Form 8329 (Rev. 10-2012)
Page 2
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 the activity and file Form 8329. (See Temporary
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.
Future Developments
For the latest information about developments
related to Form 8329 and its instructions, such as
legislation enacted after they were published, go to
www.irs.gov/form8329.
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 Department of the Treasury,
Internal Revenue Service Center, Ogden, UT 84201.
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. The maximum penalty is
$2,000.
Definitions
Mortgage Credit Certificate. 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).
Qualified mortgage credit certificate program. 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.)
Aggregate amount. The aggregate amount (the
certified indebtedness times the certificate credit
rate for each MCC, totaled for all mortgage credit
certificates issued under a single MCC program),
may not exceed 25% of the nonissued bond
amount for which the election not to issue bonds
was made. See section 25(d)(2).
Certified indebtedness amount. 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.
Certificate credit rate. 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
Temporary 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 (e).
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 (d). Enter the date the issuing authority
issued the certificate for the amount included in
column (e). 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.
If the loan is for a reissued MCC as permitted by
the regulations, the date of the reissued certificate
should be given, preceded by the word “Reissued.”
For example, “Reissued, July 25, 2008.”
Column (f). Enter the certificate credit rate for each
MCC.
Column (g). For each certificate amount listed in
column (e), multiply by the certificate credit rate
associated with that certificate shown in column (f).
Line 6. This is the aggregate amount of MCCs
issued (Part IV, column (g)) 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.
Additional Entries
If the lender must report on more than 5 mortgage
credit certificates, it should report these additional
certificates on an attached statement formatted like
Form 8329.
Instead of formatting its own statement, the lender
may use one Form 8329 as a transmittal document
and use additional Forms 8329 as statements. 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 remainder of this Form
8329, making certain that all mortgage credit
certificate amounts reported in all the statements in
Part IV, column (g) 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.
Paid Preparer Use Only
Anyone who prepares the return but does not
charge the organization should not sign the return.
Certain others who prepare the return should not
sign. For example, a regular, full-time employee of
the lender, such as a clerk, secretary, etc., should
not sign.
Generally, anyone who is paid to prepare a return
must sign it and fill in the other blanks in the Paid
Preparer Use Only area of the return. A paid preparer
cannot use a social security number in the paid Paid
Preparer Use Only box. The paid preparer must use
a preparer tax identification number (PTIN). If the
paid preparer is self-employed, the preparer should
enter his or her address in the box. The paid
preparer must:
• Sign the return in the space provided for the
preparer’s signature,
• Enter the preparer information, and
• Give a copy of the return to the lender.
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.
You are not required to provide the information
requested on a form that is subject to the
Paperwork Reduction Act unless the form displays a
valid OMB control number. Books or records
relating to a form or its instructions must be retained
as long as their contents may become material in
the administration of any Internal Revenue law.
Generally, tax returns and return information are
confidential, as required by section 6103.
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 . . . . . . 1 hr., 5 min.
Preparing and sending
the form to the IRS . . . . . 1 hr., 12 min.
If you have comments concerning the accuracy of
these time estimates or suggestions for making this
form simpler, we would be happy to hear from you.
You can write to the Internal Revenue Service, Tax
Products Coordinating Committee,
SE:W:CAR:MP:T:M:S, 1111 Constitution Ave. NW,
IR-6526, Washington, DC 20224. Do not send the
form to this address. Instead, see Where To File on
this page.
