What is Form 4255: Recapture of Investment Credit?

When is a tax credit not a tax credit? When the IRS takes it back. If you're in the situation where you have to file IRS Form 4255, you might have to pay back a tax credit you've earned in prior years. This process, known as recapture, occurs if you claim a credit—in this case, a credit for a specific type of business investment—and then no longer qualify for that credit.

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Recapture of Investment Tax Credit

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Recapture of Investment Tax Credit

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About Form 4255, Recapture of Investment Credit

Information about Form 4255, Recapture of Investment Credit, including recent updates, related forms and instructions on how to file. Use this form to figure the increase in tax for the recapture of investment credit claimed and for the recapture of a qualifying therapeutic discovery project grant.

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Recapture of tax credits

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What is Form 3468: Investment Credit

Governments often use tax laws to encourage, or discourage, certain activities. Want people to do more of something? Offer a tax break for it. The federal tax code includes a variety of tax credits designed to promote different types of investment. Taxpayers claim many of these credits using IRS Form 3468.

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