Instructions For Form 8609 - 2016 (Page 2 of 5) in pdf

Building owner. You must make a one-time submission of

Line 1a. Generally, where Form 8609 is the allocating

Form 8609 to the Low-Income Housing Credit (LIHC) Unit at

document, the date of the allocation is the date the Form

the IRS Philadelphia campus. After making a copy of the

8609 is completed, signed, and dated by an authorized

completed original Form 8609, file the original of the form

official of the housing credit agency during the year the

with the unit no later than the due date (including extensions)

building is placed in service.

of your first tax return with which you are filing Form 8609-A,

However, if an allocation is made under section 42(h)(1)

Annual Statement for Low-Income Housing Credit.

(E) or 42(h)(1)(F), the date of allocation is the date the

Where to file Form 8609. Send the properly completed

authorized official of the housing credit agency completes,

and signed form(s) to:

signs, and dates the section 42(h)(1)(E) or 42(h)(1)(F)

document used to make the allocation. If no allocation is

Department of the Treasury

required (i.e., 50% or greater tax-exempt bond financed

Internal Revenue Service Center

building), leave line 1a blank.

Philadelphia, PA 19255-0549

Line 1b. Enter the housing credit dollar amount allocated to

the building for each year of the 10-year credit period. The

Note. The housing credit agency may require you to submit

amount should equal the percentage on line 2 multiplied by

a copy of Form 8609 with a completed Part II to the agency.

the amount on line 3a. The housing credit agency is required

You should contact the agency to obtain agency filing

to allocate only the amount necessary to assure project

requirements.

feasibility. To accomplish this, the agency can, to the extent

Also, file Form 8609-A for each year of the 15-year

permitted by the Code and regulations, lower the percentage

compliance period. The credit is claimed on Form 8586,

on line 2 and the amount on line 3a. See the instructions for

Low-Income Housing Credit. See the forms for filing

these lines for the limits that apply. For tax-exempt bond

instructions.

projects for which no allocation is required, enter the housing

Building Owner's Recordkeeping

credit dollar amount allowable under section 42(h)(4).

Line 2. The maximum applicable credit percentage

Keep the following items in your records for three years after

allowable is determined in part by the date the building was

the due date (including extensions) of the owner's tax return

placed in service. Follow the instructions pertaining to the

for the tax year that includes the end of the 15-year

date the building was placed in service.

compliance period.

A copy of the original Form 8609 received from the

Enter the maximum applicable credit percentage

housing agency and all related Forms 8609-A (or

allowable to the building for the month the building was

predecessor Schedules A (Form 8609)), Forms 8586, and

placed in service or, if applicable, for the month determined

any Forms 8611, Recapture of Low-Income Housing Credit.

under section 42(b)(1)(ii). This percentage may be less than

If the maximum applicable credit percentage allowable on

the applicable percentage published by the IRS.

line 2 reflects an election under section 42(b)(1)(ii), (or former

A minimum applicable credit percentage of 9% is in

section 42(b)(2)(A)(ii), for buildings placed in service before

effect for new non-federally subsidized buildings

July 31, 2008), a copy of the election statement.

placed in service after July 30, 2008. The 9%

If the binding agreement specifying the housing credit

CAUTION

minimum also applies to new non-federally subsidized

dollar amount is contained in a separate document, a copy of

buildings even if the taxpayer made an irrevocable election

the binding agreement.

under former section 42(b)(1)(A)(ii). If this circumstance

If the housing credit dollar amount allocated on line 1b

applies, do not enter less than 9% on line 2. See section

reflects an allocation made under section 42(h)(1)(E) or

42(m) and Regulations section 1.42-8(a)(4).

section 42(h)(1)(F), a copy of the allocation document.

If an election was made under section 42(b)(1)(A)(ii) to

use the applicable percentage for a month other than the

Specific Instructions

month in which a building is placed in service, the

requirements of Regulations section 1.42-8 must be met. The

Part I—Allocation of Credit

agency must keep a copy of the binding agreement. The

applicable percentage is published monthly in the Internal

Completed by Housing Credit Agency Only

Revenue Bulletin. For new buildings that are not federally

subsidized under section 42(i)(2)(A), use the applicable

Addition to qualified basis. Check this box if an allocation

percentage for the 70% present value credit, but do not enter

relates to an increase in qualified basis under section 42(f)

less than 9%, unless the housing credit agency determines

(3). Enter only the housing credit dollar amount for the

that a lesser amount is necessary to assure project feasibility.

increase. Do not include any portion of the original qualified

For new buildings that are federally subsidized, or existing

basis when determining this amount.

buildings, use the applicable percentage for the 30% present

Amended form. Check this box if this form amends a

value credit. See the instructions for line 6 for the definition of

previously issued form. Complete all entries and explain the

“federally subsidized,” and the time period for which the

reason for the amended form. For example, if there is a

definition applies. A taxpayer may elect under section 42(i)(2)

change in the amount of initial allocation before the close of

(B) to reduce eligible basis by the proceeds of any

the calendar year, file an amended Form 8609 instead of the

tax-exempt obligation in order to obtain the higher credit

original form.

percentage.

Item A. Identify the building for which this Form 8609 is

For allocations to buildings for additions to qualified basis

issued when there are multiple buildings with the same

under section 42(f)(3), do not reduce the applicable

address (e.g., BLDG. 6 of 8).

percentage even though the building owner may only claim a

-2-

Instructions for Form 8609 (1-2016)

Instructions For Form 8609 - 2016 Page 2

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