A newly released private letter ruling from the Internal Revenue Service says that the costs of infrastructure improvements connected with a low-income housing tax credit project that are paid for by the taxpayer and dedicated to the city are includible in the basis of each low-income building in the project, and are includible in tax credit eligible basis.  The ruling, No. 200916007, applies only to the taxpayer that requested it. But private letter rulings provide an indication on the Service’s thinking regarding specific federal tax law provisions.  read more…