Independent form guide. BrieflyGo is not affiliated with or endorsed by IRS, USCIS, SSA, DOL, or any U.S. government agency. Official forms are sourced from public government websites.
Official form guide
Form 4255: 4255
IRS Form 4255 is used to calculate and report the recapture of an investment tax credit previously claimed on Section 38 property. Taxpayers file it when they dispose of, or cease to use, the credited property before the end of its useful life, triggering a partial or full recapture of the credit.
Need help with Form 4255?
Open it in the AI Editor for field guidance, checks, and PDF export.
Need help? AI Editor guides you through every field of Form 4255.
Start filling →Form Overview
IRS Form 4255 - 4255
IRS Form 4255 is used to calculate and report the recapture of an investment tax credit previously claimed on Section 38 property. Taxpayers file it when they dispose of, or cease to use, the credited property before the end of its useful life, triggering a partial or full recapture of the credit.
Risk Radar
Scan points- 1Using an outdated edition of Form 4255 can cause the IRS to reject your submission.
- 2Using the wrong placed-in-service date
- 3Applying the incorrect recapture percentage from the table
- 4Failing to include all disposed property in the calculation
- 5Attaching the form to the wrong tax year return
Plain English
If you got a tax break for buying certain equipment or property and later sold, scrapped, or stopped using that property early, you may have to give some of that break back. Form 4255 helps you figure out how much of the credit you need to repay and attaches it to your tax return.
Submission Date
- Filing date: 2026-01-08 12:10:39
- Preparation window: collect IDs, supporting records, and signatures in advance.
- Final review: verify names, dates, and required fields before submission.
AI co-pilot
Fill it faster. Catch mistakes before you file.
What this form is for
- Use this form when you have disposed of or stopped using property for which you previously claimed an investment credit.
- Do not use this form if you never claimed an investment credit or if the property is still in service.
- Check Form 3468 or your prior year’s return to confirm the original credit amount before completing Form 4255.
Form selector
Use this form or another form?
Disposition of Section 38 property with investment credit
To claim the original credit
✓ Verify credit amount and placed‑in‑service date
Sale of business assets with no investment credit
To report gain/loss
✓ Confirm whether any credit was previously claimed
Change of use of property (e.g., to personal use)
To recapture credit
✓ Ensure the change qualifies as a recapture event
Recapture of energy credit
Different credit type
✓ Confirm credit type before using 4255
Recapture of low‑income housing credit
Separate recapture rules
✓ Review specific credit instructions
Deadline or filing window
Form 4255 is filed with the annual income tax return for the year the recapture event occurs. The deadline follows the return’s due date, including any extensions granted. There is no separate standalone deadline for the form itself.
- —Original investment credit amount | × Recapture percentage from IRS table | Recapture amount | Ensure you use the correct year‑based percentage
- —Number of full years held | Look up in IRS recapture table | Recapture percentage | Verify the placed‑in‑service and disposition dates are correct
Checklist
What you need before filling it out
Original credit amount
Prior year Form 3468 or tax return copy · Tax records or IRS transcript
Placed‑in‑service date
Purchase invoice or asset register · Accounting system
Disposition date
Bill of sale, donation receipt, or internal memo · Asset disposal file
Recapture percentage
IRS Publication 946 tables or Form 4255 instructions · IRS website
Supporting documentation for cessation of use
Internal policy change memo or lease termination · Corporate records
Before you submit
- 1Confirm you are using the latest edition of Form 4255
- 2Verify that a recapture event actually occurred during the tax year
- 3Locate the original investment credit amount from Form 3468 or prior year return
- 4Calculate the number of full years the property was held after being placed in service
- 5Apply the correct recapture percentage from the IRS table for those years
- 6Multiply the credit by the percentage to get the recapture amount
- 7Enter the recapture amount on the appropriate line of Form 4255
- 8Attach Form 4255 to your completed federal income tax return
- 9Sign the return (and Form 4255 if filing paper) before sending
- 10Keep a copy of the form and all supporting documents for your records
How to file this form
- 1Complete Form 4255 following the line‑by‑line instructions in the current year’s instruction booklet
- 2Attach the form to your federal income tax return (Form 1040, 1120, 1065, etc.) as directed
- 3If filing electronically, include the form as part of your software’s attachment step
- 4If filing paper, mail the return and attachments to the IRS address indicated for your return type
- 5Retain a copy of the filed return and Form 4255 for at least three years
- 6Check your IRS account or correspondence for any acceptance notices or requests for additional information
Known limitations
- 1Form 4255 only recaptures the federal investment credit; state credits may have separate forms
- 2The form does not compute gains or losses on the disposition; those are reported elsewhere (e.g., Form 4797)
- 3It cannot be used to claim a credit; it is solely for recapture
- 4The IRS recapture tables are updated periodically; using an outdated table produces incorrect results
Field map
Compact field-by-field guide
General Info
2 items
Full legal name and taxpayer identification number (SSN or EIN).
Current mailing address.
Details
2 items
Complete all applicable sections of this form according to the official IRS instructions.
Enter the relevant dollar amount if this form involves tax calculation.
Certification
1 items
Read and acknowledge any certifications required by this form.
Signatures
1 items
Sign and date. Unsigned forms cannot be processed.
Almost done reviewing the fields?
Fillable formOpen in Editor->The most recent version of Form 4255 is revised annually; check the IRS website for the current edition date before filing.
What changed or needs a fresh check
- Edition date – verify it matches the current IRS revision
- Fee – there is no filing fee for Form 4255 itself
- Mailing address – use the address for your main tax return based on state and form type
- Deadline – aligns with the due date of the return you are attaching it to
- Signature – sign the form if filing a paper return
- Required evidence – keep records of the original credit and disposition documents
Quick Facts
Downloads
After you file
- 1Store a copy of the filed Form 4255 with your tax records for the year of filing
- 2Keep the original Form 3468 and related asset records for at least seven years in case of an audit
- 3Monitor your IRS online account for any notices regarding the recapture amount
- 4If you receive a notice, compare the IRS calculation to your own and respond promptly
- 5Update your asset register to reflect the disposition and any remaining credit basis
- 6File Form 3115 if you need to change your accounting method related to the recaptured property
Sources
- SRCForm title: IRS Form 4255, Application for Extension of Time to File Certain Exempt Organization Returns
- SRCPurpose: Request an automatic 6‑month extension to file Form 990, 990‑EZ, 990‑PF, or 990‑T for eligible organizations
- SRCEligibility: Applies to tax‑exempt organizations required to file the listed returns
- SRCDeadline for filing extension: Must be submitted by the original due date of the return (including any automatic 3‑month extension for calendar‑year filers)
- SRCSubmission method: Can be filed electronically through the IRS Modernized e‑File (MeF) system or mailed to the address specified in the instructions
- SRCSignature requirement: Must be signed and dated by an authorized officer of the organization
- SRCFee: No filing fee is required for Form 4255
- SRCEffect of approval: Extends the filing deadline by 6 months from the original due date
- SRCDocumentation: No additional supporting documents are required unless the IRS requests them
- SRCContact information: Instructions provide a phone number for the Exempt Organizations (EO) Customer Account Services for questions
Common confusion points
Confusing Form 4255 with Form 3468
Both relate to investment credit but 3468 claims it, 4255 recaptures it
→ Check whether you are adding or removing credit
Thinking the form is filed separately
It must be attached to the income tax return
→ Verify attachment instructions in the form’s directions
Using the sale date instead of the placed‑in‑service date for the holding period
The holding period starts when the property is placed in service
→ Locate the placed‑in‑service date in your asset records
Assuming all dispositions trigger 100% recapture
The percentage declines each year
→ Consult the IRS recapture table for the correct percentage
Believing the form applies to any tax credit
It only applies to the investment credit under Section 38
→ Review the form title and instructions to confirm scope
Overlooking that the recapture amount increases your tax due
It is added to total tax, not subtracted
→ Check the line where the recapture amount flows into your return
Workflow map
Related forms and next steps
Before
Current
After
Often used with
⚠ If something goes wrong
- Form 1040-X – to amend the return if the recapture was miscalculated
- IRS Notice CP2000 – to respond to a proposed tax change
- Form 843 – to request a refund of overpaid tax due to excess recapture
Source transparency
Copyright & Licensing - US Government Forms
BrieflyGo links to and explains official public form sources. We are not a government agency, and this page is for general form guidance, not legal advice.
Never sign without understanding every clause.
BrieflyGo reviews your contracts in plain English — instantly.