Internal Revenue Service
Revenue Ruling
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smRev. Rul. 2002-24, 2002-19 I.R.B. 848
Internal Revenue Service (I.R.S.)
Revenue Ruling
LOW-INCOME HOUSING CREDIT; SATISFACTORY BOND; "BOND FACTOR" AMOUNTS FOR
THE PERIOD APRIL THROUGH JUNE
Published: May 13, 2002
Low-income housing credit; satisfactory bond; "bond factor" amounts for the period April through June. This ruling announces the monthly bond factor amounts to be used by taxpayers who dispose of qualified low-income buildings or interests therein during the period of April through June 2002.
In Rev. Rul. 90-70 (1990-2 C.B. 3), 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 § 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.
Rev. Proc. 99-11 (1999-1 C.B. 275) established a collateral program as an alternative to providing a surety bond for taxpayers to avoid or defer recapture of the low-income housing tax credits under § 42(j)(6). Under this program, taxpayers may establish a Treasury Direct Account and pledge certain United States Treasury securities to the Internal Revenue Service as security.
This revenue ruling provides in Table 1 the bond factor amounts for calculating the amount of bond considered satisfactory under § 42(j)(6) or the amount of United States Treasury securities to pledge in a Treasury Direct Account under Rev. Proc. 99-11 for dispositions of qualified low-income buildings or interests therein during the period April through June 2002.
Rev. Rul.
2002-24
Monthly Bond Factor Amounts for Dispositions Expressed As
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a Percentage of Total Credits
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Calendar Year Building Placed in
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Month of 1988 1989 1990 1991 1992
Disposition
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Apr '02 17.76 32.73 45.44 56.24 65.46
May '02 17.76 32.73 45.44 56.24 65.46
Jun '02 17.76 32.73 45.44 56.24 65.46
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Service or, if Section 42(f)(1) Election Was Made, the Succeeding
Calendar Year
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1993 1994 1995 1996 1997 1998 1999 2000 2001 2002
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65.40 65.93 66.45 67.08 67.80 68.68 69.55 70.40 71.67 72.55
65.23 65.76 66.27 66.91 67.62 68.50 69.38 70.24 71.51 72.55
65.06 65.59 66.11 66.74 67.46 68.33 69.21 70.09 71.37 72.55
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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); Rev. Rul. 2001-2 (2001-1 C.B. 255); and Rev. Rul. 2001-53 (2001-46 I.R.B. 489). For dispositions occurring during the period January through March 2002, see Rev. Rul. 2002-8 (2002-9 I.R.B. 564).
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).
Rev. Rul. 2002-24, 2002-19 I.R.B. 848