8827 Credit for Prior Year Minimum Tax - Corporations

Form

8827

Department of the Treasury
Internal Revenue Service

Credit for Prior Year Minimum Tax—Corporations
▶

OMB No. 1545-1257

2013

▶ Attach to the corporation’s tax return.
Information about Form 8827 and its instructions is at www.irs.gov/form8827.

Employer identification number

Name

1
2
3
4
5

Alternative minimum tax (AMT) for 2012. Enter the amount from line 14 of the 2012 Form 4626
Minimum tax credit carryforward from 2012. Enter the amount from line 9 of the 2012 Form 8827
Enter any 2012 unallowed qualified electric vehicle credit (see instructions) . . . . . . .
Add lines 1, 2, and 3 . . . . . . . . . . . . . . . . . . . . . . . . .
Enter the corporation’s 2013 regular income tax liability minus allowable tax credits (see
instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6
Is the corporation a “small corporation” exempt from the AMT for 2013 (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 2013 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 Form 1120, Schedule J, Part II, line
19c (or the applicable line of your return) . . . . . . . . . . . . . . . . . .
9
Minimum tax credit carryforward to 2014. Subtract line 8a from line 4. Keep a record of this
amount to carry forward and use in future years . . . . . . . . . . . . . . . .

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

Code (for example, if you are filing Form
1120, subtract any credits on Schedule J,
Part I, line 5a, through 5c, from the amount
on Schedule J, Part I, line 2).

Purpose of Form

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 2013 Instructions for Form 4626 to
find out if the corporation is treated as a
“small corporation” exempt from the AMT
for 2013. 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
Form 8827 should be filed by corporations
that had:
• An AMT liability in 2012,
• A minimum tax credit carryforward from
2012 to 2013, or
• A qualified electric vehicle credit not
allowed for 2012 (see the instructions for
line 3).

Line 3
Enter any qualified electric vehicle credit
not allowed for 2012 solely because of
tentative minimum tax limitations.

Line 5
Enter the corporation’s 2013 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

Line 7b
Round 2 extension property. If the
corporation made an election under section
168(k)(4) to claim pre-2006 unused
minimum tax credits in lieu of claiming the
special depreciation allowance for certain
property for either its first tax year ending
after March 31, 2008, its first tax year
ending after December 31, 2008, or its first
tax year ending after December 31, 2010,
the elections continue to apply to round 2
extension property (as defined in section
168(k)(4)(I)), unless the corporation made
an election not to apply the section 168(k)
(4) election to round 2 extension property
for its first tax year ending after December
31, 2010.

Cat. No. 13008K

1
2
3
4
5

6
7a
7b
7c
8a

8b

8c
9

For 2013, round 2 extension property
generally is long production period
property and noncommercial aircraft if
acquired after March 31, 2008, and placed
in service after December 31, 2011, and
before January 1, 2014.
Once made, the elections cannot be
revoked without IRS consent.
Round 3 extension property. If the
corporation made an election to claim
pre-2006 unused minimum tax credits in
lieu of claiming the special depreciation
allowance for certain qualified property for
either its first tax year ending after March
31, 2008, its first tax year ending after
December 31, 2008, or its first tax year
ending after December 31, 2010, the
election continues to apply to round 3
extension property (as defined in section
168(k)(4)(J)), unless the corporation makes
an election not to apply the section 168(k)
(4) election to round 3 extension property.

Form 8827 (2013)

Page 2

Form 8827 (2013)

Worksheet for Calculating the Refundable Minimum Tax Credit Amount (keep for your records)
1

Enter depreciation (including the special depreciation allowance) that would have been
allowed for round 2 extension property placed in service during the tax year, or round 3
extension property placed in service during the tax year, if section 168(k)(1) had applied to
such property . . . . . . . . . . . . . . . . . . . . . . . . .

2

Enter depreciation for round 2 extension property placed in service during the tax year, or
round 3 extension property placed in service during the tax year, figured without regard to
section 168(k)(1)
. . . . . . . . . . . . . . . . . . . . . . . .

3
4
5
6
7
8

Subtract line 2 from line 1 . . . . . . . . . . . . . . . . . . . . .
Multiply line 3 by 20%
. . . . . . . . . . . . . . . . . . . . . .
Enter any unused minimum tax credit carryforward from tax years beginning before 2006 . .
Multiply line 5 by 6% . . . . . . . . . . . . . . . . . . . . . . .
Enter the smaller of line 6 or $30,000,000 . . . . . . . . . . . . . . . .
Enter any bonus depreciation amounts determined under section 168(k)(4)(C) attributable
to round 2 extension property or round 3 extension property as appropriate, for all
preceding tax years ending after December 31, 2010 . . . . . . . . . . . .

9
10
11

Subtract line 8 from line 7. If zero or less, enter -0- . . . . . . . . . . . . .
Bonus depreciation amount. Enter the smaller of line 4 or line 9 . . . . . . . . .
Enter the amount from line 8 allocated to the minimum tax credit carryforward shown on
line 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Maximum bonus depreciation amount allocable to the minimum tax credit. Subtract line 11
from line 5 . . . . . . . . . . . . . . . . . . . . . . . . . .
Refundable minimum tax credit. Enter the smaller of line 12 or line 10 in appropriate
columns. Enter the total of line 13, columns (a) and (b) on Form 8827, line 7b . . . .

12
13

Generally, round 3 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 qualified
property placed in service after December
31, 2012, and before January 1, 2014
(before January 1, 2015, for long
production period property and
noncommercial aircraft). See sections
168(k)(2) and 168(k)(4)(J).

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).
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 the
Built-in Gains Tax Worksheet in the
instructions for those forms.

If the corporation did not make a section
168(k)(4) election for either its first tax year
ending after March 31, 2008, its first tax
year ending after December 31, 2008, or its
first tax year ending after December 31,
2010, the corporation may elect, for its first
tax year ending after December 31, 2012,
to claim pre-2006 unused minimum tax
credits in lieu of claiming the special
depreciation allowance for round 3
extension property only.
Once made, this election cannot be
revoked without IRS consent.
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
13, columns (a) and (b), of the worksheet
on Form 8827, line 7b. All others, enter
zero on line 7b.
For more information on the elections to
accelerate the minimum tax credit in lieu of
claiming special depreciation allowance,
see section 168(k)(4). For more information
on the special depreciation allowance, see
the Instructions for Form 4562 and Pub.
946, How To Depreciate Property.

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.

(a)

(b)

Round 2

Round 3

extension property extension property

1

2
3
4
5
6
7

8
9
10
11
12
13

Paperwork Reduction Act Notice. We
ask for the information on this form 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 average time
is: Recordkeeping, 6 hr., 13 min.,
Learning about the law or the form, 1 hr.,
47 min., Preparing and sending the form
to the IRS, 1 hr., 58 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. See
the instructions for the tax return with
which this form is filed.