Form 8611 - Recapture of Low-Income Housing Credit
Use this form if you are required to recapture part of the low-income housing credit you claimed in previous years because:
● You correct a noncompliance event within a reasonable period after it is discovered or should have been discovered.
● The qualified basis is reduced because of a casualty loss, provided the property is restored or replaced within a reasonable period.
● The qualified basis of a building decreased from one year to the next. The decrease may result from a change in the eligible basis, or the building no longer meets the minimum set-aside requirements of section 42(g)(1), the gross rent requirement of section 42(g)(2), or the other requirements for the units which are set aside.
● You disposed of the building or an ownership interest in it, and you did not post a satisfactory bond or pledge eligible U.S. Treasury securities as collateral. For details on how to avoid recapture on a building disposition, see section 42(j)(6); Form 8693, Low-Income Housing Credit Disposition Bond; and Rev. Proc. 99-11, 1999-2 I.R.B. 14