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Rev. Rul. 2003-44
Rev. Rul. 2003-44, 2003-18 I.R.B. 848, 2003-1 C.B. 848
                       Internal Revenue Service (I.R.S.)
                                  Revenue Rule
     LOW-INCOME HOUSING CREDIT; SATISFACTORY BOND; "BOND FACTOR" AMOUNTS FOR
                       THE PERIOD APRIL THROUGH JUNE 2003
                             Published: May 5, 2003

 Section 42.--Low-Income Housing Credit

  Low-income housing credit; satisfactory bond; "bond factor" amounts for the period April through June 2003. 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 April through June 2003.

  Low-income housing credit; satisfactory bond; "bond factor" amounts for the period April through June 2003. 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 April through June 2003.

  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 s 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 s 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 s 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 2003.

Table is too wide to be displayed as one table. Part one of two

                                    Table 1
                               Rev. Rul. 2003-44
Monthly Bond Factor Amounts for Dispositions Expressed As a Percentage of Total
                                    Credits
 Calendar Year Building Placed in Service or, if Section 42(f)(l) Election Was
                      Made, the Succeeding Calendar Year
   Month of       1989      1990     1991     1992     1993     1994     1995
 Disposition
Apr '03          16.23     30.04     41.83    51.93    60.50    59.79    59.68
May '03          16.23     30.04     41.83    51.93    60.50    59.65    59.54
Jun '03          16.23     30.04     41.83    51.93    60.50    59.51    59.40
Table continued. Part two of two
Month of Disposition  1996   1997   1998   1999   2000   2001   2002   2003
Apr '03               59.68  59.75  59.96  60.20  60.49  61.15  62.06  62.68
May '03               59.54  59.61  59.83  60.07  60.37  61.04  61.96  62.68
Jun '03               59.40  59.48  59.70  59.95  60.26  60.93  61.86  62.68

  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; Rev. Rul. 2001-53, 2001-2 C.B. 488; and Rev. Rul. 2002-72, 2002-44 I.R.B. 759. For dispositions occurring during the period January through March 2003, see Rev. Rul. 2003-22, 2003-8 I.R.B. 494.

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. 2003-44, 2003-18 I.R.B. 848, 2003-1 C.B. 848