period so that it no longer
• For energy property, increase the basis
qualifies (in whole or in part) as
• A mere change in the form of
by 50% of the amount, attributable to
investment credit property.
conducting a trade or business if:
each such property, of the recapture tax,
• Any building to which section 47(d)
1. The property is retained as
adjustments to carrybacks and
applies will no longer be a qualified
investment credit property in that trade
carryforwards under section 39, or
rehabilitated building when placed in
or business, and
adjustments to disallowed passive
service.
activity credits. If the reason for
2. The taxpayer retains a substantial
recapture is due to receipt of a payment
• Any property to which section 48(b)
interest in that trade or business.
applies will no longer qualify as
under section 1603 of the American
A mere change in the form of
investment credit property when placed
Recovery and Reinvestment Act of 2009,
conducting a trade or business includes
in service.
the basis of the energy property is
a corporation that elects to be an S
reduced by 50% of the payment
• Before the end of the recapture period,
corporation and a corporation whose S
received.
your proportionate interest was reduced
election is revoked or terminated.
by more than one-third in a partnership
If you are a partner or S corporation
For more details on the recapture
(other than an electing large partnership),
shareholder, the adjusted basis of your
rules, see section 50(a).
S corporation, estate, or trust that
interest in the partnership or stock in the
Caution. See section 46(g)(4) (as in
allocated the cost or other basis of
S corporation is adjusted to take into
effect on November 4, 1990) to figure
account the adjustment made to the
property to you for which you claimed a
the recapture tax if you made a
credit.
basis of property held by the partnership
withdrawal from a capital construction
or S corporation.
• You received a payment under section
fund set up under the Merchant Marine
1603 of the American Recovery and
For more information, see section 50(c)
Act of 1936 to pay the principal of any
and Regulations section 1.469-3(f).
Reinvestment Tax Act of 2009 for
debt incurred in connection with a vessel
investment credit property for which you
on which you claimed investment credit.
Specific Instructions
figured a credit for any prior year.
Recapture of Qualifying
• A net increase in the amount of
Note. Do not figure the recapture tax on
Therapeutic Discovery
nonqualified nonrecourse financing
lines 1 through 9 if there is an increase in
Project Grant
occurred for any property to which
nonqualified nonrecourse financing related
section 49(a)(1) applied. For more
to certain at-risk property. Figure the
You may have to recapture all or part of
details, see the instructions for line 10.
tentative recapture tax for these properties
a qualifying therapeutic discovery project
on separate statements and enter the
• You returned leased property (on
grant paid under section 9023 of the
which you claimed a credit) to the lessor
recapture tax on line 10. Include any
ACA. If you received a qualifying
unused credit for these properties on line
before the end of the recapture period.
therapeutic discovery project grant and
12.
the amount of the grant is more than the
• In the case of a project under the
Phase II gasification program, failure at
ADVERTISEMENT
0 votes
Related Articles
Related forms
Schedule B Individual - Recapture Of Investment Credit Claimed In Excess, Tax Credits And Other Payment And Withholdings
Financial
Schedule B Individual - Recapture Of Investment Credit Claimed In Excess, Tax Credits And Other Payments And Withholdings - 2003
Financial
Schedule B Corporation And Partnership - Recapture Of Investment Credit Claimed In Excess, Tax Credits, And Other Payments And Withholdings
Financial
Related Categories
Parent category: Financial