Part IV—Special Allowance for Low-Income Housing Credits for Property Placed in Service…

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

Use Part IV to figure the credit allowed if you have any low-income housing credits for property placed in service after 1989. If you held an indirect interest in the property through a partnership, S corporation, or other pass-through entity, use Part IV only if your interest in the pass-through entity was also acquired after 1989.

Line 35. Figure the tax attributable to the remaining special allowance as follows.

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

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

C. Enter $25,000 ($12,500 if married

filing a separate return and you and your spouse lived apart at all times during the year) . . . . .

D. Enter amount, if any, from Form

8582, line 9 . . . . . . . . . . .

E. Subtract line D from line C . . . . . . . . . .

F. Subtract line E from line A . . . . . . . . . .

G. Tax on line F* . . . . . . . . . . . . . . . . . . . . . . . . .

H. Subtract line G from line B . . . . . . . . . . . . . . . . .

I. Add lines 16 and 30 of Form 8582-CR and enter the

total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

J. Tax attributable to the remaining special allowance.

Subtract line I from line H. Enter the result on Form 8582-CR, line 35 . . . . . . . . . . . . . . . . . . . . . . .

• 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.

10 Instructions for Form 8582-CR (Rev. 12-2025)

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.