Form 8329 – Fill Out and Use This PDF

Form 8329

(Rev. April 1993)

Department of the Treasury Internal Revenue Service

Lender’s Information Return for M ortgage Credit Certificates (M CCs)

For calendar year ending 19

OMB No. 1545-0922

Expires 5-31-96

Lender’s name

Employer identification number

Lender’s address (number, street, or P.O. box no., if mail is not delivered to street address)

Room/suite

Issuer’s name

Employer identification number

Issuer’s address (number, street, or P.O. box no., if mail is not delivered to street address)

Room/suite

Election date

City, state, and ZIP code

Nonissued bond amount

(a)

Name(s)

(b)

Address

Do not use a P.O. box number.

(c)

Social Security Number(s)

(a)

Date of Issue of MCC

(b)

Certified Indebtedness Amount

of Each MCC Issued

(c)

Certificate Credit Rate

(d)

Amount of MCC Issued

(Column (b) column (c))

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.

The time needed to complete and file this form will vary depending on individual circumstances. The estimated average time is:

Recordkeeping	3 hr., 35 min.
Learning about the
law or the form	53 min.
Preparing and sending
the form to the IRS	59 min.

If you have comments concerning the accuracy of these time estimates or suggestions for making this form more simple, we would be happy to hear from you. You can write to both the Internal Revenue Service, Attention: Reports Clearance Officer, T:FP, Washington, DC 20224; and the Office of Management and Budget, Paperwork Reduction Project (1545-0922), Washington, DC 20503. DO NOT send the form to either of these offices. Instead, see Where To File below.

General Instructions

Section references are to the Internal Revenue Code unless otherwise noted.

Any person who makes a loan that is a “certified indebtedness amount” on any mortgage credit certificate (MCC) must maintain books and records of such activity and file Form 8329. (See Regulations section 1.25-8T(a).)

A separate Form 8329 must be filed for each issue of MCCs for which the lender made mortgage loans during the calendar year. Each issue of MCCs corresponds to the MCC program relating to the nonissued bond amount that was the subject of the election made on the election date. Both the nonissued bond amount and the election date are to be provided in Part II of this Form 8329.

Caution: After June 30, 1992, issuers (states and political subdivisions) cannot elect to convert their right to issue qualified mortgage bonds for the right to issue qualified mortgage credit certificates. However, lenders must still file a Form 8329 to report on mortgage credit certificates issued under a pre-July 1992 election.

Purpose of Form

Form 8329 is used by lenders of certified indebtedness amounts to provide the IRS with information regarding the issuance of MCCs under section 25.

The MCC must be issued under a program that meets the residence requirements of section 143(c). Under these requirements, the residence must: (1) be a single-family residence that can reasonably be expected to become the principal residence of the mortgagor within a reasonable time after the financing is provided, and (2) be located in the jurisdiction of the authority issuing the certificate. See section 25(c)(2) for additional requirements.

Who Must File

Any person who makes a loan that is a certified indebtedness amount on any MCC must file Form 8329.

When To File

File Form 8329 by January 31 following the close of the calendar year in which the lender made certified indebtedness loans.

The IRS may grant an extension of time to file Form 8329 if there is reasonable cause for not filing on time.

Where To File

File Form 8329 with the Internal Revenue Service Center, Philadelphia, PA 19255.

Penalty

Any person required to file Form 8329 may be subject to a $200 penalty for each form that is not filed by the due date.

Definitions

A mortgage credit certificate is a certificate issued under a “qualified mortgage credit certificate program” by the state or political subdivision having the authority to issue qualified mortgage bonds to provide financing for the acquisition, qualified rehabilitation, or qualified home improvement of a taxpayer’s principal residence. For more information, see section 25(c)(1).

A qualified mortgage credit certificate program is a program established for any calendar year by a state or political subdivision that is authorized to issue qualified mortgage bonds under section 143 (and for which there has been an appropriate allocation of state volume cap for that calendar year under section 146) but elected instead to issue mortgage credit certificates. (See section 25(c)(2) for additional requirements.) The aggregate amount of all mortgage credit certificates issued under any single MCC program may not exceed 25% of the nonissued bond amount for which the election was made. See section 25(d)(2).

The certified indebtedness amount is the amount of indebtedness specified in the MCC and incurred by a taxpayer:

a. To acquire his or her principal residence,

b. To make qualified home improvements on that residence, or

c. To make a qualified rehabilitation of that residence.

The certificate credit rate is the rate specified by the issuer on the MCC. However, the rate cannot be less than 10% nor more than 50% . For other limitations, see Regulations section 1.25-2T(b).

Specific Instructions

Part I.—Reporting Authority

Provide information about the mortgage lender.

Part II.—Issuing Authority

Provide information about the mortgage credit certificate issuer.

Election date.—Enter the date the issuing authority elected to issue MCCs in lieu of qualified mortgage bonds for the MCC program that included the amounts listed in Part IV, column (b).

Nonissued bond amount.—Enter the total amount of qualified mortgage bonds (as defined in section 143(a)(1) and the related regulations) that the issuer has authority to issue but elected instead on the election date to convert into authority to issue MCCs.

Part III.—Recipients of Mortgage Credit Certificates

Column (a).—Enter the name(s) of the MCC holder(s) to whom the lender made certified indebtedness loan(s) during the calendar year. If an MCC lists more than one holder, enter all of the holders on one line.

Column (b).—Enter the number and street, city, state, and ZIP code of the property for which the MCC was issued. Do not use a P.O. box number.

Column (c).—Enter the social security number(s) of the holder(s) listed on the MCC.

Part IV.—Computation of the Total

Amount of Mortgage Credit

Certificates

Column (a).—Enter the date the issuing authority issued the certificate for the amount included in column (b). Do not give the date the loan was made nor the date when any preliminary approval to issue an MCC was given by the issuer.

Column (c).—Enter the certificate credit rate for each MCC.

Column (d).—For each certificate amount listed in column (b), multiply by the certificate credit rate associated with that certificate shown in column (c).

Line 6.—This is the aggregate amount of MCCs issued (Part IV, column (d)) in connection with the lender’s loans relating to the issuer’s MCC program for the calendar year. The total should reflect all of the MCCs described on the lender’s Form 8329, including any attachments, for the MCC program for the calendar year. See Note below.

Note for Parts III and IV: The information on each line in Part IV must match the information entered on each corresponding line in Part III. For example, the MCC listed on line 1 of Part IV should be the MCC that was issued to the individual(s) listed on line 1 of Part III.

If the lender must report on more than 5 mortgage credit certificates, it should report these additional certificates on an attachment formatted like Form 8329.

Instead of formatting its own attachment, the lender may use one Form 8329 as a transmittal document and use additional Forms 8329 as attachments. In such a case, draw an “X” across the 5 lines of Parts III and IV of the Form 8329 used as a transmitting document. Complete the remaining lines of this Form 8329, making certain that all mortgage credit certificate amounts reported in all the attachments in Part IV, column (d) are totaled for line 6 of the transmittal document. Sign only the transmittal Form 8329 and indicate in the top margin the number of Forms 8329 attached to this Form 8329.

On the attached Forms 8329, show the lender’s name and employer identification number in Part I and enter mortgage credit certificate information on the 5 lines of Parts III and IV.

Signature

Form 8329 must be signed by an authorized representative of the lender.

Leave the paid preparer’s space blank if the return was prepared by a regular employee of the lender. Otherwise, anyone who is paid to prepare the return must sign it in the Paid Preparer’s Use Only area.

The paid preparer must complete the required preparer information and:

●Sign the return, by hand, in the space provided for the preparer’s signature (signature stamps and labels are not acceptable).

●Give a copy of the return to the lender.