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Screen 8609 - Low-Income Housing Credit Allocation and Certification (1120)

General Information

This field and the information in the
Elect to begin credit period the first year after in service (Section 42(f)(1))
 field are used to determine the applicable credit period for calculating Form 8609-A.
If this field is blank and an amount is entered in the
Original qualified building basis
 field in the 8609-2 screen, the question on Form 8609 defaults to No.
UltraTax/1120 also uses this field and the
Date building placed in service
 field to determine the applicable credit period for calculating Form 8609-A.

Annual Statement for Low-Income Housing Credit

For the first year of the credit period, you must use a modified percentage to reflect the average portion of a 12-month period.
Form 8609-A, Part II will not calculate if a
2
 is entered in this field.
If the building was disposed of or acquired during the tax year, the credit claimed must be based only on the number of months during the tax year for which the taxpayer owned or had an interest in the building. If an amount is entered in this field, the credit is calculated on this amount.
Enter the additions to the qualified basis resulting from an increase in the number of low-income units or an increase in the floor space over that which existed at the close of the first year of the credit period. Credits for an addition to qualified basis are claimed at the reduced percentage of two-thirds of the credit percentage on Form 8609-A, line 5.
If claiming a credit based on the additions to qualified basis and the building was disposed of or acquired during the tax year, the credit claimed must be based only on the number of months during the tax year for which the taxpayer owned or had an interest in the building. If an amount is entered in this field, the credit is calculated on this amount.
If there is an increase in qualified basis of the building from the previous tax year, enter the required adjustment to reflect the average portion of the year that the low-income units relating to the increase were occupied.
This amount should not be greater than the maximum housing credit dollar amount allowable on Form 8609.
If the first-year credit was reduced based on the number of full months the building was in service, enter the deferred balance of the credit for the first year in the 11th year of the credit. The amount entered increases the current-year credit.
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