Instructions For Form 8609 - 2016 printable pdf download

Instructions for Form 8609

Department of the Treasury

Internal Revenue Service

(Rev. January 2016)

Low-Income Housing Credit Allocation and Certification

Section references are to the Internal Revenue Code unless

year in which the allocation is made if the building is part of a

otherwise noted.

project in which the taxpayer's basis is more than 10% of the

project's reasonably expected basis as of the end of that

Future Developments

second calendar year; or

For the latest information about developments related to

5. The allocation is made for a project that includes more

Form 8609 and its instructions, such as legislation enacted

than one building if:

after they were published, go to

a. The allocation is made during the project period,

What's New

b. The allocation applies only to buildings placed in

service during or after the calendar year in which the

The 9% minimum applicable percentage of section 42(b)(2)

allocation is made, and

has been made permanent for certain buildings placed in

service after July 30, 2008. For details, see the instructions

c. Each building in the project to which the allocation

for Part I.

applies is identified by a separate building identification

number (BIN).

General Instructions

Regarding 4. and 5., (carryover allocations) see sections

42(h)(1)(E) and 42(h)(1)(F) and Regulations section 1.42-6.

Purpose of Form

The agency can only make an allocation to a building

Owners of residential low-income rental buildings are

located within its geographical jurisdiction. Once an

allowed a low-income housing credit for each qualified

allocation is made, the credit is allowable for all years during

building over a 10-year credit period. Form 8609 can be used

the 10-year credit period. A separate Form 8609 must be

to obtain a housing credit allocation from the housing credit

completed for each building to which an allocation of credit is

agency. A separate Form 8609 must be issued for each

made.

building in a multiple building project. Form 8609 is also used

Multiple Forms 8609. Allocations of credit in separate

to certify certain information.

calendar years require separate Forms 8609. Also, when a

building receives separate allocations for acquisition of an

Housing credit agency. This is any state or local agency

authorized to make low-income housing credit allocations

existing building and for rehabilitation expenditures, a

within its jurisdiction.

separate Form 8609 must be completed for each credit

allocation.

Building identification number (BIN). This number is

Tax-exempt bonds. No housing credit allocation is required

assigned by the housing credit agency. The BIN initially

assigned to a building must be used for any allocation of

for any portion of the eligible basis of a qualified low-income

credit to the building that requires a separate Form 8609 (see

building that is financed with tax-exempt bonds taken into

account for purposes of the volume cap under section 146 if

Multiple Forms 8609, later). For example, rehabilitation

expenditures treated as a separate new building should not

principal payments on the financing are applied within a

have a separate BIN if the building already has one. Use the

reasonable period to redeem obligations the proceeds of

which were used to provide the financing or the financing is

number first assigned to the building.

refunded as described in section 146(i)(6). An allocation is

Allocation of credit. For an owner to claim a low-income

not needed when 50% or more of the aggregate basis of the

housing credit on a building (except as explained under

building and the land on which the building is located

Tax-exempt bonds, later), the housing credit agency must

(defined below) is financed with tax-exempt bonds described

make an allocation of the credit by the close of the calendar

in the preceding sentence. However, the owner still must get

year in which the building is placed in service, unless:

a Form 8609 from the appropriate housing credit agency

1. The allocation is the result of an advance binding

(with the applicable items completed, including an assigned

commitment by the credit agency made not later than the

BIN).

close of the calendar year in which the building is placed in

Land on which the building is located. This includes

service (see section 42(h)(1)(C));

only land that is functionally related and subordinate to the

2. The allocation relates to an increase in qualified basis

qualified low-income building. (See Regulations sections

(see section 42(h)(1)(D));

1.103-8(a)(3) and 1.103-8(b)(4)(iii) for the meaning of

“functionally related and subordinate.”)

3. The allocation is made to a building located in the Gulf

Opportunity (GO) Zone, Rita GO Zone, or Wilma GO Zone, if

Filing Requirement

the allocation was initially made in 2006, 2007, or 2008, and

the building is placed in service during the period beginning

Housing credit agency. Complete and sign Part I of Form

on January 1, 2006, and ending on December 31, 2011 (see

8609 and make copies of the form. Submit a copy with Form

Pub. 4492, Information for Taxpayers Affected by Hurricanes

8610, Annual Low-Income Housing Credit Agencies Report,

Katrina, Rita, and Wilma, for a list of the counties and

and keep a copy for the records. The agency must send the

parishes in these specific zones);

original, signed Form 8609 (including instructions) to the

building owner.

4. The allocation is made for a building placed in service

no later than the second calendar year following the calendar

Feb 01, 2016

Cat. No. 52385A

Instructions For Form 8609 - 2016

Related Articles

Related forms

Related Categories