Form 84r - Recapture Of Idaho Small Employer Real Property Improvement Tax Credit (Page 2 of 2) in pdf

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Instructions for Idaho Form 84R

07-23-15

GENERAL INSTRUCTIONS

Line 4. Multiply line 2 by line 3 to compute the credit originally

earned for each property listed.

Use Form 84R to compute the increase in tax and reduction

to credit carryover for the recapture of the small employer real

Line 5. Enter the month, day, and year the property ceased to

property improvement tax credit (SE-RPITC).

qualify as SE-RPITC property.

If you claimed the SE-RPITC in an earlier year and don't meet

Line 6. Don't enter partial years. If the property was held less

the tax incentive criteria you certified to on Idaho Form 89SE, you

than 12 months, enter zero. If you didn't meet the tax incentive

must recapture all the SE-RPITC claimed in the earlier years.

criteria, enter zero.

You must recompute the credit if you earned it in an earlier year,

PART III

but disposed of the property before the end of the five-year

recapture period. You must also recompute the credit on any

Line 7. Enter the appropriate recapture percentage from the

property ceasing to qualify as SE-RPITC property. Property

following table.

moved from Idaho within the first five years ceases to qualify as

SE-RPITC property and is subject to recapture.

If the number of full years

Then the recapture

Recapture may be necessary when:

on Form 84R, line 6 is...

percentage is...

● An S corporation shareholder's interest is reduced by a sale,

100

redemption, or other disposition of the shareholder's stock, or

by the corporation's issuance of more shares.

● A partner's proportionate interest in the general profits of the

partnership (or in a particular item of property) is reduced.

● A trust's, estate's, or beneficiary's proportionate interest in the

income of the trust or estate is reduced.

5 or more

S corporations, partnerships, trusts, and estates that pass through

SE-RPITC to the shareholders, partners, or beneficiaries must

provide Form ID K-1 reporting the recapture amount and including

in Part E, Supplemental Information, details on the year(s) the

Line 9. Add all amounts on line 8. If you've used more than one

credit being recaptured was originally earned.

Form 84R or separate sheets to list additional items on which you

computed an increase in tax, write to the left of the entry space

Any resulting tax from recapture of credits claimed in prior years

"Tax from attached" and the total tax from the separate sheets.

must be added to the tax otherwise determined in the year of

Include the amount in the total for line 9.

recapture. Recapture of credits not claimed in prior years reduces

the amount of credit carryover available to the current year.

Line 10. Enter the amount of recapture of SE-RPITC that's being

passed to you from S corporations, partnerships, trusts, and

SPECIFIC INSTRUCTIONS

estates. This amount is reported on Form ID K-1, Part D, line 16.

Instructions are for lines not fully explained on the form.

If recapture is necessary due to a reduction of a shareholder's

proportionate stock interest in an S corporation, reduction in the

interest in the general profits of a partnership, or reduction in the

PART I

proportionate interest in the income of the trust or estate, include

Lines A through E. Describe the property for which you must

that recapture on line 10 as well.

recompute the SE-RPITC. Fill in lines 1 through 8 in Parts II and

III for each property on which you are recomputing the credit. Use

Line 11. Add lines 9 and 10 to determine the amount of credit

a separate column for each item. Use an additional Form 84R,

subject to recapture.

or other schedule with the same information as required on Form

84R, if you have SE-RPITC recapture on more than five items.

Line 12. If you're an S corporation, partnership, trust, or estate,

enter the amount of credit recapture that passed through to

shareholders, partners, or beneficiaries. Don't include any

PART II

recapture on this line for shareholders, partners, or beneficiaries

S corporations, partnerships, trusts, and estates that have credit

for whom you're paying the tax.

subject to recapture must complete lines 1 through 9 to determine

the amount of credit recapture.

Line 13. If you didn't use all the credit you originally computed

either in the year earned or in a carryover year, you won't have to

Shareholders, partners, and beneficiaries will use the information

pay tax from recapture of the amount of the credit you didn't use.

provided by the S corporation, partnership, trust, or estate to

report their pass-through share of the credit to be recaptured on

Compute the unused portion of the original credit from Form 84R,

line 10. If the only recapture you are reporting is from a pass-

line 4, or that was passed through to you from an S corporation,

through entity, skip lines 1 through 9 and begin on line 10.

partnership, or trust on a separate sheet and enter the amount on

this line. Don't enter more than the tax from recapture on

Line 1. Enter the month, day, and year that the property was first

line 11.

available for service.

Line 15. This is the total increase in tax. Enter it on this line and

Line 2. Enter the cost or other basis of the property used to

on Form 44, Part II, line 4. DON'T use this amount to reduce your

compute the original SE-RPITC.

current year's SE-RPITC from Form 84.

Form 84r - Recapture Of Idaho Small Employer Real Property Improvement Tax Credit Page 2

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