Private Letter Rulings

Easement Relocation Costs Includible in Site's Eligible Basis

April 30, 2015    

Facts: An owner requested a letter ruling on whether certain easement relocation costs incurred while constructing a site are includible in the eligible basis for purposes of Section 42(d)(1) of the Internal Revenue Code.

IRS Grants Extension to Make Election

November 25, 2013    

Facts: The site owner of a newly constructed building requested an extension of time to make an election under Section 42(g)(1) of the Internal Revenue Code. The owner received Form 8609, Low-Income Housing Credit Allocation Certification, reflecting a maximum allowable housing...

Owner Can Correct Error Regarding Credit Period of Building

September 27, 2013    

Facts: The IRS gives owners the option of claiming tax credits at the end of the year the buildings are placed in service or deferring until the following year. Once credits are claimed, the qualified basis is set and can never go down. In addition, any low-income units leased...

IRS Grants Extension to Make Minimum Set-Aside Election

July 18, 2013    

Facts: An owner of a multiple building project requested an extension of time to make the minimum set-aside election under Section 42(g)(1)(B) of the Internal Revenue Code. The owner elected on Form 8609, Low-Income Housing Credit Allocation and Certification, to begin the...

IRS Grants Extension to ID Buildings as Part of Single Multi-Building Project

July 18, 2013    

Facts: An owner’s site consists of multiple buildings located at a single address. The owner inadvertently failed to make an effective election for all buildings in the project for which Forms 8609 were issued, consistent with the owner’s intent to treat these...

Tax-Exempt Bond Issuer Can Amend Form 8038 After Making Clerical Error

August 30, 2012    

Facts: The developer of a low-income housing tax credit site and a bond issuer had agreed that the site would meet the 40-60 test. Under the 40-60 test, the developer reserves 40 percent of its units for those earning 60 percent or less of the area median gross income. The...

Waiving the Vacant Unit Rule During Renovation

May 28, 2012    

Facts: When a low-income housing tax credit project owner violates the Vacant Unit Rule, all vacant units previously occupied by qualified households lose their low-income status and stop generating tax credits for the owner. A developer of a multi-building site asked the IRS if the...

Excluding Garages from Eligible Basis Calculations, Gross Rent

May 28, 2012    

Facts: The “eligible basis” of a project is the cost of acquiring an existing building if there is one (but not the cost of the land), plus construction and other construction-related costs to complete the project. This number is then multiplied by the percentage of the units...