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

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Instructions for Form 8609-A

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Department of the Treasury
Internal Revenue Service

Instructions for Form 8609-A
(Rev. December 2008)
Annual Statement for Low-Income Housing Credit
Section references are to the Internal
Revenue Code unless otherwise noted.

General Instructions
What’s New
If you disposed of a building or a certain
interest therein, it is no longer necessary in
certain circumstances to file Form 8693,
Low-Income Housing Credit Disposition
Bond, to prevent recapture of the
low-income housing credit. If you have
already filed Form 8693, you can make an
election to discontinue the maintenance of
the established account. See Recapture and
building dispositions for details.
The method used to calculate basis
reductions for certain buildings has
changed. See Basis reductions for buildings
placed in service after July 30, 2008, for
details.
The method used to calculate the
disallowed credit due to federal grants has
changed for buildings placed in service after
July 30, 2008. See the instructions for line
14 for details.
For buildings placed in service after
December 31, 2007, the credit is no longer
limited by the alternative minimum tax rules.
Form 8586, Low-Income Housing Credit,
has been revised to reflect this change. See
the instructions for line 18 for information on
reporting the credit on Form 8586.
Note. Some of the line numbers on the
March 1991 and November 2003 revisions
of Form 8609, Low-Income Housing Credit
Allocation Certification, and December
2005, December 2006, December 2007,
and December 2008 revisions of Form
8609, Low-Income Housing Credit Allocation
and Certification, differ from other revisions.
In these cases, the line references are
shown in parentheses in these instructions.

Purpose of Form
Form 8609-A is filed by a building owner to
report compliance with the low-income
housing provisions and calculate the
low-income housing credit. Form 8609-A
must be filed by the building owner for each
year of the 15-year compliance period. File
one Form 8609-A for the allocation(s) for the
acquisition of an existing building and a
separate Form 8609-A for the allocation(s)
for rehabilitation expenditures.
If the building owner is a partnership, S
corporation, estate, or trust (pass-through
entity), the entity will complete Form 8609
and Form 8609-A. The entity will attach
Form 8609-A to its tax return. If you are a
partner, shareholder, or beneficiary in the
pass-through entity that owns the building,
file only Form 8586, Low-Income Housing
Credit, to claim the credit using the
information that the entity furnishes you on
Schedule K-1.

Recapture of Credit
If the qualified basis of the building has
decreased from the qualified basis at the
close of the previous tax year, you may
have to recapture parts of the credits
allowed in previous years. See Form 8611,
Recapture of Low-Income Housing Credit.
Recapture and building dispositions.
The disposition of a building, or an interest
therein, will generate the recapture of the
credit. You can prevent the recapture if you
follow the procedures below, relative to the
date of the disposition of the building or the
interest therein.
Building dispositions before July 31,
2008. Disposing of a building or an interest
therein during the tax year will generate
credit recapture, unless you timely post a
satisfactory bond or pledge eligible U.S.
Treasury securities as collateral. For details
on the rules for posting or pledging, see
Rev. Rul. 90-60, 1990-2 C.B. 3, and Rev.
Proc. 99-11, 1991-1 C.B. 275.
Note. You may discontinue maintaining a
bond or pledging eligible U.S. Treasury
securities by making the election described
in Rev. Proc. 2008-60, 2008-43 I.R.B. 1006,
and if 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 Rev. Proc. 2008-60 for the
details on making the election.
Building dispositions after July 30,
2008. 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.

Sale of Building
Upon a change of ownership, the seller
should give the new owner a copy of the
Form 8609 (Parts I and II complete). This
form allows the new owner to substantiate
the credit.

Specific Instructions
Part I—Compliance Information
Item A. Enter the building identification
number (BIN) from Part I, item E of Form
8609.
Item B. You need to file one Form 8609-A
for a newly constructed or existing building.
You need to file a separate Form 8609-A for
section 42(e) rehabilitation expenditures
because such expenditures are treated as
creating a new building.
Item C. In order to claim the credit, you
must have an original, signed Form 8609 (or
copy thereof) issued by a housing credit
Cat. No. 52335U

agency assigning a BIN for the building.
This applies even if no allocation is required
(as in the case of a building financed with
tax-exempt bonds). Check “Yes” to certify
that you have the required Form 8609 in
your records.
Any building owner claiming a credit
without receiving a completed Form
CAUTION 8609 that is signed and dated by an
authorized official of the housing credit
agency and submitting the completed Form
8609 (Part I and Part II) to the IRS is subject
to having the credit disallowed.
Item D. If “No,” stop here and see Form
8611 to find out if you have to recapture part
of the credit allowed in prior years.
Item E. If “Yes,” see the instructions for line
2 to figure the reduced qualified basis. Also,
see Form 8611 to find out if you have to
recapture part of the credit allowed in prior
years.
If “No,” and the entire credit has been
claimed in prior tax years (generally this can
occur after the 11th year for which the credit
has been claimed for the building), do not
complete Part II.

!

Part II—Computation of Credit
Line 1. Generally, the eligible basis of a
building for its entire 15-year compliance
period is the amount of eligible basis
entered on Form 8609, line 7b (Part II, line
1b, on the 1991 revision; line 7 on the 2003,
2005, 2006, 2007, and 2008 revisions).
Basis increases for buildings in
certain high-cost areas. In order to
increase the credit for buildings in certain
high-cost areas, the housing credit agency
may increase the eligible basis of buildings
located in these areas (after adjustments, if
any, for federal subsidies and grants). The
agency may make this increase under the
high cost area provisions of section
42(d)(5)(B). For buildings placed in service
before July 31, 2008, the high cost area
provisions under former section 42(d)(5)(C)
apply.
Gulf Opportunity (GO) Zone, Rita GO
Zone, and Wilma GO Zone. The housing
credit agency may increase the eligible
basis of buildings in these specific zones if
the buildings receive allocations in 2006,
2007, or 2008 and the buildings are placed
in service during the period beginning on
January 1, 2006, and ending on December
31, 2010. See section 1400N(c)(3) for more
information. See Pub. 4492, Information for
Taxpayers Affected by Hurricanes Katrina,
Rita, and Wilma, for a list of the counties
and parishes in these specific zones.
Note. This increase cannot cause the
credit on line 15 to exceed the credit amount
allocated on line 1b, Part I, of Form 8609.
Basis reductions for buildings placed
in service before July 31, 2008. The
amount of eligible basis entered on Form

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Instructions for Form 8609-A

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8609 does not include the cost of land or the
amount of any federal grant received for the
building during the first year of the credit
period. Do not reduce the eligible basis on
line 1 by the amounts of any federal grants
received after the first year of the credit
period. The calculation for line 14 will reduce
the credit by the amount of any federal
grants received during the compliance
period that did not reduce the eligible basis
during the first year of the credit period.
For more details on determining eligible
basis, see the instructions for Form 8609,
line 7b (Part II, line 1b, on the 1991 revision;
line 7 on the 2003, 2005, 2006, 2007, and
2008 revisions).
Basis reductions for buildings placed
in service after July 30, 2008. The
amount of eligible basis entered on Form
8609 does not include the cost of land or the
amount of any costs financed with the
proceeds of a federally funded grant. Do not
reduce the eligible basis on line 1 by the
amounts of any federal grants received after
the first year of the credit period. The
calculation for line 14 will reduce the credit
for any costs financed with the proceeds of
a federal grant.
For more details on determining eligible
basis, see the instructions for Form 8609,
line 7, 2008 revision.
Line 2. Only the portion of the basis on line
1 attributable to the low-income rental units
in the building at the close of the tax year
qualifies for the credit. This is the smaller of
the fractional amount of low-income units to
all residential rental units (the “unit fraction”)
or the fractional amount of floor space of the
low-income units to the floor space of all
residential rental units (the “floor space
fraction”). This fraction must be shown on
line 2 as a decimal carried out to at least
four places (for example, 50/100 = .5000).
Low-income units are units occupied by
qualifying tenants, while residential rental
units are all units, whether or not occupied.
Generally, a unit is not treated as a
low-income unit unless it is suitable for
occupancy, used other than on a transient
basis, and occupied by qualifying tenants.
Section 42(i)(3) provides for certain
exceptions (for example, units that provide
transitional housing for the homeless may
qualify as low-income units). See section
42(i)(3) for more details. Also see section
42(g)(2)(D) regarding the available unit rule
and Regulations section 1.42-5(c)(1)(ix)
regarding the vacant unit rule.
If you dispose of the building, or your
entire interest in the building, before the
close of the tax year, the low-income portion
must be determined on the date you
disposed of the building. If you dispose of
less than your entire interest in the building,
the low-income portion must be determined
at the close of the tax year.
First-year modified percentage. For
the first year of the credit period, you must
use a modified percentage on line 2 to
reflect the average portion of a 12-month
period that the units in a building were
occupied by low-income individuals. Figure
the low-income portion as of the end of each
full month that the building was in service
during the year. Add these percentages
together and divide by 12. Enter the result
on line 2. For example, if a building was in

service for the last 3 full months of your tax
year, and was half occupied by low-income
tenants as of the end of each of those 3
months, then assuming the smaller
fractional amount was the unit fraction, you
would enter .1250 on line 2 ([.5 + .5 + .5] ÷
12 = .1250).
This first year adjustment does not affect
the amount of qualified basis on which the
credit is claimed in the next 9 tax years. In
general, the credit is claimed in those years
by reference to the qualified basis at the
close of each tax year.
Because the first year credit is not
determined solely by reference to the
qualified basis at the close of the year, any
reduction in credit resulting from the
application of the first year adjustment may
be claimed in the 11th year. See the
instructions for line 17.
Line 3. Generally, multiply line 1 by line 2
to figure the portion of the eligible basis of
the building attributable to the low-income
residential rental units.
Imputed qualified basis of zero.
However, the qualified basis of the building
(line 3) is zero if any of the following
conditions apply.
• The minimum set-aside requirement
elected for the project on Form 8609, line
10c (Part II, line 5c, on the 1991 revision), is
not met, or the entire building is out of
compliance with the requirements under
section 42.
• The deep rent skewed test (15-40 test)
elected for the project on Form 8609, line
10d (Part II, line 5d, on the 1991 revision), is
violated. The 15-40 test is not an additional
test for satisfying the minimum set-aside
requirements of section 42(g)(1). The 15-40
test is an election that relates to the
determination of a low-income tenant’s
income. If this test is elected, at least 15% of
all low-income units in the project must be
occupied at all times during the compliance
period by tenants whose income is 40% or
less of the area median gross income (or,
when applicable, national nonmetropolitan
median gross income or national
non-metropolitan median income).
• You disposed of the building or your
entire interest therein during the tax year
and did not follow the procedures (described
earlier under Recapture and building
dispositions) to prevent recapture. In
addition to using an imputed basis of zero
on line 3, you may have to recapture a
portion of credits previously taken. File Form
8611 to figure and report the recaptured
amount. This paragraph affects only those
taxpayers who dispose of the building or
their entire interest therein. Those acquiring
the building (or any interest therein) are not
affected and, if the minimum set-aside
requirements are otherwise satisfied, they
may take a credit for the fraction of the year
the building is owned by them.
Note. If the qualified basis of the building is
zero, or if the building has an imputed
qualified basis of zero, you may not claim a
credit for the building for the tax year. You
must enter zero on lines 3 and 16, and skip
lines 4 through 15, 17, and 18.
At-risk limitation for individuals and
closely held corporations. The basis of
property may be limited if you borrowed
against the property and are protected

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against loss, or if you borrowed money from
a person who has other than a creditor
interest in the property. See section 42(k).
Line 4. If you owned the building (or an
interest therein) for the entire year, enter
zero on line 4 and go to line 5.
Disposal of building or interest therein.
If you disposed of a building or your entire
interest therein during the tax year and you
followed the procedures (described earlier
under Recapture and building dispositions)
to continue to claim the credit, you may
claim a credit based only on the number of
days during the tax year for which you
owned the building or an interest therein.
Similarly, if you previously had no
interest in the building, but you acquired the
building or an interest therein during the tax
year, you may claim a credit based only on
the number of days during the tax year for
which you owned the building or an interest
therein.
The owner who has owned the building
for the longest period during the month in
which the change in ownership occurs is
deemed to have owned the building for that
month. If the seller and new owner have
owned the building for the same amount of
time during the month of disposition, the
seller is deemed to have owned the building
for that month.
Example. Both the buyer and the seller
are calendar-year taxpayers. The sale takes
place on May 25 of a 365-day calendar
year. The qualified basis of the low-income
building is $20,000. The seller and buyer will
each complete a separate Form 8609-A,
and enter $20,000 on line 3.
In this situation, the seller is deemed to
have owned the building for all 31 days of
May. Therefore, the seller owned the
building for 151 days of the 365-day tax
year, and the buyer owned the building for
the remaining 214 days. The seller will
multiply $20,000 by 151/365 to get $8,274.
The seller will enter $8,274 on line 4 of his
Form 8609-A. The buyer will multiply
$20,000 by 214/365 to get $11,726. The
buyer will enter $11,726 on line 4 of her
Form 8609-A.
Pass-through entities. If the building is
owned by a pass-through entity, the entity
does not need to make any adjustment on
line 4, unless the entity either disposes of
the building or its entire interest therein, or
acquires the building or an interest therein
during the tax year (and the entity previously
had no interest in the building). Do not make
an adjustment on line 4 for changes in the
interests of the members of the
pass-through entity during the tax year.
Instead, the entity must reflect these
changes in the amount of credit it passes
through to its members.
Line 5. If the agency has made an
allocation on Form 8609, enter on line 5 the
credit percentage shown on Form 8609,
Part I, line 2. This percentage must be
shown on line 5 as a decimal carried out to
at least four places (for example, 8.13%
would be shown on line 5 as .0813).
Buildings placed in service before
July 31, 2008. If you were allocated a 70%
present value credit percentage for a
building that was not federally subsidized
(as defined on the date the building was
placed in service) and the building later

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receives a federal subsidy, your credit
percentage is reduced to the 30% present
value credit that was in effect during the
month the building was placed in service or
for the month elected under former section
42(b)(2)(A)(ii), whichever applies. The 30%
present value credit applies to the building
for the year the federal subsidy was
received and for the remainder of the
compliance period, whether or not the
federal subsidy is repaid. For the definition
of federal subsidy that was in effect before
July 31, 2008, see section 42(i)(2) (as in
effect before July 31, 2008).
Buildings placed in service after July
30, 2008. If you were allocated a 70%
present value credit percentage for a
building that was not federally subsidized
(as defined on the date the building was
placed in service) and the building later
receives a federal subsidy, your credit
percentage is reduced to the 30% present
value credit that was in effect during the
month the building was placed in service or
for the month elected under section
42(b)(1)[(A)](ii), whichever applies. The 30%
present value credit applies to the building
for the year the federal subsidy was
received and for the remainder of the
compliance period, whether or not the
federal subsidy is repaid. For the definition
of federal subsidy that was in effect after
July 30, 2008, see section 42(i)(2) (as in
effect after July 30, 2008).
Line 6. If you owned the building, or had
an interest therein, for the entire tax year,
multiply line 3 by line 5. If you had no
ownership interest in the building for a
portion of the tax year, multiply line 4 by line
5.

Lines 7 Through 12
If you are not claiming a credit for additions
to qualified basis on line 7, skip lines 7
through 12 and go to line 13.
You may claim a credit for an
addition to qualified basis only if the
CAUTION credit amounts have been allocated
by the housing credit agency to cover these
additions.
Line 7. An addition to qualified basis
results when there is an increase in the
number of low-income units or an increase
in the floor space of the low-income units
over that which existed at the close of the
first year of the credit period (before
application of the modified percentage
calculation). Credits for an addition to
qualified basis are claimed at the reduced
credit percentage of two-thirds of the credit
percentage (expressed as a decimal carried
out to at least four places) on line 5 through
the end of the 15-year compliance period.

!

If you are claiming a credit for additions
to qualified basis, you must subtract the
original qualified basis of the building at the
close of the first year of the credit period
(see Form 8609, line 8a (Part II, line 2a, on
the 1991 revision)) from the building’s
qualified basis entered on line 3. Enter the
result on line 7. If the result is zero or less,
skip lines 8 through 12 and enter the credit
from line 6 on line 13.
Line 8. The determinations and
calculations you make on line 8 follow the
instructions for line 4. Therefore, if you

owned the building (or an interest therein)
for the entire year, enter zero on line 8 and
go to line 9.
Disposal of building or interest therein.
If you disposed of a building or your entire
interest therein during the tax year, see
Disposal of building or interest therein in the
line 4 instructions; and, wherever line 3 and
line 4 are referenced, substitute line 7 and
line 8, respectively.
Pass-through entities. If the building is
owned by a pass-through entity, see
Pass-through entities in the line 4
instructions; and, wherever line 4 is
referenced, substitute line 8 instead.
Line 9. The credit for additions to the
building’s qualified basis is determined using
two-thirds of the credit percentage allowable
for the building’s original qualified basis.
Therefore, one-third of the credit percentage
(expressed as a decimal carried out to at
least four places) on line 5 is not allowed.
Enter on line 9 one-third of the amount
shown on line 5. This amount must be
reported on line 9 as a decimal carried out
to at least four places (for example, if the
credit percentage entered on line 5 is .0813,
one-third of that percentage would be
expressed as .0271). See section 42(f)(3).
Line 10. If you owned the building, or had
an interest therein, for the entire tax year,
multiply line 7 by line 9. If you had no
ownership interest in the building for a
portion of the tax year, multiply line 8 by line
9.
Line 11. Additions to qualified basis must
be adjusted to reflect the average portion of
the year that the low-income units relating to
the increase were occupied. This
adjustment is required if the increase in
qualified basis of the building exceeds the
qualified basis (including additions to
qualified basis) of the building in any prior
taxable year. To determine this adjustment
amount, complete the worksheet on page 4.
Line 14. The eligible basis on line 1 must
be reduced by federal grants received. If a
reduction does not apply because this is the
first year of the credit period (line 1 already
reflects the reduction or noninclusion of a
federal grant), or no federal grant was
received, enter zero on line 14. Otherwise,
follow the instructions that apply for the date
the building was placed in service.
Buildings placed in service before
July 31, 2008. Reduce the eligible basis on
line 1 by the amount of any federal grant for
the building, or the operation thereof,
received during the 15-year compliance
period.
Buildings placed in service after July
30, 2008. Reduce the eligible basis on line
1 by the amount of any costs financed by
the proceeds of a federal grant.
Regardless of the date the building was
placed in service, figure the reduction as
follows.
Step 1. Divide the total amount of all
federal grants received for the building
during the compliance period that did not
already reduce the amount of the eligible
basis (reported on line 1) by the eligible
basis on line 1 of this Form 8609-A. Enter
the result as a decimal carried out to at least
four places.

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Note. If the eligible basis on line 1 of this
Form 8609-A was increased by a
percentage allowable under section
42(d)(5)(B) (former section 42(d)(5)(C) for
buildings placed in service before July 31,
2008), and the increased percentage is
reflected on line 3b of Form 8609, then
increase the total amount of all federal
grants in Step 1 by this percentage increase
and divide this amount by the eligible basis
on line 1 of this Form 8609-A. For example,
if the percentage increase is 130% and all
federal grants total $11,000, multiply
$11,000 by 1.3000 and divide the result
($14,300) by the eligible basis on line 1.
Step 2. Multiply the decimal amount
determined in Step 1 by the credit on line
13. Enter this result on line 14.
Line 16. To determine the amount to enter
on line 16, see the information that follows in
1, 2, 3, and Special rules.
1. If the building is owned completely by
one taxpayer, enter the line 15 credit (after
adjustment for any applicable special rule
below) on line 16.
2. If the building is owned by more than
one taxpayer, and those taxpayers are not
members of a pass-through entity, then the
line 15 credit (after adjustment for any
applicable special rule below) must be
distributed according to each taxpayer’s
respective ownership interest in the building.
For example, if a building is owned by
individuals A and B (60% by A and 40% by
B), each would complete a separate Part II
as follows. Lines 1 through 15 would be the
same for each, assuming no part-year
adjustments are necessary. However, A
would enter 60% of line 15 on line 16, and B
would enter 40% of line 15 on line 16.
Therefore, enter on line 16 your share of the
line 15 credit for the building that relates to
your interest in the building. If your interest
increases or decreases during the tax year,
the change must be taken into account in
determining your share of the line 15 credit.
Note. The aggregate credit claimed by the
owners of the building cannot exceed the
line 15 credit amount for the building.
3. If a pass-through entity is completing
Form 8609-A as the sole owner of the
building, enter the line 15 credit (after
adjustment for any applicable special rule
below) on line 16.
Special rules. If a taxpayer is subject to
recapture upon the disposition of a building
or interest therein because the taxpayer did
not follow the procedures (described earlier
under Recapture and building dispositions)
to prevent recapture, no credit is allowed to
the taxpayer for that percentage of the
interest disposed of by the taxpayer.
(However, see De minimis recapture rule,
later.) The credit allowed to the taxpayer for
the tax year is determined by reference to
the taxpayer’s remaining interest in the
building at the close of the tax year. For
example, assume that a taxpayer owns
100% of a building for 273 days in a
365-day calendar tax year, and 40% of the
building for the remaining 92 days in the tax
year (the taxpayer disposed of a 60%
interest on the last day of September). If the
taxpayer does not follow the procedures to
prevent recapture, the taxpayer’s credit on

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line 16 would be based on 40% of the line
15 credit for the building. Similarly, although
a taxpayer might not be subject to recapture
upon a disposition of a de minimis portion
(explained later) of the taxpayer’s interest in
the building, no credit is allowed to the
taxpayer for the percentage of the interest
disposed of by the taxpayer. The credit
allowed to the taxpayer for the tax year is
determined by reference to the taxpayer’s
remaining interest in the building at the
close of the tax year.
If the taxpayer follows the procedures to
prevent recapture, the taxpayer is allowed
credit for the year both with respect to the
ownership interest disposed of by the
taxpayer and the interest retained by the
taxpayer. For example, again assume that a
taxpayer owns 100% of a building for the
first 273 days in a 365-day calendar tax year
and 40% of the building for the last 92 days
of the year. After following procedures, the
taxpayer’s credit on line 16 would be based
upon 273/365 of 100% (or 74.79%) of the
line 15 credit for the building plus 92/365 of
40% (or 10.08%) of the line 15 credit
amount.
If a taxpayer follows the procedures to
prevent recapture upon the disposition of
the building or upon a disposition of the
taxpayer’s entire interest in the building, the
taxpayer’s line 16 credit amount is
determined by multiplying the line 15 credit
amount by the percentage interest in the
building disposed of by the taxpayer. For
example, if a building is owned by
individuals A and B (60% by A and 40% by
B) and on the last day of the fifth month of
the tax year, C buys A’s 60% interest in the
building and A follows the procedures, then
A would enter 60% of line 15 on line 16.
(Lines 4 and 8 have already taken into
account the 5 months of the tax year that A
held an interest in the building.)
De minimis recapture rule. For
administrative purposes, the Service has
adopted a de minimis rule that applies to

partners in partnerships (other than
partnerships to which section 42(j)(5)(B)
applies) owning interests in qualified
low-income buildings. The rule allows a
partner to elect to avoid or defer recapture
resulting from a disposition of interest in a
partnership without posting bond (in a
situation where it was necessary to post
bond to avoid or defer recapture) until the
partner has disposed of more than 331/3 %
of the partner’s greatest total interest in the
qualified low-income building through the
partnership. See Rev. Rul. 90-60, 1990-2
C.B. 3, for more information on the de
minimis rule.
Upon application by the building owner,
the IRS may waive any recapture of the
low-income housing credit for any de
minimis error in complying with the minimum
set-aside requirements.
Line 17. The first-year credit may have
been reduced based on the number of full
months the building was in service. The
deferred balance of the credit for the first
year is allowed in the 11th year. Include it on
line 17 as a positive amount.
For example, see the example under
First-year modified percentage, earlier. If
this is the 11th year, enter .8750 times the
eligible basis of the building (line 1) times
the credit percentage (line 5). The factor
.8750 is 1.0000 minus .1250, the modified
percentage figured for year one in the
example.
Line 18. For buildings placed in service
after December 31, 2007, the credit is no
longer limited by the alternative minimum
tax rules. The amount on line 18 will be
reported on Form 8586 as follows.
Credit for buildings placed in service
before January 1, 2008. Report this
amount on line 3 of Form 8586.
Credit for buildings placed in service
after December 31, 2007. Report this
amount on line 10 of Form 8586.

Paperwork Reduction Act Notice. We
ask for the information on these forms 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:
Recordkeeping . . . . . . . . . . . .
Learning about the law or the
form . . . . . . . . . . . . . . . . . . .
Preparing and sending the form
to the IRS . . . . . . . . . . . . . . . .

1 hr., 59 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 Internal Revenue Service at the
address listed in the instructions for the tax
return with which this form is filed.

Line 11 Worksheet (Keep for Your Records)
1 Enter the qualified basis of the building from line 3 of this tax year’s Form 8609-A . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1

2 Multiply the amount on line 1 of the previous year’s Form 8609-A by the amount on line 2 of that Form 8609-A . . . . . . . . .

2

3 Increased qualified basis. Subtract line 2 above from line 1 above. But if line 2 above is more than zero but less than the
original qualified basis of the building entered on Form 8609, line 8a (Part II, line 2a on the 1991 revision), then enter the
amount from line 7 of this Form 8609-A instead
Note. If line 3 above is zero or less, do not complete the rest of this worksheet. Instead, enter -0- on line 11 of Form
8609-A and go to line 12. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3

4 Modified percentage. For each month during the tax year, figure the increase, if any, in the low-income portion of the building
for that month over the low-income portion of the building at the close of the previous tax year (the amount on line 2 of the
previous tax year’s Form 8609-A). For example, if the previous tax year’s low-income portion of .5000 remained at .5000 for
the first 9 months of this tax year and then increased to .7500 for October, November, and December, then subtract .5000
from .7500 to get an increase of .2500 for each month. Add these amounts together, divide by 12, and enter the result. (This
amount must be shown as a decimal carried out to at least four places (for example, .2500 + .2500 + .2500 = .7500, divided
by 12 = .0625.)) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4

5 Increased qualified basis entitled to reduced credit. Multiply line 4 above by Form 8609-A, line 1 . . . . . . . . . . . . . . . . . . .

5

6 Increased qualified basis not entitled to reduced credit. Subtract line 5 above from line 3 above . . . . . . . . . . . . . . . . . . .

6

7 Line 11 modification. Multiply line 6 above by two-thirds of the amount on line 5 of Form 8609-A. Enter the result here and on
line 11 of Form 8609-A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7

-4-

7 hr., 38 min.
1 hr., 47 min.