Form 8586 

(Rev. December 2023)

Department of the Treasury 

Internal Revenue Service

Low-Income Housing Credit

Attach to your tax return. 

Go to www.irs.gov/Form8586 for the latest information.

OMB No. 1545-0984

Attachment 

Sequence No. 36a

Name(s) shown on return Identifying number

1 Number of Forms 8609-A attached . . . . . . . . . . . . . . . . .

2 Has there been a decrease in the qualified basis of any buildings accounted for on line 1 since the close of the

preceding tax year? Yes No If “Yes,” enter the building identification numbers (BINs) of the

buildings that had a decreased basis. If you need more space, attach a schedule.

(i) (ii) (iii) (iv)

3 Current year credit from attached Form(s) 8609-A (see instructions) . . . . . . . . . . . . . 3

4 Low-income housing credit from partnerships, S corporations, estates, and trusts . . . . . . . . 4

5 Add lines 3 and 4. Estates and trusts, go to line 6. Partnerships and S corporations, stop here and report 

this amount on Schedule K. All others, stop here and report this amount on Form 3800, Part III, line 4d . . 5

6 Amount allocated to beneficiaries of the estate or trust (see instructions) . . . . . . . . . . . 6

7 Estates and trusts, subtract line 6 from line 5. Report this amount on Form 3800, Part III, line 4d . . . . 7

Future Developments

For the latest information about developments related to Form 8586 and 

its instructions, such as legislation enacted after they were published, 

go to www.irs.gov/Form8586.

What’s New

Lines 5 and 7. We removed the column references in lines 5 and 7 to 

accommodate the Form 3800 redesign.

General Instructions

Section references are to the Internal Revenue Code unless otherwise 

noted.

Purpose of Form

Use Form 8586 to claim the low-income housing credit. This general 

business credit is allowed for each new qualified low-income building 

placed in service after 1986. Generally, it is taken over a 10-year credit 

period.

Taxpayers, other than partnerships, S corporations, estates, or trusts, 

whose only source of this credit is from those pass-through entities, are 

not required to complete or file this form. Instead, they can report this 

credit directly on Form 3800.

Qualified Low-Income Housing Project

The credit cannot exceed the amount allocated to the building. See 

section 42(h)(1) for details.

The low-income housing credit can only be claimed for residential 

rental buildings in low-income housing projects that meet one of the 

minimum set-aside tests. For details, see the instructions for Form 8609, 

Part II, line 10c.

Except for buildings financed with certain tax-exempt bonds, you may 

not take a low-income housing credit on a building if it has not received 

an allocation from the housing credit agency. No allocation is needed 

when 50% or more of the aggregate basis of the building and the land 

on which the building is located is financed with certain tax-exempt 

bonds. The owner must still get a Form 8609 from the appropriate 

housing credit agency (with the applicable items completed, including 

an assigned BIN). “Land on which the building is located” includes only 

land that is functionally related and subordinate to the qualified lowincome building. (See Regulations sections 1.103-8(a)(3) and 1.103-8(b)

(4)(iii).)

Recapture of Credit

There is a 15-year compliance period during which the residential rental 

building must continue to meet certain requirements. If, as of the close 

of any tax year in this period, there is a reduction in the qualified basis of 

the building from the previous year, you may have to recapture a part of 

the credit you have taken. Similarly, you may have to recapture part of 

the credits taken in previous years upon certain dispositions of the 

building or interests therein, unless you follow the procedures to prevent 

recapture. See Recapture and building dispositions in the Instructions 

for Form 8609-A, Annual Statement for Low-Income Housing Credit, for 

details. If you must recapture credits, use Form 8611, Recapture of 

Low-Income Housing Credit. See section 42(j) for details.

Recordkeeping

Keep a copy of this Form 8586 and all Forms 8609, 8609-A, and 8611 

for 3 years after the 15-year compliance period ends.

Specific Instructions

Line 2. A decrease in qualified basis will result in recapture if the

qualified basis at the close of the tax year is less than the qualified basis 

at the close of the first year of the credit period.

If the reduction in qualified basis at the close of the tax year also 

results in a violation of the minimum set-aside requirement, then no 

credit is allowable for the year.

Line 3. The credit for the year is figured on Form 8609-A for each

building. Attach a copy of each Form 8609-A you completed for the tax 

year to Form 8586. Enter on line 3 the total credit for attached Form(s) 

8609-A.

Line 6. Estates or trusts. Allocate the low-income housing credit on 

line 5 between the estate or trust and the beneficiaries in the same 

proportion as income was allocated and enter the beneficiaries’ share 

on line 6.

If the estate or trust is subject to the passive activity rules, include on 

line 4 any low-income housing credits from passive activities disallowed 

for prior years and carried forward to this year. Complete Form 8582-

CR, Passive Activity Credit Limitations, to determine the allowed credit 

that must be allocated between the estate or trust and the beneficiaries. 

For details, see the Instructions for Form 8582-CR.

Paperwork Reduction Act Notice. We ask for the information on this 

form to carry out the Internal Revenue laws of the United States. You 

are required to give us the information. We need it to ensure that you are 

complying with these laws and to 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 relating to a form or its 

instructions must be retained as long as their contents may become 

material in the administration of any Internal Revenue law. Generally, tax 

returns and return information are confidential, as required by section 

6103.

The time needed to complete and file this form will vary depending on 

individual circumstances. The estimated burden for individual taxpayers 

filing this form is approved under OMB control number 1545-0074 and 

is included in the estimates shown in the instructions for their individual 

income tax return. The estimated burden for all other taxpayers who file 

this form is shown below.

Recordkeeping . . . . . . . . . . . . 4 hr., 4 min. 

Learning about the law or the form . . . . . . . . 52 min.

Preparing and sending the form to the IRS . . . . 2 hr., 10 min.

If you have comments concerning the accuracy of these time 

estimates or suggestions for making this form simpler, we would be 

happy to hear from you. See the instructions for the tax return with 

which this form is filed.

Cat. No. 63987I Form 8586 (Rev. 12-2023)