Internal Revenue Service
Revenue Ruling

TaxLinks.com   sm

Rev. Rul. 2002-51, 2002-33 I.R.B. 327

Internal Revenue Service (I.R.S.)

Revenue Ruling

LOW-INCOME HOUSING CREDIT; SATISFACTORY BOND; "BOND FACTOR" AMOUNTS FOR THE PERIOD JULY THROUGH SEPTEMBER 2002

Published: August 19, 2002

Section 42.--Low-Income Housing Credit

  Low-income housing credit; satisfactory bond; "bond factor" amounts for the period July through September 2002. 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 July through September 2002.

  In Rev. Rul. 90-60, 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 July through September 2002.

  Table 1 Rev. Rul. 2002-51 Monthly Bond Factor Amounts for Dispositions  Expressed As a Percentage of Total Credits    
----------------------------------------------
                 Calendar Year Building Placed in
-------------------------------------------------
  Month of     1988   1989   1990   1991   1992  
 Disposition                                      
-------------------------------------------------
 Jul '02        17.76  32.73  45.44  56.24  65.46  
Aug '02        17.76  32.73  45.44  56.24  65.46  
Sep '02        17.76  32.73  45.44  56.24  65.46  
-------------------------------------------------
Service or, if Section 42(f)(1) Election Was Made, the Succeeding    
           Calendar Year                                              
---------------------------------------------------------------------
 1993   1994   1995   1996   1997   1998   1999   2000   2001   2002  
---------------------------------------------------------------------
 64.90  65.42  65.94  66.58  67.29  68.17  69.05  69.94  71.25  72.55
 64.74  65.26  65.78  66.42  67.13  68.01  68.90  69.81  71.14  72.55
 64.58  65.10  65.62  66.26  66.98  67.86  68.76  69.68  71.04  72.55
---------------------------------------------------------------------

  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, 2001-2 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. For dispositions occurring during the period April through June 2002, see Rev. Rul. 2002-24, 2002-19 I.R.B. 848.

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 number).

Rev. Rul. 2002-51, 2002-33 I.R.B. 327