Rev. Rul. 80-85

1980-1 C.B. 54, 1980-13 I.R.B. 6.

                       Internal Revenue Service
                                 Revenue Ruling

      DEPRECIATION; REHABILITATION EXPENDITURES; LOW INCOME RENTAL HOUSING

                           Published: March 31, 1980

26 CFR 1.167(k)-3: Definitions.

  Depreciation; rehabilitation expenditures; low income rental housing. Rev. Rul. 76-439, which holds that because a partnership did not obtain the sworn and notarized income certification required by section 1.167(k)-3(b)(4) of the regulations in existence at that time, it does not qualify to compute the depreciation deduction of rehabilitation expenditures under section 167(k) of the Code, is revoked.

  Rev. Rul. 76-439, 1976-2 C.B. 50, holds that because a partnership did not obtain the sworn and notarized income certifications required by section 1.167(k)-3(b)(4) of the Income Tax Regulations in existence at that time, it does not qualify to compute the depreciation deduction of the rehabilitation expenditures under section 167(k) of the Internal Revenue Code.  The taxpayer submitted Federal Housing Administration's Form 1705, 'Total Family Income Certification' in lieu of the sworn notarized certification.

  The amendment to section 1.167(k)-3(b)(5) of the regulations by T.D. 7642, 1979-43 I.R.B. 8, makes Rev. Rul. 76-439 obsolete with respect to property attributable to expenditures paid or incurred after July 24, 1969.  The Federal Housing Administration's Form 1705 is an acceptable form under section 1.167(k)-3(b)(5) as amended.

EFFECT ON OTHER REVENUE RULINGS

  Rev. Rul. 76-439 is revoked.

Rev. Rul. 80-85, 1980-1 C.B. 54, 1980-13 I.R.B. 6.