Form 8866 

(Rev. August 2012) 

Department of the Treasury 

Internal Revenue Service 

Interest Computation Under the Look-Back Method for 

Property Depreciated Under the Income Forecast Method 

▶ Information about Form 8866 and its separate instructions is available at www.irs.gov/form8866.

OMB No. 1545-1622 

Attachment 

Sequence No. 108 

For the recomputation year beginning , and ending . See instructions. 

Print 

or 

Type

Name 

Number, street, and apt., room, or suite no. If a P.O. box, see instructions. 

City or town, state, and ZIP code. If a foreign address, see instructions. 

A Identifying number 

B Check applicable box to show type of taxpayer:

Corporation 

Individual 

Estate or trust 

S corporation 

Partnership 

C If you were an owner of an interest in a pass-through entity (such as a partnership or an S corporation) that depreciated one or more properties to which this interest 

computation relates, enter the name and employer identification number of the entity. Attach a schedule if there is more than one such entity. 

Name of entity: Employer identification number 

Prior Years Pass-through entities: Skip lines 1, 3, 4, and 5. 

 

Year ended 

yr. 

(a) 

Year ended 

mo. yr. 

(b) 

Year ended 

mo. yr. 

(c) 

Totals 

(Add columns (a) and (b)) 

Recomputation 

1 Taxable Year income (or loss) for the prior years shown on tax return (or 

as previously adjusted) before net operating loss or capital loss 

carrybacks (other than carrybacks that must be taken into account 

to properly compute interest under section 167(g)) (see instructions). 

If you were required to file Form 8866 for an earlier year, enter 

adjusted taxable income for the prior years from Form 8866, line 3, 

for the most recent recomputation year that affects the prior years. 

mo. 

2 Adjustment to taxable income for the difference between: (a) the 

depreciation deducted under the income forecast method based 

on estimated future income and (b) depreciation allowable under 

the income forecast method based on actual income earned for 

periods before the end of the recomputation year and estimated 

future income to be earned after the recomputation year. See 

instructions and attach a schedule listing each separate property, 

unless you were an owner of an interest in a pass-through entity.

3 Adjusted taxable income for look-back purposes. Combine 

lines 1 and 2. If line 3 is a negative amount, see instructions. 

4 Income tax liability on line 3 amount using tax rates in effect 

for the prior years (see instructions) . . . . . . .

5 Income tax liability shown on return (or as previously 

adjusted) for the prior years (see instructions). If you were 

required to file Form 8866 for an earlier year, enter the 

amount required to be reported on Form 8866, line 4, for the 

most recent recomputation year that affects the prior years 

6 Increase (or decrease) in tax for the prior years on which 

interest is due (or is to be refunded). Subtract line 5 from 

line 4. (Pass-through entities: See instructions.) . . .

7 Interest due on increase, if any, shown on line 6 (see 

instructions) . . . . . . . . . . . . . .

8 Interest to be refunded on decrease, if any, shown on line 6 

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

9 Net amount of interest to be refunded to you. If line 8, column (c), exceeds line 7, column (c), enter the excess. File 

Form 8866 separately; do not attach it to your tax return (see instructions) . . . . . . . . . . . . . . . .

10 Net amount of interest you owe. If line 7, column (c), exceeds line 8, column (c), enter the excess. Attach Form 8866 to 

your tax return. See instructions for where to include this amount on your return . . . . . . . . . . . .

Signatures. Complete this section only if this form is being filed separately and not with the tax return. 

Sign 

Here 

Under penalties of perjury, I declare that I have examined this form, including accompanying schedules and statements, and to the best of my knowledge 

and belief, it is true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge. 

For Privacy Act and Paperwork Reduction Act Notice, see instructions. Cat. No. 26036C Form 8866 (Rev. 8-2012) 

Spouse’s signature. If a joint return, both spouses must sign. Date ▲

Your signature Date

Paid 

Preparer 

Use Only

Print/Type preparer’s name Preparer’s signature Date Check if 

self-employed

PTIN

Firm’s name ▶ Firm’s EIN ▶

Firm’s address ▶ Phone no.