Carryover Agreement

(iv) royalties. A fee is challenged in the allocation base only to the extent that the requirements of point b) b) 2) (iii) of this section are met, and (ii) the definition of the allocation base. It is a base of $100,000 in the country, although C has owned the country since 1985. The 150,000 $US in architects` fees and construction preparation are also included in the transfer base. The expected increase in the base due to the location of the project in a qualified census area is not taken into account in determining the C allocation base. As a result, the C transfer base in the project in which the building is involved is $250,000. A: If a project is not commissioned at the end of the calendar year in which the LIHTC allocation was received, the project must be eligible for a transfer allowance. There are two federal requirements for a valid transfer allowance. First, the basis of the project must meet certain criteria, either six months after the grant date, or the completion of the calendar year in which the allocation was made. At the end of the second calendar year following the award year, it must exceed 10% of the “reasonably expected” base of the project. It`s sometimes called a 10% test. The second legal test is that the project must be commissioned until the end of the second calendar year following the award year. Therefore, to obtain a valid transfer allowance, you must have at least 10% of the project base reasonably scheduled for June 30, 2008 and the project must be commissioned by December 31, 2009.

(2) Takers. If depreciable land or land, which should be part of a project, after a transfer allocation has been made for a building that can reasonably be expected to be part of the project, but before the end of the calendar year of allocation (for endowments before July 1) or until the end of the six-month period after the date of the date , the allocation will be made (for endowments after June 30), the transfer base of the assignor is governed by the principles of this section and in accordance with Section 42 (d) (7). See also Rev. Mr. Rul. 91-38, 1991-2 C.B. 3 (see 601.601 (d) (2) (ii) (b) of this chapter). In addition, the purchaser is treated as subject to the basic analysis requirement of this section and is therefore responsible for making the necessary certificates and documents available to the Agency. (i) allowances granted before July 1.

For a wholesale allowance before July 1, an agency may require that the basic certificate be filed or received with the Agency before the end of the calendar year of award or within a reasonable period of time following the end of the calendar year of award. The Agency must review the basis provided for in.c section 2 of this section to accurately complete Form 8610, “Annual Report on Low Income Loans” and Calendar A (Form 8610), “Carryover Allocation of Low-Income Housing Credit” for the calendar year of the allowance. If the basis for certification is not taken in a timely manner, if the supporting documents are missing, if they are insufficient or do not actually support certification, the Agency should inform the taxpayer and strive to obtain an appropriate file. If the Agency cannot verify, prior to the filing of Form 8610, whether the policyholder has fulfilled the basic condition of 10% of the deferral allowance made before July 1, the award is not valid and is treated as if it had not been made, and the allocation of deferrals should not be included in Schedule A (Form 8610). A: If you fail one of the two requirements mentioned above, your project will not have a valid transfer assignment.