Internal Revenue Service
Revenue Ruling
TaxLinks.com
smRev. Rul. 2004-40
Rev. Rul. 2004-40, 2004-15 I.R.B. 716
Internal Revenue Service (I.R.S.)
Revenue Ruling
LOW-INCOME HOUSING CREDIT; SATISFACTORY BOND; "BOND FACTOR" AMOUNTS FOR
THE PERIOD APRIL THROUGH JUNE 2004
Published: April 12, 2004
Section 42.--Low-Income Housing Credit
Low-income housing credit; satisfactory bond; "bond factor" amounts for the period April through June 2004. 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 2004.
Low-income housing credit; satisfactory bond; "bond factor" amounts for the period April through June 2004. 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 2004.
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 2004.
------------------------------------------------------------------------
Table 1 Rev. Rul. 2004-40 Monthly Bond Factor Amounts for Dispositions
Credits
------------------------------------------------------------------------
--------------------------------------
Expressed As a Percentage of Total
--------------------------------------
Calendar Year Building Placed in
-----------------------------------------
Month 1990 1991 1992 1993 1994
of
Disposition
-----------------------------------------
Apr 15.55 28.88 40.34 50.12 58.45
'04
May 15.55 28.88 40.34 50.12 58.45
'04
Jun 15.55 28.88 40.34 50.12 58.45
'04
-----------------------------------------
Service or, if Section 42(f)(1) Election Was Made, the Succeeding
Calendar Year
---------------------------------------------------------------------
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
---------------------------------------------------------------------
57.84 57.87 57.99 58.25 58.56 58.98 59.74 60.79 62.04 62.68
57.71 57.75 57.87 58.13 58.45 58.87 59.64 60.69 61.93 62.68
57.59 57.63 57.75 58.02 58.34 58.77 59.55 60.59 61.84 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; Rev. Rul. 2002-72, 2002-2 C.B. 759; and Rev. Rul. 2003-117, 2003-46 I.R.B. 1051. For dispositions occurring during the period January through March 2004, see Rev. Rul. 2004-16, 2004-8 I.R.B. 503.
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. 2004-40, 2004-15 I.R.B. 716