Low-Income Housing Credit                                                           OMB No. 1545-0984

Form (Rev. December 2023)8586                                   Attach to your tax return.                                              Attachment   
Department of the Treasury                     Go to www.irs.gov/Form8586 for the latest information.                                   Sequence No. 36a
Internal Revenue Service
Name(s) shown on return                                                                                                   Identifying number

1          Number of Forms 8609-A attached  .       . .     . . .    .    .    . . .   . .  .    .  .   .  
2          Has there been a decrease in the qualified basis of any buildings accounted for on line 1 since the close of the
           preceding tax year?        Yes       No          If “Yes,” enter the building identification numbers (BINs) of the
           buildings that had a decreased basis. If you need more space, attach a schedule.
           (i)                          (ii)                            (iii)                         (iv)
3          Current year credit from attached Form(s) 8609-A (see instructions)  .      . .  .    .  .   .  .  .   .  .   .    .      3
4          Low-income housing credit from partnerships, S corporations, estates, and trusts  .          .  .  .   .  .   .    .      4
5          Add lines 3 and 4. Estates and trusts, go to line 6. Partnerships and S corporations, stop here and report 
           this amount on Schedule K. All others, stop here and report this amount on Form 3800, Part III, line 4d  .         .      5
6          Amount allocated to beneficiaries of the estate or trust (see instructions)  .   .    .  .   .  .  .   .  .   .    .      6
7          Estates and trusts, subtract line 6 from line 5. Report this amount on Form 3800, Part III, line 4d .     .   .    .      7
Future Developments                                                              Recordkeeping
For the latest information about developments related to Form 8586 and           Keep a copy of this Form 8586 and all Forms 8609, 8609-A, and 8611 
its instructions, such as legislation enacted after they were published,         for 3 years after the 15-year compliance period ends.
go to www.irs.gov/Form8586.
                                                                                 Specific Instructions
What’s New                                                                       Line 2. A decrease in qualified basis will result in recapture if the 
Lines 5 and 7. We removed the column references in lines 5 and 7 to              qualified basis at the close of the tax year is less than the qualified basis 
accommodate the Form 3800 redesign.                                              at the close of the first year of the credit period.
General Instructions                                                               If the reduction in qualified basis at the close of the tax year also 
Section references are to the Internal Revenue Code unless otherwise             results in a violation of the minimum set-aside requirement, then no 
noted.                                                                           credit is allowable for the year.
                                                                                 Line 3. The credit for the year is figured on Form 8609-A for each 
Purpose of Form                                                                  building. Attach a copy of each Form 8609-A you completed for the tax 
Use Form 8586 to claim the low-income housing credit. This general               year to Form 8586. Enter on line 3 the total credit for attached Form(s) 
business credit is allowed for each new qualified low-income building            8609-A.
placed in service after 1986. Generally, it is taken over a 10-year credit       Line 6. Estates or trusts. Allocate the low-income housing credit on 
period.                                                                          line 5 between the estate or trust and the beneficiaries in the same 
Taxpayers, other than partnerships, S corporations, estates, or trusts,          proportion as income was allocated and enter the beneficiaries’ share 
whose only source of this credit is from those pass-through entities, are        on line 6.
not required to complete or file this form. Instead, they can report this          If the estate or trust is subject to the passive activity rules, include on 
credit directly on Form 3800.                                                    line 4 any low-income housing credits from passive activities disallowed 
                                                                                 for prior years and carried forward to this year. Complete Form 8582-
Qualified Low-Income Housing Project                                             CR, Passive Activity Credit Limitations, to determine the allowed credit 
The credit cannot exceed the amount allocated to the building. See               that must be allocated between the estate or trust and the beneficiaries. 
section 42(h)(1) for details.                                                    For details, see the Instructions for Form 8582-CR.
The low-income housing credit can only be claimed for residential 
rental buildings in low-income housing projects that meet one of the             Paperwork Reduction Act Notice. We ask for the information on this 
minimum set-aside tests. For details, see the instructions for Form 8609,        form to carry out the Internal Revenue laws of the United States. You 
Part II, line 10c.                                                               are required to give us the information. We need it to ensure that you are 
Except for buildings financed with certain tax-exempt bonds, you may             complying with these laws and to allow us to figure and collect the right 
not take a low-income housing credit on a building if it has not received        amount of tax.
an allocation from the housing credit agency. No allocation is needed              You are not required to provide the information requested on a form 
when 50% or more of the aggregate basis of the building and the land             that is subject to the Paperwork Reduction Act unless the form displays 
on which the building is located is financed with certain tax-exempt             a valid OMB control number. Books or records relating to a form or its 
bonds. The owner must still get a Form 8609 from the appropriate                 instructions must be retained as long as their contents may become 
housing credit agency (with the applicable items completed, including            material in the administration of any Internal Revenue law. Generally, tax 
an assigned BIN). “Land on which the building is located” includes only          returns and return information are confidential, as required by section 
land that is functionally related and subordinate to the qualified low-          6103.
income building. (See Regulations sections 1.103-8(a)(3) and 1.103-8(b)            The time needed to complete and file this form will vary depending on 
(4)(iii).)                                                                       individual circumstances. The estimated burden for individual taxpayers 
Recapture of Credit                                                              filing this form is approved under OMB control number 1545-0074 and 
                                                                                 is included in the estimates shown in the instructions for their individual 
There is a 15-year compliance period during which the residential rental         income tax return. The estimated burden for all other taxpayers who file 
building must continue to meet certain requirements. If, as of the close         this form is shown below.
of any tax year in this period, there is a reduction in the qualified basis of   Recordkeeping      .   .  .  .   .  .   .    .  .    . .  .     4 hr., 4 min. 
the building from the previous year, you may have to recapture a part of 
the credit you have taken. Similarly, you may have to recapture part of          Learning about the law or the form      .    .  .    . .  .   .  . 52 min.
the credits taken in previous years upon certain dispositions of the             Preparing and sending the form to the IRS .          . .  .   2 hr., 10 min.
building or interests therein, unless you follow the procedures to prevent         If you have comments concerning the accuracy of these time 
recapture. See Recapture and building dispositions in the Instructions           estimates or suggestions for making this form simpler, we would be 
for Form 8609-A, Annual Statement for Low-Income Housing Credit, for             happy to hear from you. See the instructions for the tax return with 
details. If you must recapture credits, use Form 8611, Recapture of              which this form is filed.
Low-Income Housing Credit. See section 42(j) for details.
                                                                       Cat. No. 63987I                                               Form 8586 (Rev. 12-2023)