The Internal Revenue Service (IRS) has released it latest LIHC Newsletter, which provides a forum for networking and sharing information about Section 42, the Low-Income Housing Tax Credit, and communicating technical knowledge and skills, guidance, and assistance for developing LIHTC issues. LIHC Newsletter #50 includes a summary of Hurricane Sandy IRS relief measures, expanded information about Revenue Procedure 2012-14 and inflation-adjusted items, and a summary of the latest IRS Administrative Procedures.
This issue also provides guidance on the effective date for recently released and subsequently revised 2013 incomes limits. The IRS says that for buildings placed in service after December 4, 2012 and before January 18, 2013, taxpayers may choose to either rely on the 2012 income limits, or rely on the revised 2013 income limits, whichever provides the greater tax benefit. The IRS also says it will honor designations made between December 5 and 11 which relied on the original income limits released on December 4, but the revised income limits released on December 11 should be used to calculate the gross rent floor.