What is the maximum amount of tax-exempt interest that can be paid on a qualified zone academy bond?

The maximum amount of tax-exempt interest that can be paid on a qualified zone academy bond is determined by the issuer and must comply with the provisions of section 146.

How do I calculate the credit amount that needs to be reported on Form 1097-BTC?

To calculate the credit amount that needs to be reported on Form 1097-BTC, you will need to determine the total face amount of the qualified zone academy bonds issued during the calendar year. Then, determine the percentage of the bond's principal amount that has been redeemed or matured and report this percentage in box 5c for each credit allowance date. If a clean renewable energy bond or qualified tax credit bond is issued, redeemed, or matures during the 3-month period ending on a credit allowance date with respect to which you are reporting the credit, prorate the credit amount for that credit allowance date.

How do I report the additional payment of tax-exempt interest made on redemption or maturity?

If a qualified zone academy bond was redeemed or matured, and an additional payment of tax-exempt interest was made, you must include this amount in Box 5i. This is in addition to the tax-exempt interest paid during the year, which should be reported in Box 5b.

What is a qualified zone academy bond?

A qualified zone academy bond is a type of tax-exempt bond that can be issued by state and local governments for the purpose of financing the construction, renovation, or repair of public school facilities in designated economically distressed areas. The bond proceeds must be used to finance the acquisition, construction, expansion, repair, or refinancing of a qualified school facility.

How do I report the credit amount on Form 1097-BTC?

To report the credit amount on Form 1097-BTC, you will need to enter the prorated percentage of the bond's principal amount that has been redeemed or matured in box 5c for each credit allowance date. For the annual reporting period and December 15th credit allowance date, enter the total face amount of the qualified zone academy bonds issued during the calendar year multiplied by the percentage determined in step 2.

What are the rules for prorating a bond's credit allowance?

If a qualified zone academy bond was redeemed or matured before the end of its term and an additional payment of tax-exempt interest was made, you must follow the proration rules. This means that you should divide the number of days in which the bond was outstanding during the period by the total number of days included in the 3-month period. The percentage of credit allowed for that credit allowance date is then multiplied by the credit amount determined in STEP 1.

What happens to the bond if it is redeemed or matures before the end of its term?

If a qualified zone academy bond is redeemed or matures before the end of its term, the issuer must make an additional payment of tax-exempt interest equal to 30% of the remaining principal amount of the bond. This additional payment must be made within 90 days after the date on which the bond was redeemed or matured.

Form 1097-BTC

Fill out this form

Chat with document

Create Web Form

Bond Tax Credit

Rev. December 2019

These instructions provide guidance on how to complete Form 1097-BTC, which is used by bond issuers or their agents to report tax credits related to certain types of bonds. Recipients of these credits, such as individuals and entities, are required to report the credits on their own tax returns. The form includes information about the issuer, recipient, bond type, and amount of credits allowed for each month of the calendar year.

Instructions

Form 1097-BTC Instructions - Instructions for Form 1097-BTC, Bond Tax Credit

Search tags

Form 1097-BTC

FAQ

What is the maximum amount of tax-exempt interest that can be paid on a qualified zone academy bond?
The maximum amount of tax-exempt interest that can be paid on a qualified zone academy bond is determined by the issuer and must comply with the provisions of section 146.
How do I calculate the credit amount that needs to be reported on Form 1097-BTC?
To calculate the credit amount that needs to be reported on Form 1097-BTC, you will need to determine the total face amount of the qualified zone academy bonds issued during the calendar year. Then, determine the percentage of the bond's principal amount that has been redeemed or matured and report this percentage in box 5c for each credit allowance date. If a clean renewable energy bond or qualified tax credit bond is issued, redeemed, or matures during the 3-month period ending on a credit allowance date with respect to which you are reporting the credit, prorate the credit amount for that credit allowance date.
How do I report the additional payment of tax-exempt interest made on redemption or maturity?
If a qualified zone academy bond was redeemed or matured, and an additional payment of tax-exempt interest was made, you must include this amount in Box 5i. This is in addition to the tax-exempt interest paid during the year, which should be reported in Box 5b.
What is a qualified zone academy bond?
A qualified zone academy bond is a type of tax-exempt bond that can be issued by state and local governments for the purpose of financing the construction, renovation, or repair of public school facilities in designated economically distressed areas. The bond proceeds must be used to finance the acquisition, construction, expansion, repair, or refinancing of a qualified school facility.
How do I report the credit amount on Form 1097-BTC?
To report the credit amount on Form 1097-BTC, you will need to enter the prorated percentage of the bond's principal amount that has been redeemed or matured in box 5c for each credit allowance date. For the annual reporting period and December 15th credit allowance date, enter the total face amount of the qualified zone academy bonds issued during the calendar year multiplied by the percentage determined in step 2.
What are the rules for prorating a bond's credit allowance?
If a qualified zone academy bond was redeemed or matured before the end of its term and an additional payment of tax-exempt interest was made, you must follow the proration rules. This means that you should divide the number of days in which the bond was outstanding during the period by the total number of days included in the 3-month period. The percentage of credit allowed for that credit allowance date is then multiplied by the credit amount determined in STEP 1.
What happens to the bond if it is redeemed or matures before the end of its term?
If a qualified zone academy bond is redeemed or matures before the end of its term, the issuer must make an additional payment of tax-exempt interest equal to 30% of the remaining principal amount of the bond. This additional payment must be made within 90 days after the date on which the bond was redeemed or matured.

HOW TO

How to fill out Form 1097-BTC for free, online in 3 easy steps:

1
Open form template in editor
Click on the “Get this template” button.
2
Fill out Form 1097-BTC
Wait a moment and you will be redirected to our online PDF Filler app.
3
Download file
Download your completed Form 1097-BTC for free. You can also save it to a cloud storage.

ABOUT

Federal tax forms

Form 1097-BTC is one of Federal tax forms that are documents used to report and file federal income taxes with the Internal Revenue Service (IRS) in the United States. These forms are used by individuals, businesses, and organizations to report their income, deductions, and other relevant information necessary for calculating their federal tax liability.

The most commonly used federal tax form is the Form 1040, which is used by individual taxpayers to report their personal income tax. Other commonly used forms include the Form 1065 for partnerships, Form 1120 for corporations, and Form 990 for tax-exempt organizations.

Federal tax forms typically require taxpayers to report various sources of income, such as wages, salaries, and tips, as well as income from investments, rental properties, and other sources. The forms also allow taxpayers to claim deductions and credits for various expenses, such as charitable contributions, mortgage interest, and healthcare expenses.

It is important to file federal tax forms accurately and on time, as failure to do so can result in penalties and interest charges from the IRS.

FEATURES

PDF Filler

The easiest way to fill Form 1097-BTC online

Quickly fill out Form 1097-BTC
Looking for a way to quickly fill Form 1097-BTC online? With our online free PDF form filler, you’ll know how to how to edit and fill this pdf document in less than a minute.
Easy to use online PDF editor
Fed up with printing out PDF files so you can edit them, before rescanning and sending them back? Edit PDF documents for free online. Use our online pdf editor to save time and paper.
Great tools, all platforms
Wondering how to fill in Form 1097-BTC on a Mac, or maybe how to use a PDF filler free? Our online PDF tools work on all platforms.
Secure file storage
Completed "Form 1097-BTC" files are stored in a secured database managed by Amazon Cloud hosting. You can delete your files from our system anytime. In any case, these files are automatically deleted after 24 hours.
Chat with Form 1097-BTC
Chat with "Form 1097-BTC" on Chatize that is a free PDF reader assistant. Ask questions and get answers from "Form 1097-BTC". Just click on Chat With Document button above.

Products

Docs

Websites

About