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Instrucciones del formulario 8866

Instrucciones para el formulario 8866, Computación de Interes bajo el método Look-Back para la propiedad depreciada bajo el método de previsión de ingresos

Rev. noviembre 2018

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  • Formulario 8866 - Computación de intereses bajo el método Look-Back para la propiedad depreciada bajo el método de previsión de ingresos
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Department of the Treasury  
Internal Revenue Service  
Instructions for Form 8866  
(Rev. November 2018)  
Interest Computation Under the Look-Back Method for Property Depreciated Under  
the Income Forecast Method  
Section references are to the Internal Revenue  
Code unless otherwise noted.  
in which the property was placed in  
service.  
property was depreciated under the  
income forecast method and the entity  
is not subject to the look-back method at  
the entity level for that property, you  
must file this form for your tax year that  
ends with or includes the end of the  
entity's recomputation year. The  
pass-through entity will provide on  
Schedule K-1 the information you need  
to complete this form.  
Exception. A tax year is not a  
recomputation year for the property if,  
for each year before the recomputation  
year, the actual income from the  
property is within 10% of the estimated  
income taken into account in  
General Instructions  
Future Developments  
For the latest information about  
developments related to Form 8866 and  
its instructions, such as legislation  
enacted after they were published, go to  
determining the depreciation deduction  
for the property under the income  
forecast method.  
Change of Taxpayer  
What's New  
If the taxpayer deducting depreciation  
under the income forecast method  
changes prior to the recomputation  
year, the taxpayer as of the end of the  
recomputation year will be responsible  
for the payment of interest, if any, due  
for any year in which the property was  
depreciated under the income forecast  
method. Generally, only the taxpayer  
that had depreciated property under the  
income forecast method in a year that  
an overpayment occurred may request  
a refund of interest on the overpayment.  
Additional Costs  
The tax rate used for the interest  
computation for individuals,  
Any costs incurred after the property  
was placed in service (that is not treated  
as separate property—see below) are  
taken into account by discounting (using  
the federal mid-term rate determined  
under section 1274(d) as of the time the  
cost was incurred) the cost to its value  
as of the date the property was placed  
in service. However, you may elect not  
to apply this discounting rule to any  
property.  
corporations, and certain pass-through  
entities has changed. See the  
instructions for line 6, later.  
Purpose of Form  
Use Form 8866 to figure the interest due  
or to be refunded under the look-back  
method of section 167(g)(2) for property  
placed in service after September 13,  
1995, that is depreciated under the  
income forecast method as described in  
section 167(g).  
Separate property. The following  
costs are treated as separate property.  
Filing Instructions  
Interest You Owe (or No  
Interest Is To Be Refunded to  
You)  
If you owe interest, or no interest is to be  
refunded to you, attach Form 8866 to  
your income tax return. You do not have  
to sign Form 8866 and the paid preparer  
section does not have to be completed.  
Any costs incurred related to any  
The income forecast method  
property after the 10th tax year after the  
tax year the property was placed in  
service.  
generally is limited to depreciation of:  
Motion picture films,  
Video tapes,  
Sound recordings,  
Copyrights,  
Any other costs incurred if they are  
significant and give rise to a significant  
increase in the income from the property  
which was not included in the estimated  
income from the property.  
Books, and  
Patents.  
Who Must File  
Pass-Through Entities  
For taxpayers other than  
partnerships, include any interest due in  
the amount to be entered for total tax  
(after credits and other taxes) on your  
return (for example, 2018 Form 1040,  
line 15; or 2018 Form 1120, Schedule J,  
line 9d, etc.). Next to the entry space,  
write “From Form 8866” and the amount  
of interest due.  
General Rule  
A pass-through entity (partnership, S  
corporation, or trust) that is not closely  
held must apply the look-back method  
at the entity level to any property for  
which substantially all of the gross  
income is from U.S. sources. A  
You generally must file Form 8866 to  
figure interest under the look-back  
method for each recomputation year for  
property placed in service after  
September 13, 1995, that you  
depreciate under the income forecast  
method.  
Exception. The look-back method  
does not apply for any property that had  
an unadjusted basis (total capitalized  
cost) of $100,000 or less at the end of  
the recomputation year.  
pass-through entity is considered  
closely held if, at any time during any  
tax year for which there is income  
related to the property, 50% or more (by  
value) of the beneficial interests in the  
entity is held (directly or indirectly) by or  
for five or fewer persons. For this  
purpose, rules similar to the constructive  
ownership rules of section 1563(e)  
apply.  
For partnerships, write “From Form  
8866” and any interest due in the  
bottom margin of the tax return, and  
attach a check or money order for the  
full amount payable to “United States  
Treasury.” Write the partnership's  
employer identification number (EIN),  
daytime phone number, and “Form  
8866 Interest” on the check or money  
order.  
Recomputation Year  
A recomputation year is generally the  
If you are an owner of an interest in a  
pass-through entity in which any  
3rd and 10th tax years after the tax year  
Sep 24, 2018  
Cat. No. 26332N  
Form 8866 shows interest to be  
refunded to you, you must:  
1. File an amended tax return  
showing $0 interest from Form 8866  
and  
Interest To Be Refunded to You  
Foreign Address  
If interest is to be refunded to you, do  
not attach Form 8866 to your income tax  
return. Instead, file Form 8866  
Enter the information in the following  
order: city, province or state, and  
country. Follow the country's practice for  
entering the postal code. Please do not  
abbreviate the country name.  
separately with the IRS at the applicable  
address listed below.  
2. File the corrected Form 8866  
separately (but do not write “Amended”  
at the top of the form because this is the  
first Form 8866 that you will file  
Individuals:  
Identifying Number  
Department of Treasury  
Internal Revenue Service  
Philadelphia, PA 19255-0001  
All others:  
If you are an individual, enter your social  
security number. Other filers must use  
their EIN.  
separately for this recomputation year).  
Follow the filing instructions, earlier, and  
the amended return instructions for your  
tax return.  
Recomputation year column  
Enter the month and year for the  
recomputation year listed at the top of  
this form.  
Department of Treasury  
Internal Revenue Service  
Cincinnati, OH 45999-0001  
If the original Form 8866 shows  
interest to be refunded to you and the  
corrected Form 8866 shows interest you  
owe, you must:  
Complete the Signature section on  
Form 8866 following the instructions for  
the Signature section of your income tax  
return. If you file a joint return, the  
signature of both spouses is required on  
Form 8866. A paid preparer also must  
complete the Signature section. If  
additional Forms 8866 are needed (to  
show more than 2 prior tax years), sign  
only the first Form 8866.  
Columns (a) and (b)  
1. File the corrected Form 8866  
separately (with “Amended” written at  
the top) showing $0 interest to be  
refunded and  
Enter at the top of each column the  
ending month and year for:  
Each tax year prior to the  
recomputation year in which you  
depreciated property under the income  
forecast method to which this form  
applies and  
2. File an amended income tax  
return and attach a copy of the  
corrected Form 8866. Follow the filing  
instructions, earlier, and the amended  
return instructions for your tax return.  
Any other tax year affected by such  
years.  
File Form 8866 by the date you are  
required to file your income tax return  
(including extensions). Keep a copy of  
Form 8866 and any attached schedules  
for your records.  
Attachments  
Note. If there are more than 2 prior tax  
years, attach additional Forms 8866 as  
needed. On the additional Forms 8866,  
enter your name, identifying number,  
and tax year. Complete lines 1 through  
8 (as applicable), but do not enter totals  
in column (c). Enter totals only in  
If you need more space, attach separate  
sheets to the back of Form 8866. Put  
your name and identifying number on  
each sheet.  
Filing a Corrected Form  
8866  
Specific Instructions  
You must file a corrected Form 8866  
only if the amount shown on line 6 for  
any prior year changes as a result of an  
error you made, an income tax  
examination, or the filing of an amended  
tax return.  
column (c) of the first Form 8866.  
Recomputation Year  
Line 1  
Fill in the recomputation year line at the  
top of the form to show the tax year for  
which this form is being filed. If you were  
an owner of an interest in a  
Do not reduce taxable income or  
increase a loss on line 1 by any  
carryback of a net operating loss, net  
section 1256 contracts loss, or capital  
loss, except to the extent that carryback  
resulted from or was adjusted by the  
redetermination of depreciation under  
the income forecast method for  
look-back purposes.  
When completing line 1 of the  
corrected Form 8866, follow the  
instructions on the form but do not enter  
the adjusted taxable income from line 3  
of the original Form 8866. When  
completing line 5 of the corrected Form  
8866, do not include the interest due, if  
any, from line 10 of the original Form  
8866 that was included in your total tax  
when Form 8866 was filed with your tax  
return.  
pass-through entity that has depreciated  
one or more properties under the  
income forecast method, enter your tax  
year that ends with or includes the end  
of the entity's recomputation year.  
Name  
Note. The 2-year carryback rule does  
not apply to net operating losses arising  
in the tax years ending after 2017. An  
exception applies to farmers and  
non-life insurance companies. See  
section 172(b) as amended by P.L.  
115-97, section 13302.  
Enter the name shown on your federal  
income tax return for the recomputation  
year. If you are an individual filing a joint  
return, also enter your spouse's name  
as shown on Form 1040.  
If both the original and corrected  
Forms 8866 show interest you owe, file  
an amended income tax return following  
the filing instructions, earlier, and the  
amended return instructions for your tax  
return.  
Address  
Enter your address only if you are filing  
this form separately. Include the  
apartment, suite, room, or other unit  
number after the street address.  
Line 2  
In each column, show a net increase to  
taxable income as a positive amount  
and a net decrease as a negative  
amount.  
If both the original and corrected  
Forms 8866 show interest to be  
refunded to you, write “Amended” in the  
top margin of the corrected Form 8866,  
and file it separately following the filing  
instructions, earlier.  
P.O. Box  
Enter your box number instead of your  
street address only if your post office  
does not deliver mail to your home.  
In figuring the net adjustment to be  
entered in each column on line 2, be  
sure to take into account any other  
income and expense adjustments that  
If your original Form 8866 shows  
interest you owe and the corrected  
-2-  
may result from the increase (or  
decrease) to depreciation under the  
income forecast method (for example,  
for an individual, a change to adjusted  
gross income may affect medical  
expenses).  
appropriate tax year and the  
a. In 2017 or earlier . . . . .  
b. In 2018 or later . . . . . .  
35%  
21%  
hypothetical tax would be recomputed  
in the carryback/forward year. However,  
the computation period for computing  
interest on NOLs is different. See the  
exceptions listed on lines 7 and 8  
below.  
Lines 7 and 8  
For the increase or decrease in tax for  
each prior year, interest due or to be  
refunded must be computed at the  
applicable interest rate and  
If there are no adjustments besides  
the look-back adjustments, the sum of  
all line 2 amounts should be zero and  
reflected in column 2(c). If there are  
additional adjustments that result from  
the application of the look-back, leave  
column 2(c) blank and reflect the  
amounts in the schedule below as  
described in item 3.  
Note. The 2-year carryback rule does  
not apply to net operating losses arising  
in tax years ending after 2017. An  
exception applies to farmers and  
non-life insurance companies. See  
section 172(b) as amended by P.L.  
115-97, section 13302.  
compounded on a daily basis, generally  
from the due date (not including  
extensions) of the return for the prior  
year until the earlier of:  
The due date (not including  
extensions) of the return for the  
recomputation year, or  
Lines 4 and 5  
Include the following on an attached  
schedule.  
Reduce the tax liability to be entered on  
lines 4 and 5 by allowable credits (other  
than refundable credits, for example,  
the credit for taxes withheld on wages,  
the earned income credit, the additional  
child tax credit, the credit for federal tax  
paid on fuels, etc.), but do not take into  
account any credit carrybacks to the  
prior year in computing the amount to  
enter on lines 4 and 5 (except to the  
extent of carrybacks that resulted from  
or were adjusted by the redetermination  
of depreciation for look-back purposes).  
Include on lines 4 and 5 any taxes (such  
as alternative minimum tax) required to  
be taken into account in the  
The date the return for the  
recomputation year is filed and any  
income tax due for that year has been  
fully paid.  
1. Identify each property  
depreciated under the income forecast  
method to which this form applies.  
2. For each property, report in  
columns for each prior year: (a) the  
amount of depreciation previously  
deducted based on estimated future  
income and (b) the amount of  
Exceptions  
If a net operating loss, capital loss,  
net section 1256 contracts loss, or  
credit carryback is being increased or  
decreased as a result of the adjustment  
made to net income due to refiguring  
depreciation under the income forecast  
method, the interest due or to be  
depreciation allowable for each prior  
year based on actual income earned  
before the end of the recomputation  
year and estimated future income to be  
earned after the recomputation year.  
Total the columns for each prior year  
and show the net adjustment to  
depreciation.  
refunded must be computed on the  
increase or decrease in tax attributable  
to the change to the carryback only from  
the due date (not including extensions)  
of the return for the prior year that  
generated the carryback and not from  
the due date of the return for the year in  
which the carryback was absorbed. See  
section 6611(f).  
computation of your tax liability (as  
originally reported or as redetermined).  
3. Identify any other adjustments  
that result from a change in depreciation  
under the income forecast method and  
show the amounts in the columns for the  
affected years so that the net  
Line 6  
Pass-through entities. Multiply the  
amount on line 2 by the applicable  
regular tax rate for each prior year  
shown in column (a) or (b). The  
In the case of a decrease in tax on  
adjustment shown in each column on  
the attached schedule agrees with the  
amounts shown on line 2.  
line 6, if a refund has been allowed for  
any part of the income tax liability shown  
on line 5 for any year as a result of a net  
operating loss, capital loss, net section  
1256 contracts loss, or credit carryback  
to such year, and the amount of the  
refund exceeds the amount on line 4,  
interest is allowed on the amount of  
such excess only until the due date (not  
including extensions) of the return for  
the year in which the carryback arose.  
applicable regular tax rate is as follows.  
1. Pass-through entities in which, at all  
times during the year, more than 50% of  
the interests in the entity are held by  
individuals directly or through other  
pass-through entities. The rates for tax  
years beginning:  
An owner of an interest in a  
pass-through entity is not required to  
provide the detail listed in 1 and 2 with  
respect to prior years. The entity should  
provide the line 2 amounts with  
Schedule K-1 or on a separate  
statement for its recomputation year.  
a. In 2000 or earlier . . . . .  
b. In 2001 . . . . . . . . . . . .  
c. In 2002 . . . . . . . . . . .  
d. In 2003 through  
2012 . . . . . . . . . . . . . . .  
e. In 2013 through  
2017 . . . . . . . . . . . . . . .  
f. In 2018 or later . . . . . . .  
39.6%  
39.1%  
38.6%  
Note. Taxpayers reporting line 2  
amounts from more than one  
Note. If a different method of interest  
computation must be used to produce  
the correct result in your case, use that  
method and attach an explanation of  
how the interest was computed.  
Schedule K-1 (or a similar statement)  
must attach a schedule detailing by  
entity the net change to depreciation  
under the income forecast method.  
35.0%  
39.6%  
37.0%  
Applicable Interest Rates  
Line 3  
The overpayment rate designated under  
Section 6621 is used to calculate the  
interest for both hypothetical  
If line 3 results in a negative amount, it  
represents a look-back net operating  
loss (NOL). The adjustment in line 2  
either created, increased, or decreased  
the net operating loss. The change in  
the amount of the net operating loss  
would be carried back or forward to the  
2. All other pass-through entities not  
included in 1 above:  
overpayments and underpayments. The  
applicable interest rates are published  
quarterly in revenue rulings in the  
-3-  
Internal Revenue Bulletin available at  
IRS.gov.  
Table 1  
Interest Rates for Non-corporate  
Taxpayers  
forecast method. Sections 6001 and  
6109 and their regulations require you  
to provide this information, including  
your identifying number, if this provision  
applies to you. If you do not file Form  
8866, do not provide the information we  
ask for, or provide fraudulent  
However, for depreciation deducted  
in tax years ending after August 5, 1997,  
an interest rate is determined for each  
interest accrual period. The interest  
accrual period starts on the day after the  
return due date (not including  
From  
1/1/08  
4/1/08  
7/1/08  
10/1/08  
1/1/09  
4/1/09  
1/1/11  
4/1/11  
10/1/11  
1/1/12  
1/1/13  
1/1/16  
4/1/16  
1/1/17  
4/1/18  
Through  
3/31/08  
6/30/08  
9/30/08  
12/31/08  
3/31/09  
12/31/10  
3/31/11  
9/30/11  
12/31/11  
12/31/12  
12/31/15  
3/31/16  
12/31/16  
3/31/18  
9/30/18  
Rate  
7%  
6%  
5%  
6%  
5%  
4%  
3%  
4%  
3%  
3%  
3%  
3%  
4%  
4%  
5%  
Table  
67  
65  
63  
65  
15  
13  
11  
13  
11  
59  
11  
59  
61  
13  
15  
Page  
621  
619  
617  
619  
569  
567  
565  
567  
565  
613  
565  
613  
615  
567  
569  
information, you may forfeit any refund  
of interest otherwise owed to you and  
be subject to other penalties.  
extensions) for each prior tax year and  
ends on the return due date for the  
following tax year. The interest rate in  
effect for the entire interest accrual  
period is the overpayment rate  
You are not required to provide the  
information requested on a form that is  
subject to the Paperwork Reduction Act  
unless the form displays a valid OMB  
control number. Books or records  
relating to a form or its instructions must  
be retained as long as their contents  
may become material in the  
determined under section 6621(a)(1)  
applicable on the first day of the interest  
accrual period.  
Even though the interest rates  
change quarterly, for look-back  
purposes the interest rate stays the  
same for the accrual period which is  
generally one year. The applicable  
interest rates for non-corporate  
taxpayers are shown in Table 1 (for  
interest accrual periods beginning after  
Jan. 1, 2008).  
Table 2  
administration of any Internal Revenue  
law. Generally, tax returns and return  
information are confidential, as required  
by section 6103. However, section 6103  
sometimes permits or requires us to  
disclose this information.  
Interest Rates for Corporate  
Increases or Decreases in Tax of  
$10,000 or Less  
From  
1/1/08  
4/1/08  
7/1/08  
Through Rate Table Page  
3/31/08  
6/30/08  
9/30/08  
6%  
5%  
4%  
5%  
4%  
3%  
2%  
3%  
2%  
2%  
2%  
2%  
3%  
3%  
4%  
65  
63  
61  
63  
13  
11  
9
619  
617  
615  
617  
567  
565  
563  
565  
563  
611  
563  
611  
613  
565  
567  
We may give the information to the  
Department of Justice and to other  
federal agencies, as provided by law.  
We may give it to cities, states, the  
District of Columbia, and U.S.  
10/1/08 12/31/08  
1/1/09 3/31/09  
The applicable interest rates for  
corporate taxpayers for the first $10,000  
are shown in Table 2. The applicable  
interest rates for corporate taxpayers for  
amounts in excess of $10,000 are  
shown in Table 3.  
4/1/09 12/31/10  
1/1/11  
4/1/11  
3/31/11  
9/30/11  
11  
9
commonwealths or possessions to carry  
out their tax laws. We may give it to  
foreign governments because of tax  
treaties they have with the United  
States. We also may disclose this  
information to federal and state  
10/1/11 12/31/11  
1/1/12 12/31/12  
1/1/13 12/31/15  
57  
9
1/1/16  
3/31/16  
57  
59  
11  
13  
Line 9  
4/1/16 12/31/16  
Additional interest to be refunded for  
periods after the due date of the return,  
if any, will be computed by the IRS and  
included in your refund. Report the  
amount on line 9 (or the amount  
refunded by the IRS if different) as  
interest income on your income tax  
return for the tax year in which it is  
received or accrued.  
1/1/17  
4/1/18  
3/31/18  
9/30/18  
agencies to enforce federal nontax  
criminal laws and to combat terrorism.  
Table 3  
The time needed to complete and file  
this form will vary depending on  
individual circumstances. The estimated  
burden for individual taxpayers filing this  
form is approved under OMB control  
number 1545-0074 and is included in  
the estimates shown in the instructions  
for their individual income tax return.  
The estimated burden for all other  
taxpayers who file this form is shown  
below.  
Interest Rates for Corporate  
Increases or Decreases in Tax  
Exceeding $10,000  
From  
1/1/08  
Through  
Rate  
Table Page  
3/31/08  
6/30/08  
9/30/08  
12/31/08  
3/31/09  
12/31/10  
3/31/11  
9/30/11  
3/31/16  
12/31/16  
3/31/18  
9/30/18  
4.5%  
3.5%  
2.5%  
3.5%  
2.5%  
1.5%  
0.5%  
1.5%  
0.5%  
1.5%  
1.5%  
2.5%  
62  
60  
58  
60  
10  
8
616  
614  
612  
614  
564  
562  
4/1/08  
7/1/08  
10/1/08  
1/1/09  
4/1/09  
1/1/11  
4/1/11  
10/1/11  
4/1/16  
1/1/17  
4/1/18  
Line 10  
Corporations (other than S  
corporations) may deduct this amount  
(or the amount computed by the IRS if  
different) as interest expense for the tax  
year in which it is paid or incurred. For  
individuals and other taxpayers, this  
interest is not deductible.  
8
56  
8
562  
Recordkeeping. . . . . . . 7 hr., 39 min.  
610  
562  
564  
Learning about the law  
or the form . . . . . . . . . 1 hr., 33 min.  
10  
Preparing, copying,  
assembling, and  
Privacy Act and Paperwork Reduc-  
tion Act Notice. We ask for the  
sending  
information on this form to carry out the  
Internal Revenue laws of the United  
States. We need it to ensure that you  
are complying with these laws and to  
figure and collect or refund the correct  
amount of interest. Section 167(g)  
provides special rules for computing  
interest under the look-back method for  
property depreciated under the income  
the form to the IRS . . . 2 hr., 56 min.  
If you have comments or suggestions  
for making this form simpler, we would  
be happy to hear from you. You can  
send us comments from IRS.gov/  
FormComments. Or you can send us  
-4-  
your comments to: Internal Revenue  
Service; Tax Forms and Publications  
Division: SE:W:CAR:MP:T;  
1111 Constitution Ave.; NW; IR-6526;  
Washington, DC 20224. Do not send  
the tax form to this office. Instead, see  
Filing Instructions, earlier.  
-5-