Interest Computation Under the Look-Back Method for Property Depreciated Under the Income Forecast Method

The Small Business Job Protection Act of 1996 requires taxpayers whom claim depreciation deductions on property placed in service after September 13, 1995, under the income forecast method to pay (allow taxpayers to receive) interest based on the recalculation of depreciation. Form 8866 must be used in order to compute and report interest due or to be refunded under IRC 167 (g)(2). The IRS uses Form 8866 to determine if the interest has been figured correctly.

The latest form for Interest Computation Under the Look-Back Method for Property Depreciated Under the Income Forecast Method expires 2023-12-31 and can be found here.