Get Form 4255 (rev. April 1997). Recapture Of Investment Credit

Filling out Form 4255, also known as the recapture of investment credit form, is essential for taxpayers who need to reassess their investment credit. This guide provides a clear, step-by-step approach to successfully complete this form online.

Follow the steps to complete Form 4255 accurately.

1. Press the ‘Get Form’ button to access the form and open it in your document editor.
2. Enter your name as it appears on your income tax return in the designated field. Be sure to include both your first and last name.
3. Provide your identifying number, which is typically your Social Security number or Employer Identification Number.
4. Specify the type of property for which you are recapturing the credit. Indicate whether it is rehabilitation, energy, reforestation, or transition property.
5. In the computation section, enter the original rate of credit from your records on line 1.
6. On line 2, input the cost or other basis you used to calculate the original credit.
7. Calculate the original credit amount by multiplying the value on line 2 by the rate from line 1, and enter this number on line 3.
8. Fill out the dates: enter the date the property was placed in service on line 4, and the date it ceased to be qualified on line 5.
9. Determine the number of full years between the dates entered in lines 4 and 5, and place this value on line 6.
10. Refer to the recapture percentage table and fill in the appropriate percentage for the value on line 6 into line 7.
11. Calculate the tentative recapture tax using line 3's value multiplied by the percentage from line 7, and place this result on line 8.
12. Aggregate the amounts entered in columns A through D on line 9.
13. If there was an increase in nonqualified nonrecourse financing, complete the calculations needed, and record them on line 10.
14. Calculate any unused portion of the original credit that can still be applied, and enter this on line 12.
15. To finalize, subtract the amount on line 12 from the value on line 11 and record this amount as your total increase in tax on line 13.
16. Review your entries to ensure accuracy, then save the changes, download, print, or share the completed form as necessary.

Complete your Form 4255 online today to ensure compliance and accuracy for your tax return.