84R: Recapture of Idaho Small Employer Real Property Improvement Tax Credit and Instructions 2024 (2024)
Idaho · Idaho Tax Commission · Used for tax years 2024
Form 84R computes the increase in tax and reduction in credit carryover from recapturing the Idaho Small Employer Real Property Improvement Tax Credit. It reports property that no longer qualifies, the original credit, and any recapture amounts passed through to or from owners or
Who files this form
Use Form 84R to figure the tax increase and reduction in credit carryover when an Idaho small employer real property improvement tax credit must be recaptured.
You must recapture all credits claimed in earlier years if you no longer meet the tax incentive criteria you certified to on Idaho Form 89SE.
You must also recompute an earlier credit if you:
- Disposed of the property before the end of the five-year recapture period.
- Have property that no longer qualifies. Property moved out of Idaho within the first five years no longer qualifies.
Recapture may also be necessary when a shareholder’s interest in an S corporation, a partner’s interest in a partnership, or an interest in a trust or estate is reduced.
S corporations, partnerships, trusts, and estates with credit subject to recapture complete lines 1 through 9. Shareholders, partners, and beneficiaries report their pass-through share on line 10.
What you'll need
Have the following information ready:
- Names as shown on your return and your Social Security number or EIN.
- A description of each property that no longer qualifies.
- The month, day, and year each property was first available for service and ceased to qualify.
- The cost or other basis used to compute the original credit.
- Information about how much of the original credit you used in the year earned or in a carryover year.
If recapture is passed through to you, use Form ID K-1, Part VII, line 48, or Part XI, line 73 (Composite/ABE). Entities passing through recapture must also provide details in Part XII about the years the credit was originally earned.
Use a separate sheet to compute any unused portion of the original credit for line 13. If more than five properties are involved, use another Form 84R or a schedule with the same required information.
Common mistakes
- Counting partial years on line 6. Enter only full years. Enter zero if the property was held less than 12 months or you did not meet the tax incentive criteria.
- Completing unnecessary property lines. If your only recapture is from a pass-through entity, skip lines 1 through 9 and begin on line 10.
- Leaving additional schedules out of line 9. Include their total and write “Tax from attached” and the total tax from those sheets to the left of the entry space.
- Including the wrong amounts on line 12. Do not include recapture for shareholders, partners, or beneficiaries whose tax the entity is paying.
- Entering too much on line 13. The unused credit amount cannot exceed line 11 and reduces the carryover available to the current year.
- Using recapture to reduce the current year’s credit. Transfer line 15 to Form 44, Part II, line 4. Do not use it to reduce the current year’s credit computed on Form 84.
Questions people ask
What recapture percentage applies?
The percentage depends on the full years entered on line 6: zero years, 100%; one year, 80%; two years, 60%; three years, 40%; four years, 20%; and five or more years, 0%.
Do I owe recapture tax on credit I never used?
You do not have to pay recapture tax on the unused portion of the original credit. Compute that portion on a separate sheet and enter it on line 13, limited to the amount on line 11. It reduces the credit carryover available to the current year.
When is the recapture tax added to my tax?
Tax resulting from recapture of credits claimed in prior years is added to the tax otherwise determined in the year of recapture.
What if my S corporation or partnership elected to be an ABE?
The line 15 amount must also be distributed to shareholders or partners on their Forms ID K-1.