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. 1545-0123

2016

▶ 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 2015. Enter the amount from line 14 of the 2015 Form 4626
Minimum tax credit carryforward from 2015. Enter the amount from line 9 of the 2015 Form 8827
Enter any 2015 unallowed qualified electric vehicle credit (see instructions) . . . . . . .
Add lines 1, 2, and 3 . . . . . . . . . . . . . . . . . . . . . . . . .
Enter the corporation’s 2016 regular income tax liability minus allowable tax credits (see
instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6
Is the corporation a “small corporation” exempt from the AMT for 2016 (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 2016 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 2017. 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.

What's New
Modifications to the election to accelerate
the minimum tax credit in lieu of claiming
the bonus depreciation allowance apply to
qualified property placed in service in tax
years ending after December 31, 2015. See
the instructions for line 7b.

Purpose of Form
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.

Who Should File
Form 8827 should be filed by corporations
that had:
• An AMT liability in 2015,
• A minimum tax credit carryforward from
2015 to 2016, or
• A qualified electric vehicle credit not
allowed for 2015 (see the instructions for
line 3).

Line 3
Enter any qualified electric vehicle credit
not allowed for 2015 solely because of
tentative minimum tax limitations.

Line 5
Enter the corporation’s 2016 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 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).

Line 6
See the 2016 Instructions for Form 4626 to
find out if the corporation is treated as a
“small corporation” exempt from the AMT
for 2016. If the corporation is a “small
corporation” exempt from the AMT, see
section 38(c)(6) before completing line 6 for
special rules that apply to controlled
corporate groups.

Line 7b
Election To Accelerate Minimum Tax
Credit in Lieu of Bonus Depreciation
A corporation can elect to claim unused
minimum tax credits in lieu of claiming the
special depreciation allowance (bonus
depreciation) for qualified property (as
defined in section 168(k)(2)) placed in
service during the tax year. 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

For Paperwork Reduction Act Notice, see instructions.

1
2
3
4
5

6
7a
7b
7c
8a

8b

8c
9

allowance, complete the Worksheet for
Calculating the Refundable Minimum Tax
Credit Amount, later in the instructions.
Enter the amount from line 9 of the
worksheet on Form 8827, line 7b. All
others, enter zero on line 7b.
For fiscal year corporations with tax
years beginning in 2015 and ending in
2016, the limitation on the bonus
depreciation amount is calculated
differently for property placed in service
during that fiscal year that is subject to
section 168(k)(4), as amended by Public
Law 114-113. The fiscal year corporation
should modify the worksheet to reflect that
different calculation. See section 168(k)(4),
as modified.
If a partnership has a single corporate
partner that owns (directly or indirectly)
more than 50% of the capital and profits
interests in the partnership at all times
during the tax year, then each partner
takes into account its distributive share of
partnership depreciation in determining its
bonus depreciation amount. For more
information, see section 168(k)(4)(D)(iii).
For more information on the election to
accelerate the minimum tax credit in lieu of
claiming the 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.

Cat. No. 13008K

Form 8827 (2016)

Page 2

Form 8827 (2016)

Worksheet for Calculating the Refundable Minimum Tax Credit Amount. See instructions. Keep for your records.
1
Enter depreciation (including the special depreciation allowance) that would have been allowed for any
qualified property placed in service during the tax year, if sections 168(k)(1) and 168(k)(2)(F) had applied
to such property . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1
2
Enter depreciation for any qualified property placed in service during the tax year, figured without regard
to sections 168(k)(1) and 168(k)(2)(F) . . . . . . . . . . . . . . . . . . . . . . .
2
3
Subtract line 2 from line 1 . . . . . . . . . . . . . . . . . . . . . . . . . .
3
4
Multiply line 3 by 20% (0.20) . . . . . . . . . . . . . . . . . . . . . . . . .
4
5
Enter the minimum tax credit for the corporation's first tax year ending after 2015 . . . . . . . . .
5
6
Multiply line 5 by 50% (0.50) . . . . . . . . . . . . . . . . . . . . . . . . .
6
7
Enter any unused minimum tax credit carryforward from tax years beginning before 2016 . . . . .
7
8
8
Enter the smaller of line 6 or line 7 . . . . . . . . . . . . . . . . . . . . . . . .
Refundable minimum tax credit. Enter the smaller of line 4 or line 8. Enter the amount from line 9 on
9
Form 8827, line 7b
. . . . . . . . . . . . . . . . . . . . . . . . . . . .
9
S corporations that make the election to
accelerate the minimum tax 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.

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” on
the dotted line to the left of the line 8a and
8b entry spaces.
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.

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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
business taxpayers filing this form is
approved under OMB control number
1545-0123 and is included in the estimates
shown in the instructions for their business
income tax return.
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.