8859 District of Columbia First-Time Homebuyer Credit

Form 8859
District of Columbia First-Time Homebuyer Credit
Purpose:

This is the first circulated draft of the 2007 version of Form 8859,
District of Columbia First-Time Homebuyer Credit. The major
changes are discussed below.

TPCC Meeting:

None scheduled, but may be arranged if requested.

Instructions:

The 2007 Instructions for Form 8859 are included.

Prior Revisions:

The 2006 version of Form 8859 can be viewed by clicking on the following
link:
http://www.irs.gov/pub/irs-pdf/f8859.pdf

Other Products:

Circulations of draft tax forms, instructions, notices, and publications are
posted at http://taxforms.web.irs.gov/draft_products.html.

Comments:

Please call, mail, email, or fax any comments by Monday, July 9, 2007.
Major Changes

1.

All year references have been changed.

2.

Line references on line 9 for both Form 1040 and 1040NR have been updated.
(PL 109-222, section 302; 2/6/07 WRN Form 1040; 1/29/07 WRN Form 1040NR)

3.

New line 11 added to account for alternative minimum tax (AMT).
(IRC 26(a)(1))

4.

New line 12 added to subtract AMT from total on line 10.
(IRC 26(a)(1))

5.

Instruction to "Check box c" on old line 11 (new line 13) has changed to: "Check box b"
(2/6/07 WRN Form 1040, 1/29/07 WRN Form 1040NR)

6.

Old line 12 is now new line 14

FROM:

EMAIL:

PHONE:

FAX:

ROOM:

Paul.W.Miller@irs.gov

202-293-2926

202-283-7008

C7-261

Paul. W. Miller
SE:W:CAR:MP:T:I:F

DATE:

1
TLS, have you
transmitted all R
text files for this
cycle update?

Date

Form

I.R.S. SPECIFICATIONS
TO BE REMOVED BEFORE PRINTING
INSTRUCTIONS TO PRINTERS
FORM 8859, PAGE 1 OF 2
MARGINS: TOP 13mm (1⁄ 2 "), CENTER SIDES.
PRINTS: HEAD TO HEAD
PAPER: WHITE, WRITING, SUB. 20
INK: BLACK
FLAT SIZE: 216mm (81⁄ 2 ") 3 279mm (11")
PERFORATE: NONE
DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT

8859

Action

Date

O.K. to print
Revised proofs
requested

OMB No. 1545-0074

District of Columbia First-Time
Homebuyer Credit

Department of the Treasury
Internal Revenue Service

2007

f
o
s
a
7
t
0
f
0
a
2
r
/
D /15
5
0
©

Name(s) shown on return

Signature

Attachment
Sequence No.

Attach to Form 1040 or Form 1040NR.

106

Your social security number

Note: Do not complete Parts I and II if you only have a credit carryforward from 2006.
Part I
A

General Information

Address of home qualifying for the credit (if different from the address shown on return)
Information from
settlement statement
or deed

Part II
1

©

B

Lot number

Tentative Credit

C

Square number

D

Settlement or closing date

Enter $5,000 ($2,500 if married filing separately). If the purchase price of the home was less than
$5,000, enter the purchase price (one-half of the purchase price if married filing separately). If
someone other than a spouse also held an interest in the home, enter only your share of the
$5,000 (or, if smaller, your share of the purchase price) (see instructions)

2

Enter your modified adjusted gross income (see instructions)

3

Is line 2 more than $70,000 ($110,000 if married filing jointly)?
No. Skip lines 3 through 5 and enter the amount from line 1 on line 6.
Yes. Subtract $70,000 ($110,000 if married filing jointly) from the
amount on line 2 and enter the result

1

2

3

Divide line 3 by $20,000 and enter the result as a decimal (rounded to at least three places).
Do not enter more than 1.000

4

5

Multiply line 1 by line 4

5

6

Subtract line 5 from line 1. This is your tentative credit

6

4

Part III
7

7

Tax Liability Limit

8

Enter the amount from Form 1040, line 44 or Form 1040NR, line 41

9

1040 filers:

8

Enter the total of any amounts from Form 1040, line 47 through 49; Form 5695,
line 17; and Form 8196, line 13.
1040NR filers: Enter the total of any amounts from Form 1040NR, line 44; Form 5695, line 17;
and Form 8196, line 13

9

10

Subtract line 9 from line 8. If zero or less, enter -0- here and on line 13 and go to line 14

10

11

Enter the amount from Form 6251, line 31

11

12

Subtract line 11 from line 10. If zero or less, enter -0- here and on line 13 and go to line 14

12

13

Current year credit. If you completed Part II, enter the smaller of line 6 or line 12. If you
completed Part III, enter the smaller of line 7 or line 12. Also include this amount on Form 1040,
line 54, or Form 1040NR, line 49. Check box b on that line

13

Credit carryforward to 2008. Subtract line 13 from line 6 or line 7, whichever applies

14

14

.

Credit Carryforward From 2006

Enter the amount from line 12 of your 2006 Form 8859

Part IV

×

For Paperwork Reduction Act Notice, see back of form.

Cat. No. 24779G

Form

8859

(2007)

1
I.R.S. SPECIFICATIONS
TO BE REMOVED BEFORE PRINTING
INSTRUCTIONS TO PRINTERS
Form 8859, PAGE 2 of 2
MARGINS: TOP 13mm (1⁄ 2 "), CENTER SIDES.
PRINTS: HEAD to HEAD
PAPER: WHITE, WRITING, SUB. 20
INK: BLACK
FLAT SIZE: 216mm (81⁄ 2 ") 3 279mm (11")
PERFORATE: (NONE)
DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT

Form 8859 (2007)

General Instructions

Page

f
o
s
a
7
t
0
f
0
a
2
r
/
D /15
5
0

Section references are to the Internal Revenue Code.

Purpose of Form

Use Form 8859 to claim the District of Columbia
first-time homebuyer credit.

Who Can Claim the Credit

2

In general, you can claim the credit if:
● You purchased a main home during 2007 in the
District of Columbia, and
● You (and your spouse if married) did not own any
other main home in the District of Columbia during the
1-year period ending on the date of purchase.
If you constructed your main home, you are treated as
having purchased it on the date you first occupied it.
Your main home is the one you live in most of the
time. It can be a house, houseboat, housetrailer,
cooperative apartment, condominium, or other type of
residence.
However, you cannot claim the credit if any of the
following apply.
● You acquired your home from certain related
persons or by gift or inheritance. Related persons
include, but are not limited to, your grandparents,
parents, spouse, children, and grandchildren. For
details, see section 1400C(e)(2).
● Your modified adjusted gross income (see the
instructions for line 2) is $90,000 or more ($130,000 or
more if married filing jointly).
● You previously claimed this credit for a different
home.

Amount of the Credit
Generally, the credit is the smaller of:
● $5,000 ($2,500 if married filing separately), or
● The purchase price of the home.
The credit is phased out over a range that:
● Begins when your modified adjusted gross income
exceeds $70,000 ($110,000 if married filing jointly), and
● Ends at $90,000 ($130,000 if married filing jointly).

Basis Reduction
You must reduce your basis in the home purchased by
the amount of the tentative credit shown on line 6.

Specific Instructions
Line 1

If two or more unmarried individuals buy a main home,
they can allocate the credit among the individual
owners in any manner they choose. The total amount
allocated cannot exceed $5,000 (or the purchase price
if it was less than $5,000).

Line 2

If you file Form 1040, your modified adjusted gross
income is the amount from Form 1040, line 38,
increased by the total of any:
● Exclusion of income from Puerto Rico, and
● Amount from Form 2555, lines 45 and 50; Form
2555-EZ, line 18; and Form 4563, line 15.
If you file Form 1040NR, your modified adjusted gross
income is the amount from Form 1040NR, line 36.

Line 14

Any unused credit shown on line 14 can be carried
forward until it has been used. You cannot carry the
unused credit back to prior years.
Paperwork Reduction Act Notice. We ask for the
information on this form to carry out the Internal
Revenue laws of the United States. You are required to
give us the information. We need it to ensure that you
are complying with these laws and to allow us to figure
and collect the right amount of tax.
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 administration of
any Internal Revenue law. Generally, tax returns and
return information are confidential, as required by
section 6103.
The average time and expenses required to complete
and file this form will vary depending on individual
circumstances. For the estimated averages, see the
instructions for your income tax return.
If you have suggestions for making this form simpler,
we would be happy to hear from you. See the
instructions for your income tax return.