Form 8827 Credit for Prior Year Minimum Tax Corporations

Version A, Cycle 1

Form

8827

Credit for Prior Year Minimum Tax—Corporations

Department of the Treasury
Internal Revenue Service

▶

OMB No. 1545-1257

2011

Attach to the corporation’s tax return.

Employer identification number

Name

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Alternative minimum tax (AMT) for 2010. Enter the amount from line 14 of the 2010 Form 4626
Minimum tax credit carryforward from 2010. Enter the amount from line 9 of the 2010 Form 8827
Enter any 2010 unallowed qualified electric vehicle credit (see instructions) . . . . . . .
Add lines 1, 2, and 3 . . . . . . . . . . . . . . . . . . . . . . . . .
Enter the corporation’s 2011 regular income tax liability minus allowable tax credits (see
instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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Is the corporation a “small corporation” exempt from the AMT for 2011 (see instructions)?
• Yes. Enter 25% of the excess of line 5 over $25,000. If line 5 is $25,000 or less, enter -0• No. Complete Form 4626 for 2011 and enter the tentative minimum tax from line 12 . . .
7a Subtract line 6 from line 5. If zero or less, enter -0- . . . . . . . . . . . . . . .
b For a corporation electing to accelerate the minimum tax credit, enter the bonus depreciation
amount attributable to the minimum tax credit (see instructions) . . . . . . . . . . .
c Add lines 7a and 7b . . . . . . . . . . . . . . . . . . . . . . . . .
8a Enter the smaller of line 4 or line 7c. If the corporation had a post-1986 ownership change or
has pre-acquisition excess credits, see instructions . . . . . . . . . . . . . . .
b Current year minimum tax credit. Enter the smaller of line 4 or line 7a here and on Form 1120,
Schedule J, Part I, line 5d (or the applicable line of your return). If the corporation had a
post-1986 ownership change or has pre-acquisition excess credits, see instructions. If you
made an entry on line 7b, go to line 8c. Otherwise, skip line 8c . . . . . . . . . . .
c Subtract line 8b from line 8a. This is the refundable amount for a corporation electing to
accelerate the minimum tax credit. Include this amount on 2 Form 1120, Schedule J, Part II, line
19c (or the applicable line of your return) . . . . . . . . . . . . . . . . . .
Minimum tax credit carryforward to 2011. Subtract line 8a from line 4. Keep a record of this
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amount to carry forward and use in future years . . . . . . . . . . . . . . . .

DRAFT AS OF
May 13, 2011

Instructions

Line 6

Corporations use Form 8827 to figure the
minimum tax credit, if any, for AMT incurred in
prior tax years and to figure any minimum tax
credit carryforward.

See the 2011 Instructions for Form 4626 to find
out if the corporation is treated as a “small
corporation” exempt from the AMT for 2011. If
the corporation is a “small corporation” exempt
from the AMT, see section 38(c)(5) before
completing line 6 for special rules that apply to
controlled corporate groups, regulated
investment companies, and real estate
investment trusts.

Who Should File

Line 7b

Form 8827 should be filed by corporations that
had:
• An AMT liability in 2010,
• A minimum tax credit carryforward from 2010
to 2011, or
• A qualified electric vehicle credit not allowed
for 2010 (see the instructions for line 3).

A corporation can elect (under section 168(k)(4))
to accelerate its use of unused minimum tax
credit carryforwards from tax years beginning
before 2006 and obtain a refundable credit in lieu
of any special depreciation allowance for eligible
property (discussed later). If the election is made,
the corporation must do the following.
• Forgo the special depreciation allowance for
the eligible property, and
• Use the straight-line method of depreciation of
such property.
An election to claim pre-2006 unused research
credits or minimum tax credits in lieu of claiming
the special depreciation allowance made by a
corporation for either its first tax year ending
after March 31, 2008, or its first tax year ending
after December 31, 2008, continues to apply to
certain extension property (as defined in section
168(k)(4)(H)), unless the corporation made an

Section references are to the Internal Revenue
Code unless otherwise noted.

Purpose of Form

Line 3
Enter any qualified electric vehicle credit not
allowed for 2010 solely because of tentative
minimum tax limitations.

Line 5
Enter the corporation’s 2011 regular income tax
liability (as defined in section 26(b)) minus any
credits allowed under Chapter 1, Subchapter A,
Part IV, subparts B, D, E, and F of the Internal
Revenue Code (for example, if you are filing
Form 1120, subtract any credits on Schedule J,
line 5a, through 5c, from the amount on
Schedule J, line 2).

Cat. No. 13008K

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7b
7c
8a

8b

8c
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election not to apply the election made under
section 168(k)(4) to extension property for its first
tax year ending after December 31, 2008.
Generally, extension property is long production
period property and noncommercial aircraft if
acquired after March 31, 2008, and placed in
service after December 31, 2009, but before
January 1, 2011.
An election to claim pre-2006 unused
minimum tax credits in lieu of claiming the
special depreciation allowance made by the
corporation for either its first tax ending after
March 31, 2008, or its first tax year ending after
December 31, 2008, continues to apply to round
2 extension property (as defined in section
168(k)(4)(l)) unless the corporation makes an
election not to apply the original election to
round 2 extension property. Generally round 2
extension property is property that is eligible
qualified property solely because it meets the
requirements under the extension of the
additional special depreciation allowance to
certain property placed in service after
December 31, 2010. See section 168(k)(4)(l).
Note. If the corporation did not make the
election for either its first tax year ending after
March 31, 2008, or its first tax year ending after
December 31, 2008, the corporation may elect
for its first tax year ending after December 31,
2010, to claim pre-2006 unused minimum tax
credits in lieu of claiming the special depreciation
allowance only for round 2 extension property.
Once made, these elections cannot be
revoked without IRS consent.

Form 8827 (2011)

Version A, Cycle 1
Page 2

Form 8827 (2011)

Worksheet for Calculating the Refundable Minimum Tax Credit Amount (keep for your records)
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Enter depreciation (including the special depreciation allowance) that would have been

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allowed for extension property placed in service in 2010, or round 2 extension property
placed in service after December 31, 2010, as appropriate, if section 168(k)(1) and (k)(5)
had applied to such property . . . . . . . . . . . . . . . . . . .
Enter depreciation for eligible extension property, placed in service in 2010 or round 2
extension property placed in service after December 31, 2010, as appropriate, figured
without regard to section 168(k)(1) and (k)(5). . . . . . . . . . . . . . .
Subtract line 2 from line 1 . . . . . . . . . . . . . . . . . . .
Multiply line 3 by 20%
. . . . . . . . . . . . . . . . . . . .
Enter any unused research credit carryforward from tax years beginning before 2006
Enter any unused minimum tax credit carryforward from tax years beginning before 2006
Add line 5 and line 6 . . . . . . . . . . . . . . . . . . . . .
Multiply line 7 by 6% . . . . . . . . . . . . . . . . . . . . .
Enter the smaller of line 8 or $30,000,000 . . . . . . . . . . . . . .
Enter any bonus depreciation amounts determined under section 168(k)(4)(C)
attributable to extension property or round 2 extension property, as appropriate, for
all preceding tax years ending after March 31, 2008 . . . . . . . . . . .
Subtract line 10 from line 9. If zero or less, enter -0-.
. . . . . . . . . .
Bonus depreciation amount. Enter the smaller of line 4 or line 11 . . . . . .
Note. If you do not have a research credit carryforward, or if you choose not to
allocate bonus depreciation amounts to research credit carryforwards, skip lines 13
and 14 and enter -0- on line 15.
Enter the amount from line 10 allocated to the research credit carryforward shown on line 5
Maximum bonus depreciation amount allocable to the research credit. Subtract line 13 from line 5
Refundable research credit. Enter the smaller of line 14 or the amount on line 12
that you choose to allocate to the research credit
. . . . . . . . . . .
Subtract line 15 from line 12
. . . . . . . . . . . . . . . . . .
Enter the amount from line 10 allocated to the minimum tax credit carryforward shown on line 6
Maximum bonus depreciation amount allocable to the minimum tax credit. Subtract
line 17 from line 6 . . . . . . . . . . . . . . . . . . . . . .
Refundable minimum tax credit. Enter the smaller of line 18 or line 16 in appropriate
columns. Enter the total of line 19, columns (a) and (b) on Form 8827, line 7b . .

(a)
Extension property

(b)
Round 2 extension
property

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DRAFT AS OF
May 13, 2011

If the corporation elects to accelerate the
minimum tax credit and obtain a refundable
credit in lieu of the special depreciation
allowance, complete the Worksheet for
Calculating the Refundable Minimum Tax
Credit Amount above. Enter the total of line
19, columns (a) and (b), on Form 8827, line
7b. All others, enter zero on line 7b.
For more information on the election to
accelerate the research or minimum tax credit
for eligible property, including information on
how to make the elections, see Rev. Proc.
2008-65, 2008-44 I.R.B. 1082, available at
http://www.irs.gov/irb/2008-44_ IRB/
ar15.html; Rev. Proc. 2009-16, 2009-06 I.R.B.
449, available at http://www.irs.gov/
irb/2009-06_IRB/ar10.html; and Rev. Proc.
2009-33, 2009-29 I.R.B. 150, available at
http://www.irs.gov/irb/2009-29_IRB/ar09.html.
For more information on the special
depreciation allowance, see the Instructions
for Form 4562 and Pub. 946, How To
Depreciate Property.
S corporations that make the election to
accelerate the credit can use the credit only
against the built-in gains tax. See the
instructions for Schedule D (Form 1120S), line
20. Corporations that file Form 1120-REIT or
Form 1120-RIC must apply the credit first
against the built-in gains tax, if any, and
reduce the refundable credit by the amount

so applied. See the instructions for line h of
the Built-in Gains Tax Worksheet in the
separate instructions for those forms.

Line 8
If the corporation had a post-1986 ownership
change (as defined in section 382(g)), there
may be a limit on the amount of pre-change
minimum tax credits that can be applied
against the corporation’s tax for any tax year
ending after the ownership change. See
section 383 and the related regulations. To
figure the amount of the pre-change credit,
the corporation must allocate the credit for
the change year between the pre-change
period and the post-change period. The
corporation must use the same method of
allocation (ratable allocation or
closing-of-the-books) for purposes of
sections 382 and 383. See Regulations
section 1.382-6 for details.
Also, there may be a limit on the use of
pre-acquisition excess credits of one
corporation to offset the tax attributable to
recognized built-in gains of another
corporation. See section 384 for details.
If either limit applies, attach a computation
of the allowable minimum tax credit, enter the
amount on lines 8a and 8b, and write “Sec.
383” or “Sec. 384” in the dotted line to the left
of the line 8a and 8b entry spaces.

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