Internal Revenue Service
Revenue Ruling
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In Rev. Rul. 90-60, 1990-2 C.B. 4, the Internal Revenue Service provided guidance to taxpayers concerning the general methodology used by the Treasury Department in computing the bond factor amounts used in calculating the amount of bond considered satisfactory by the Secretary under section 42(j)(6) of the Internal Revenue Code. It further announced that the Secretary would publish in the Internal Revenue Bulletin a table of "bond factor" amounts for dispositions occurring during each calendar month.
This revenue ruling provides in Table 1 the bond factor amounts for calculating the amount of bond considered satisfactory under section 42(j)(6) for dispositions of qualified low-income buildings or interests therein during the period October through December 2000. Table 1 also provides a summary of the bond factor amounts for dispositions occurring during the period January through September 2000. Table 2 provides a summary of bond factor amounts for dispositions occurring during the period January through December 1999. Table 3 provides a summary of the bond factor amounts for dispositions occurring during the period January through December 1998.
Due to a miscalculation, Rev. Rul. 98-13, 1998-1 C.B. 686; Rev. Rul. 98-31, 1998-1 C.B. 1269; Rev. Rul. 98-45, 1998-2 C.B. 364; and Rev. Rul. 99-1, 1999-1 C.B. 265, are in error regarding the specific bond factor amounts for buildings placed in service in calendar year 1987 and disposed of in calendar year 1998. Further, Rev. Rul. 99-18, 1999-1 C.B. 868; Rev. Rul. 99-24, 1999-1 C.B. 1096; Rev. Rul. 99-38 1999-2 C.B. 335; Rev. Rul. 99-54 1999-2 C.B. 675; Rev. Rul. 2000-22 2000-16 I.R.B. 880; and Rev. Rul. 2000-31, 2000-26 I.R.B. 1269, are in error regarding the bond factor amount for buildings placed in service in calendar years 1987 through 2000 and disposed of in calendar year 1999 and January 2000 through June 2000. The present revenue ruling provides a complete list of the corrected bond factor amounts.
Under the authority of section 7805(b), taxpayers that posted bonds and taxpayers that established Treasury Direct Accounts with the Service pursuant to Rev. Proc. 99-11, 1999-1 C.B. 275, based upon the above mentioned bond factor amounts may continue to rely on those figures. Taxpayers that choose to amend their previously posted bonds by using the corrected bond factor amounts listed in this revenue ruling may do so by submitting an amended Form 8693, Low- Income Housing Tax Credit Disposition Bond, to the Internal Revenue Service Center, Philadelphia, PA 19255. The amended form may be submitted by either the taxpayer or the surety. Taxpayers that choose to amend the amount of securities pledged in their previously established Treasury Direct Accounts with the Service by using the corrected bond factor amounts listed in this revenue ruling should contact the Bureau of the Public Debt, Division of Customer Service, IRS Collateral Desk at (302 480-6158 for further information. _____________________________________________________________________
TABLE 1
Rev. Rul.
2001-2
Monthly Bond Factor Amounts for
Dispositions Expressed
As
a Percentage of Total Credits
Calendar
Year Building Placed in Service
or, if
Section 42(f)(1) Election Was Made,
the
Succeeding Calendar Year
_____________________________________________________________________
Month of
Disposition 1987 1988 1989 1990 1991 1992 1993
_____________________________________________________________________
Jan '00 37.59 51.81
63.64 73.62 75.52 77.92 80.36
Feb '00 37.59 51.81
63.64 73.62 75.31 77.69 80.12
Mar '00 37.59 51.81
63.64 73.62 75.09 77.47 79.88
Apr '00 39.75 54.78
67.30 77.84 79.96 83.31 86.76
May '00 39.75 54.78
67.30 77.84 79.74 83.07 86.51
Jun '00 39.75 54.78
67.30 77.84 79.52 82.84 86.26
Jul '00 39.75 54.78
67.30 77.84 79.31 82.61 86.02
Aug '00 39.75 54.78
67.30 77.84 79.09 82.39 85.78
Sep '00 39.75 54.78
67.30 77.84 78.89 82.17 85.55
Oct '00 39.75 54.78
67.30 77.84 78.68 81.95 85.32
Nov '00 39.75 54.78
67.30 77.84 78.48 81.74 85.10
Dec '00 39.75 54.78
67.30 77.84 78.28 81.54 84.88
_____________________________________________________________________
[table 1 continued]
_____________________________________________________________________
Month of
Disposition 1994
1995 1996 1997 1998 1999 2000
_____________________________________________________________________
Jan '00 82.70 85.05
87.63 90.38 93.52 96.69 97.21
Feb '00 82.44 84.78
87.35 90.08 93.17 96.26 97.21
Mar '00 82.20 84.53
87.07 89.79 92.85 95.88 97.21
Apr '00 90.16 91.64
97.41 101.43 105.89 110.31 112.52
May '00 89.90 93.36
97.12 101.11 105.54 109.93 112.52
Jun '00 89.64 93.09
96.83 100.81 105.22 109.59 112.52
Jul '00 89.38 92.82
96.56 100.53 104.92 109.29 112.52
Aug '00 89.14 92.57
96.29 100.25 104.64 109.02 112.52
Sep '00 88.89 92.32
96.04 99.99 104.37 108.77 112.52
Oct '00 88.66 92.08
95.79 99.74 104.12 108.55 112.52
Nov '00 88.43 91.84
95.55 99.50 103.89 108.35 112.52
Dec '00 88.21 91.61
95.32 99.28 103.66 108.16 112.52
_____________________________________________________________________
_____________________________________________________________________
TABLE 2
Rev.
Rul. 2001-2
Monthly Bond Factor
Amounts for Dispositions Expressed
As a Percentage of Total Credits
Calendar
Year Building Placed in Service
or, if
Section 42(f)(1) Election Was Made,
the
Succeeding Calendar Year
_____________________________________________________________________
Month of
Disposition 1987 1988 1989 1990 1991 1992 1993
_____________________________________________________________________
Jan '99 49.72 60.91
70.15 70.99 72.34 73.94 75.54
Feb '99 49.72 60.91
70.15 70.79 72.13 73.72 75.31
Mar '99 49.72 60.91
70.15 70.60 71.93 73.51 75.09
Apr '99 52.57 64.41
74.17 75.18 77.36 79.85 82.37
May '99 52.57 64.41
74.17 74.97 77.14 79.62 82.13
Jun '99 52.57 64.41
74.17 74.77 76.93 79.39 81.89
Jul '99 52.57 64.41
74.17 74.57 76.72 79.18 81.67
Aug '99 52.57 64.41
74.17 74.37 76.52 78.96 81.44
Sep '99 52.57 64.41
74.17 74.18 76.32 78.75 81.23
Oct '99 52.57 64.41
74.17 73.99 76.12 78.55 81.02
Nov '99 52.57 64.41
74.17 73.80 75.93 78.35 80.81
Dec '99 52.57 64.41
74.17 73.62 75.74 78.15 80.61
_____________________________________________________________________
[table 2 continued]
_____________________________________________________________________
Month of
Disposition 1994 1995
1996 1997
1998 1999
_____________________________________________________________________
Jan '99
76.98 78.38 79.94 81.59 83.60 83.98
Feb '99
76.75 78.13 79.68 81.32 83.28 83.98
Mar '99 76.52 77.90 79.44 81.07 83.00 83.98
Apr '99
84.77 87.15 89.75 92.48 95.53 97.21
May '99
84.52 86.90 89.49 92.20 95.25 97.21
Jun '99
84.28 86.65 89.23 91.95 94.99 97.21
Jul '99 84.04 86.41 88.99 91.71 94.76 97.21
Aug '99
83.81 86.18 88.76 91.48 94.55 97.21
Sep '99
83.59 85.95 88.54 91.27 94.37 97.21
Oct '99
83.37 85.74 88.32 91.07 94.20 97.21
Nov '99
83.17 85.53 88.12 90.88 94.04 97.21
Dec '99
82.96 85.33 87.93 90.71 93.90 97.21
_____________________________________________________________________
_____________________________________________________________________
TABLE 3
Rev.
Rul. 2001-2
Monthly Bond Factor Amounts for
Dispositions Expressed
As
a Percentage of Total Credits
Calendar
Year Building Placed in Service
or, if
Section 42(f)(1) Election Was Made,
the
Succeeding Calendar Year
_____________________________________________________________________
Month of
Disposition
1987 1988
1989 1990
1991 1992
_____________________________________________________________________
Jan '98 69.28
79.57 81.84 84.75 88.14 91.97
Feb '98 69.28
79.57 81.59 84.49 87.86 91.67
Mar '98 69.28
79.57 81.35 84.24 87.59 91.37
Apr '98 65.52
75.25 75.96 77.87 80.16 82.79
May '98 65.52
75.25 75.75 77.65 79.93 82.55
Jun '98 65.52
75.25 75.54 77.44 79.71 82.31
Jul '98 65.52
75.25 75.33 77.22 79.49 82.08
Aug '98 65.52
75.25 75.13 77.01 79.27 81.85
Sep '98 65.52
75.25 74.93 76.81 79.06 81.63
Oct '98 65.52
75.25 74.73 76.61 78.85 81.41
Nov '98 65.52
75.25 74.54 76.41 78.65 81.20
Dec '98 65.52
75.25 74.35 76.22 78.45 80.99
_____________________________________________________________________
[table 3 continued]
_____________________________________________________________________
Month of
Disposition 1993
1994 1995
1996 1997 1998
_____________________________________________________________________
Jan '98
95.92 99.75 103.57
107.70 111.85 112.52
Feb '98
95.59 99.39 103.18 107.25
111.28 112.52
Mar '98
95.27 99.04 102.80
106.83 110.79 112.52
Apr '98
85.46 87.97 90.41 93.03 95.60 97.21
May '98
85.20 87.69 90.12 92.74 95.31 97.21
Jun '98
84.95 87.43 89.85 92.46 95.05 97.21
Jul '98
84.70 87.18 89.60 92.21 94.81 97.21
Aug '98
84.47 86.93 89.35 91.97 94.61 97.21
Sep '98
84.23 86.70 89.12 91.74 94.42 97.21
Oct '98
84.01 86.47 88.89 91.53 94.25 97.21
Nov '98
83.79 86.25 88.68 91.33 94.09 97.21
Dec '98
83.58 86.04 88.47 91.14 93.94 97.21
_____________________________________________________________________
For a list of bond factor amounts applicable to dispositions occurring during other calendar years, see Rev. Rul. 98- 3, 1998-1 C.B. 248.
EFFECT ON OTHER REVENUE RULINGS
Rev. Rul. 98-13, 1998-1 C.B. 686; Rev. Rul. 98-31, 1998-1 C.B. 1269; Rev. Rul. 98-45, 1998-2 C.B. 364; Rev. Rul. 99-1, 1999-1 C.B. 265; Rev. Rul. 99-18,1999-1 C.B. 868; Rev. Rul. 99-24, 1999-1 C.B. 1096; Rev. Rul. 99-38, 1999-36 I.R.B. 335; Rev. Rul. 99-54, 1999-51 I.R.B. 675; Rev. Rul. 2000-22, 2000-16 I.R.B. 880; Rev. Rul]. 2000-31, 2000-26 I.R.B. 1269; and Rev. Rul. 2000-48, 2000-42 I.R.B. 349, are revoked.
DRAFTING INFORMATION
The principal author of this revenue ruling is Gregory N. Doran of the Office of Associate Chief Counsel (Passthroughs and Special Industries). For further information regarding this revenue ruling, contact Mr. Doran at (202) 622-3040 (not a toll-free call).