What is the Utah Recapture of Low-Income Housing Credit?

If you claimed the Utah low-income housing credit in a previous year and then disposed of the building or an ownership interest you may have to recapture the credit. This can also be necessary if the qualified basis of the building has decreased.

To calculate the necessary amount of recapture, complete the following steps:

1. Find the amount of federal net recapture tax on federal Form 8611, line 10
2. Find the amount of credits subject to recapture on federal Form 8611, line 3
3. Divide line 1 by line 2
4. Total all the low-income housing credits actually taken over the life of the project on all Utah returns
5. Multiply line 3 by line 4

Enter the result of line 5 on the Housing Recapture page of your Utah return.