Idaho Recapture of Idaho Broadband Equipment Credit Form 68R
Form 68R is used by taxpayers in Idaho to calculate the recapture of the Broadband Equipment Investment Credit. This form is required when property that qualified for the credit is disposed of, moved out of Idaho, or otherwise ceases to qualify as broadband equipment investment credit property within the five-year recapture period.
When to Use Form 68R
- When broadband equipment investment credit property is disposed of before the end of the five-year recapture period.
- When property is moved from Idaho within the first five years, causing it to cease qualifying as investment tax credit (ITC) property.
- When an entity passes the credit through to its owners (e.g., S corporations, partnerships, trusts, or estates), and recapture applies.
Key Sections of Form 68R
- Part I – Identify Property That Ceased to Qualify: Describe each property that no longer qualifies for the credit. Include details such as property description, date placed in service, and basis.
- Part II – Original Idaho Broadband Equipment Investment Credit: Calculate the original credit amount for each property. Required for S corporations, partnerships, trusts, and estates.
- Part III – Recapture Calculation: Compute the increase in tax and reduction in credit carryover due to recapture. The recapture amount must be reported on Form ID K-1 for pass-through entities.
Reporting Requirements
- Entities must provide a Form ID K-1 to owners, showing the recapture amount in Part XII, Supplemental Information.
- Include details on the years the original credit was earned.
- If more than five items are involved, use additional Form 68R or a schedule with the same required information.
Important Notes
- The recapture must be computed if the credit was earned in an earlier year and the property is disposed of or moved before the five-year period ends.
- Form 68R must be filed with each income tax return where the credit is claimed or carried over.
- Transferees must include a copy of Form 70 with each return where the credit is claimed or carried over.
Source:
Form 68R-Instructions (Recapture of Idaho Broadband Equipment Investment Credit)
Disclaimer: Always verify details with official forms and instructions from the Idaho State Tax Commission or Federal/State Department of Revenue. OLT (Online Taxes) provides guidance based on retrieved information but does not guarantee accuracy for all individual circumstances.