Idaho Recapture of Idaho Small Employer Real Property Improvement Tax Credit

Recapture of Idaho Small Employer Real Property Improvement Tax Credit
Form 84R, Recapture of Idaho Small Employer Real Property Improvement Tax Credit and Instructions 2023
Form 84R
Recapture of Idaho Small Employer
Real Property Improvement Tax Credit
Names as shown on return

Social Security number or EIN

Identify Property That No Longer Qualifies as Idaho Small Employer
Real Property Improvement Tax Credit Property
Properties
Property Description

Part I —

A
B
C
D
E
Part II — Original Idaho Small Employer Real Property Improvement Tax Credit
A

Properties
C

B

D

E

1.Date property placed in
service ........................................ 1
2.Cost or other basis ..................... 2
3.Credit percentage ....................... 3

2.5%

2.5%

2.5%

2.5%

4. Original credit. Multiply line 2
by line 3 ...................................... 4
5.Date property ceased
to qualify ..................................... 5
6.Number of full years between
the date on line 1 and the
date on line 5 .............................. 6
Part III — Computation of Recapture Tax
7.Recapture percentage from
table in instructions .................... 7
8.Tentative recapture tax.
Multiply line 4 by line 7 ..............

8

9.Add line 8, columns A through E ........................................................................................................ 9
10.Pass-through share of credit recapture from S corporations, partnerships, trusts, or estates .......... 10
11.Add lines 9 and 10 ............................................................................................................................. 11
12.Credit recapture distributed to shareholders, partners, or beneficiaries ............................................ 12
13.Enter the portion of original credit not used to offset any tax. Don’t enter more than line 11.
The amount on this line reduces the carryover available to the current year .................................... 13
14.Add lines 12 and 13 .......................................................................................................................... 14
15.Recapture of small employer real property improvement tax credit. Subtract line 14 from line 11.
Enter here and on Form 44, Part II, line 4. Don’t use this amount to reduce the current year’s
small employer real property improvement tax credit computed on Form 84 ................................... 15
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2.5%

Form 84R — Instructions
Recapture of Idaho Small Employer
Real Property Improvement Tax Credit
General Instructions
Use Form 84R to compute the increase in tax and
reduction to credit carryover for the recapture of the
small employer real property improvement tax credit
(SE-RPITC).
If you claimed the SE-RPITC in an earlier year and
don’t meet the tax incentive criteria you certified to
on Idaho Form 89SE, you must recapture all the
SE-RPITC claimed in the earlier years.
Recompute the credit if you earned it in an earlier
year but disposed of the property before the end
of the five-year recapture period. Also, recompute
the credit on any property that no longer qualifies
as SE-RPITC property. Property moved from Idaho
within the first five years no longer qualifies as
SE-RPITC property and is subject to recapture.
Recapture may be necessary when:
•	 An S corporation shareholder’s interest
is reduced by a sale, 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.
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 XII, Supplemental Information, details on the
years the credit being recaptured was originally
earned.
Any resulting tax from recapture of credits claimed
in prior years must be added to the tax otherwise
determined in the year of recapture. Recapture
of credits not claimed in prior years reduces the
amount of credit carryover available to the current
year.

Specific Instructions
Instructions are for lines not fully explained on the form.
Part I — Identify Property That No Longer
Qualifies as Idaho Small Employer Real
Property Improvement Tax Credit Property
Describe the property for which you must recompute
the SE-RPITC. Fill in lines 1 through 8 in Parts II
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and III for each property on which you’re recomputing
the credit. Use a separate column for each item. Use
an additional Form 84R or other schedule with the
same information as required on Form 84R if you
have SE-RPITC recapture on more than five items.
Part II — Original Idaho Small Employer Real
Property Improvement Tax Credit
S corporations, partnerships, trusts, and estates that
have credit subject to recapture must complete lines 1
through 9 to determine the amount of credit recapture.
Shareholders, partners, and beneficiaries will use the
information provided by the S corporation, partnership,
trust, or estate to report their pass-through share of the
credit to be recaptured on line 10. If the only recapture
you’re reporting is from a pass-through entity, skip
lines 1 through 9 and begin on line 10.
Line 1. Enter the month, day, and year that the
property was first available for service.
Line 2. Enter the cost or other basis of the property
used to compute the original SE-RPITC.
Line 4. Multiply line 2 by line 3 to compute the credit
originally earned for each property listed.
Line 5. Enter the month, day, and year the property
ceased to qualify as SE-RPITC property.
Line 6. Don’t enter partial years. If the property was
held less than 12 months, enter zero. If you didn’t
meet the tax incentive criteria, enter zero.
Part III — Computation of Recapture Tax
Line 7. Enter the appropriate recapture percentage
from the following table.
If the number of full years
on Form 84R, line 6 is ...

Then the recapture
percentage is...

0
1
2
3
4
5 or more

100
80
60
40
20
0

Line 9. Add all amounts on line 8. If you’ve used
more than one Form 84R or separate sheets to list
additional items you computed an increase in tax on,
write to the left of the entry space “Tax from attached”
and the total tax from the separate sheets. Include the
amount in the total for line 9.
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Form 84R — Instructions

Line 10. Enter the amount of recapture of SE-RPITC
that’s being passed to you from S corporations,
partnerships, trusts, and estates. This amount is
reported on Form ID K-1, Part VII, line 48 or Form ID
K-1, Part XI, line 73 (Composite/ABE).
Include on line 10 any recapture that’s necessary
because of:
•	 A reduction of a shareholder’s proportionate
stock interest in an S corporation
•	 A reduction in the interest in the general profits
of a partnership, or
•	 A reduction in the proportionate interest in the
income of a trust or estate
Line 11. Add lines 9 and 10 to determine the
amount of credit subject to recapture.
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 recapture on this
line for shareholders, partners, or beneficiaries
you’re paying the tax for.

(continued)

Line 13. If you didn’t use all of the credit you originally
computed either in the year earned or in a carryover
year, you won’t have to pay tax from recapture of the
amount of the credit you didn’t use.
Compute the unused portion of the original credit
from Form 84R, line 4 or that was passed through to
you from an S corporation, 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
11.
Line 15. This is the total increase in tax. Enter it on
this line and on Form 44, Part II, line 4. Don’t use this
amount to reduce your current year’s SE-RPITC from
Form 84.
If you’re an S corporation or partnership and you’ve
elected to be an ABE, this amount also needs to be
distributed to the shareholders or partners on their
Form ID K-1.

Contact us:

In the Boise area: (208) 334-7660 | Toll free: (800) 972-7660
Hearing impaired (TDD) (800) 377-3529
tax.idaho.gov/contact
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