Follow Six Rules to Avoid Converting Common Areas into Commercial Space

Follow Six Rules to Avoid Converting Common Areas into Commercial Space



Commercial space isn’t LIHTC basis eligible, but the IRS Code does allow for commercial use at a tax credit site. That commercial space may even be located in the same building where your low-income households live. For example, suppose a 50-unit tax credit building proposes that the entire first floor, except for the lobby to the residential elevators, be set aside for office space, retail shops, and a drug store. This would be acceptable. But the commercial space wouldn’t be included in the basis that’s tied to the credits that can be claimed.

Full Article Access:

Full access to complete articles from Tax Credit Housing Management Insider is for subscribers only.

Not yet ready to subscribe?

Topics