Form 8611

(Rev. December 2021) 

Department of the Treasury 

Internal Revenue Service 

Recapture of Low-Income Housing Credit

▶ Attach to your return. 

▶ Go to www.irs.gov/Form8611 for instructions and the latest information.

Note: Complete a separate Form 8611 for each building to which recapture applies.

OMB No. 1545-1035 

Attachment 

Sequence No. 90

A Name(s) shown on return B Identifying number

C Address of building (as shown on Form 8609) D Building identification 

number (BIN)

E Date placed in service (from

Form 8609)

F If building is financed in whole or part with tax-exempt bonds, see instructions and furnish:

(1) Issuer’s name

(2) Date of issue

(3) Name of issue (4) CUSIP number

Note: Skip lines 1–7 and go to line 8 if recapture is passed through from a flow-through entity (partnership, S corporation, estate, or 

trust). However, section 42(j)(5) partnerships must complete lines 1 through 7.

1 Enter total credits reported on Form 8586 in prior years for this building . . . . . . . . . 1 

2 Credits included on line 1 attributable to additions to qualified basis (see instructions) . . . . 2 

3 Credits subject to recapture. Subtract line 2 from line 1 . . . . . . . . . . . . . . . 3 

4 Credit recapture percentage (see instructions) . . . . . . . . . . . . . . . . . . 4 . 

5 Accelerated portion of credit. Multiply line 3 by line 4 . . . . . . . . . . . . . . . 5 

6 Percentage decrease in qualified basis. Express as a decimal amount carried out to at least 3

places (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . 6 . 

7 Amount of accelerated portion recaptured (see instructions if prior recapture on building). Multiply

line 5 by line 6. Section 42(j)(5) partnerships, go to line 16. All other flow-through entities enter the

result here and enter each recipient’s share in the appropriate box of Schedule K-1. Generally, 

flow-through entities will stop here. (Note: An estate or trust enters on line 8 only its share of

recapture amount attributable to the credit amount reported on its Form 8586.) . . . . . . . 7 

8 Enter recapture amount from flow-through entity (see Note above) . . . . . . . . . . . 8 

9 Enter the unused portion of the accelerated amount from line 7 (see instructions) . . . . . . 9 

10 Net recapture. Subtract line 9 from line 7 or line 8. If less than zero, enter -0- . . . . . . . 10 

11 Enter interest on the line 10 recapture amount (see instructions) . . . . . . . . . . . . 11 

12 Total amount subject to recapture. Add lines 10 and 11 . . . . . . . . . . . . . . 12 

13 Unused credits attributable to this building reduced by the accelerated portion included on line 9

(see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 

14 Recapture tax. Subtract line 13 from line 12. If zero or less, enter -0-. Enter the result here and on

the appropriate line of your tax return (see instructions). If more than one Form 8611 is filed, add 

the line 14 amounts from all forms and enter the total on the appropriate line of your return . . . 14 

15 Carryforward of the low-income housing credit attributable to this building. Subtract line 12 

from line 13. If zero or less, enter -0- (see instructions) . . . . . . . . . . . . . . . 15 

Only Section 42(j)(5) partnerships need to complete lines 16 and 17.

16 Enter interest on the line 7 recapture amount (see instructions) . . . . . . . . . . . . 16 

17 Total recapture. Add lines 7 and 16 (see instructions) . . . . . . . . . . . . . . . 17 

For Paperwork Reduction Act Notice, see instructions. Cat. No. 63983Q Form 8611 (Rev. 12-2021)
Form 8611 (Rev. 12-2021) Page 2 

General Instructions

Section references are to the Internal 

Revenue Code.

Future Developments

For the latest information about 

developments related to Form 8611 and 

its instructions, such as legislation 

enacted after they were published, go to 

www.irs.gov/Form8611.

Purpose of Form

Use this form if you must recapture part 

of the low-income housing credit you 

claimed in previous years because the 

qualified basis decreased from one year 

to the next or you disposed of a building, 

or your interest therein, and you did not 

follow the procedures that would have 

prevented recapture of the credit.

Decrease in qualified basis. The 

decrease may result from a change in 

the eligible basis or the applicable 

fraction. For example, a decrease in 

qualified basis may exist when units are 

not occupied by income-qualified 

tenants under section 42(i)(3)(A)(ii), units 

are not rent restricted under section 

42(g)(2), units are not suitable for 

occupancy as described in section 42(i)

(3)(B)(ii), or the project no longer meets 

the minimum set-aside requirements of 

section 42(g)(1).

Building dispositions. Disposing of a 

building or an interest therein will 

generate a credit recapture, unless it is 

reasonably expected that the building will 

continue to be operated as a qualified 

low-income building for the remainder of 

the building’s compliance period.

See section 42(j) for more information.

Note: If the decrease in qualified basis is

because of a change in the amount for

which you are financially at risk on the

building, then you must first recalculate

the amount of credit taken in prior years

under section 42(k) before you calculate

the recapture amount on this form.

To complete this form you will need 

copies of the following forms that you 

have filed.

• Form 8586, Low-Income Housing 

Credit (and Form 3800, General 

Business Credit, if applicable);

• Form 8609, Low-Income Housing 

Credit Allocation and Certification (or 

predecessor, Form 8609, Low-Income 

Housing Credit Allocation Certification);

• Form 8609-A, Annual Statement for 

Low-Income Housing Credit (or 

predecessor, Schedule A (Form 8609), 

Annual Statement); and

• Form 8611.

Note: Flow-through entities must give

partners, shareholders, and beneficiaries

the information that is reported in items

C, D, E, and F of Form 8611.

Recapture does not apply if:

• You disposed of the building or an 

ownership interest in it and you satisfy the 

requirements for avoiding recapture as 

outlined earlier under Building dispositions;

• You disposed of an ownership interest 

in a building you held through a 

partnership to which section 42(j)(5) 

applies;

• The decrease in qualified basis does 

not exceed the additions to qualified 

basis for which credits were allowable in 

years after the first year of the credit 

period; or

• The qualified basis is reduced because 

of a casualty loss, provided the property 

is restored or replaced within a 

reasonable period.

Recordkeeping

In order to verify changes in qualified 

basis from year to year, keep a copy of 

all Forms 8586, 8609, 8609-A (or 

predecessor, Schedule A (Form 8609)), 

8611, and 8693 for 3 years after the 

15-year compliance period ends.

Specific Instructions

Note: If recapture is passed through

from a flow-through entity (partnership, 

S corporation, estate, or trust), skip lines

1–7 and go to line 8. However, section 

42(j)(5) partnerships must complete lines 

1 through 7.

Item F. If the building is financed with

tax-exempt bonds, furnish the following

information: (1) name of the entity that

issued the bond (not the name of the

entity receiving the benefit of the

financing); (2) date of issue, generally the

first date there is a physical exchange of

the bonds for the purchase price; 

(3) name of the issue, or if not named,

other identification of the issue; and 

(4) CUSIP number of the bond with the

latest maturity date. If the issue does not

have a CUSIP number, enter “None.”

Line 1. Enter the total credits claimed on

the building for all prior years from all

Forms 8586 (before reduction due to the

tax liability limit) you have filed. Prior to

the December 2006 revision of Form

8586, the credits (before reduction due

to the tax liability limit) were reported in

Part I. Do not include credits taken by a

previous owner.

Line 2 Worksheet (*Line reference is to Form 8609-A (or predecessor, Schedule A (Form 8609)).)

a Enter the amount from line 10* . . . . . . . . . . . . . . . . . . . . . . . . . a

b Multiply a by 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . b

c Enter the amount from line 11* . . . . . . . . . . . . . . . . . . . . . . . . . c

d Subtract c from b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . d

e Enter decimal amount figured in step 1 of the instructions for line 14*. If line 14* does not apply to you, 

enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . e

f Multiply d by e . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . f

g Subtract f from d . . . . . . . . . . . . . . . . . . . . . . . . . . . . . g

h Divide line 16* by line 15*. Enter the result here . . . . . . . . . . . . . . . . . . . h

i Multiply g by h. Enter this amount on line 2. (If more than one worksheet is completed, add the amounts 

on i from all worksheets and enter the total on line 2.) . . . . . . . . . . . . . . . . . i
Form 8611 (Rev. 12-2021) Page 3 

Line 2. Determine the amount to enter

on this line by completing a separate

Line 2 Worksheet for each prior year for 

which line 7 of Form 8609-A (or 

predecessor, Schedule A (Form 8609)) 

was completed.

Line 4. Enter the credit recapture

percentage, expressed as a decimal

carried to at least 3 places, from the

table below.

IF the recapture 

event occurs 

in . . .

THEN 

enter on 

line 4 . . .

Years 2 through 11 . . . . . .333

Year 12 . . . . . . . . . .267

Year 13 . . . . . . . . . .200

Year 14 . . . . . . . . . .133

Year 15 . . . . . . . . . .067

Line 6. Enter the percentage decrease in

qualified basis during the current year.

For this purpose, figure qualified basis 

without regard to any additions to 

qualified basis after the first year of the 

credit period. Compare any decrease in 

qualified basis first to additions to 

qualified basis. Recapture applies only if 

the decrease in qualified basis exceeds 

additions to qualified basis after the first 

year of the credit period.

If you disposed of the building or an 

ownership interest in it and did not 

satisfy the requirements for avoiding 

recapture as outlined earlier under 

Building dispositions, you must 

recapture all of the accelerated portion 

shown on line 5. Enter 1.000 on line 6.

Note: If the decrease causes the qualified 

basis to fall below the minimum set-aside 

requirements of section 42(g)(1) (the 

20-50 test, the 40-60 test, or the average 

income test), then 100% of the amount 

shown on line 5 must be recaptured. 

Enter 1.000 on line 6. If you elected the 

40-60 test for this building and the 

decrease causes you to fall below 40%, 

you cannot switch to the 20-50 test or 

the average income test to meet the setaside requirements. You must recapture 

the entire amount shown on line 5.

Line 7. If there was a prior recapture of

accelerated credits on the building, do not 

recapture that amount again as the result 

of the current reduction in qualified basis.

Line 9. Figure the unused portion of the 

accelerated amount on line 7 by:

Step 1. Totaling the credits 

attributable to the building that you 

could not use in prior years.*

Step 2. Reducing the result of step 1 

by any unused credits attributable to 

additions to qualified basis.

Step 3. Multiplying the result of step 2 

by the decimal amount on line 4.

Step 4. Multiplying the result of step 3 

by the decimal amount on line 6.

Step 5. Enter the result of step 4 on 

line 9.

*Generally, this is the amount of credit reported on 

line 1 of this Form 8611 reduced by the total lowincome housing credits allowed on Form 8586 or 

Form 3800 for each year.

Line 11. Figure the interest separately

for each prior tax year for which a credit

is being recaptured. Interest must be

figured at the overpayment rate

determined under section 6621(a)(1) and

compounded on a daily basis from the

due date (not including extensions) of the 

return for the prior year until the earlier of 

(a) the due date (not including

extensions) of the return for the recapture 

year, or (b) the date the return for the 

recapture year is filed and any income 

tax due for that year has been fully paid.

Tables of interest factors to figure daily 

compound interest were published in 

Rev. Proc. 95-17, 1995-1 C.B. 556. The 

interest rate in effect through December 

31, 2019, is shown in Rev. Rul. 2019-21, 

2019-38 I.R.B. 708. For periods after 

December 31, 2019, use the overpayment 

rate under section 6621(a)(1) in the 

revenue rulings published quarterly in the 

Internal Revenue Bulletin. 

Note: If the line 8 recapture amount is

from a section 42(j)(5) partnership, the

partnership will figure the interest and

include it in the recapture amount

reported to you. Enter “-0-” on line 11

and write “Section 42(j)(5)” to the left of

the entry space for line 11.

Line 13. Subtract the amount on line 9

from the total of all prior year unused

credits attributable to the building (Step

1 of the line 9 instruction above). Enter

the result on line 13.

Line 14. Form 1040, 1040-SR, and 

1040-NR filers report the recapture tax 

on Schedule 2 (Form 1040), line 16. 

Form 1120 filers report the recapture tax 

on Form 1120, Schedule J, line 9b.

Line 15. Carry forward the low-income

housing credit attributable to this building 

to the next tax year. See the Instructions 

for Form 3800 for details on how to 

report the carryforward of unused credits.

Lines 16 and 17. Only section 42(j)(5)

partnerships complete these lines. This

is a partnership that has at least 35

partners, unless the partnership elects

(or has previously elected) not to be

treated as a section 42(j)(5) partnership.

For purposes of this definition, an 

individual and his or her spouse (and 

their estates) are treated as one partner.

For purposes of determining the credit 

recapture amount, a section 42(j)(5) 

partnership is treated as the taxpayer to 

which the low-income housing credit 

was allowed and as if the amount of 

credit allowed was the entire amount 

allowable under section 42(a).

See the instructions for line 11 to 

figure the interest on line 16. The 

partnership must attach Form 8611 to its 

Form 1065 and allocate this amount to 

each partner on Schedule K-1 (Form 

1065) in the same manner as the 

partnership’s taxable income is allocated 

to each partner.

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 . . . . 8 hr., 21 min.

Learning about the 

law or the form . . . . . . . 1 hr.

Preparing and sending 

the form to the IRS . . 1 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. You can write to the IRS at the 

address listed in the instructions for the 

tax return with which this form is filed.