Part III—Special Allowance for Rehabilitation Credits From Rental Real Estate…

Caution: Married persons filing separate returns who lived with their spouses at any time during the year aren’t eligible to complete Part III.

Use Part III to figure the credit allowed if you have any rehabilitation credits or low-income housing credits for property placed in service before 1990. Also use this part if your low-income housing credit is from a partnership, S corporation, or other pass-through entity in which you acquired your interest before 1990, regardless of the date the property was placed in service.

Line 21. Married persons filing separate returns who lived apart from their spouses at all times during the year must enter $125,000 on line 21, instead of $250,000.

Skip lines 21 through 26 if you completed Part II of this form and your modified adjusted gross income on line 10 was $100,000 or less ($50,000 or less if married filing separately and you lived apart from your spouse for the entire year). Instead, enter the amount from line 15 on line 27.

Line 24. Don’t enter more than $12,500 on line 24 if you are married filing a separate return and lived apart from your spouse for the entire year.

Line 27. Figure the tax attributable to the amount on line 26 as follows.

A. Taxable income . . . . . . . . . . . . .

B. Tax on line A* . . . . . . . . . . . . . . . . . . . . . .

C. Enter amount from Form 8582-CR,

line 26 . . . . . . . . . . . . . . . . . . .

D. Subtract line C from line A . . . . . . .

E. Tax on line D* . . . . . . . . . . . . . . . . . . . . . .

F. Subtract line E from line B and enter the result on Form

8582-CR, line 27 . . . . . . . . . . . . . . . . . . . .

• For Form 1040 or 1040-SR, use the Tax Table, Tax Computation Worksheet, or other appropriate method you used to figure your tax. For Form 1041, use the Tax Rate Schedule, Qualified Dividends Tax Worksheet, or Schedule D, whichever applies.

Note: When using taxable income in the above computation, it isn’t necessary to refigure items that are based on a percentage of adjusted gross income.