IRS Tax Law » Revenue Ruling 2004-100

Rev. Rul. 2004-100
Rev. Rul. 2004-100, 2004-44 I.R.B. 718
                       Internal Revenue Service (I.R.S.)
                                 Revenue Ruling
     LOW-INCOME HOUSING CREDIT; SATISFACTORY BOND; “BOND FACTOR” AMOUNTS FOR
                    THE PERIOD JANUARY THROUGH DECEMBER 2004
                           Published: November 1, 2004

Section 42.–Low-Income Housing Credit

Low-income housing credit; satisfactory bond; “bond factor” amounts for the period January through December 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 January through December 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 January through December 2004.

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Table 1 Rev.
————–
————–
Month of
Disposition
————–
Jan ‘04
Feb ‘04
Mar ‘04
Apr ‘04
May ‘04
Jun ‘04
Jul ‘04
Aug ‘04
Sep ‘04
Oct ‘04
Nov ‘04
Dec ‘04
————–
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Rul. 2004-100 Monthly Bond Factor Amounts for Dispositions Expressed As a
————————————————————————–
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Percentage of Total Credits
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   Calendar Year Building Placed in Service or, if Section 42(f)(1) Election
                                              Calendar Year
—————————————————————————-
1990   1991   1992   1993   1994   1995   1996   1997   1998   1999   2000
—————————————————————————-
14.71 27.31 38.15 47.40 55.27 54.52 54.00 53.57 53.27 53.01 52.84
14.71 27.31 38.15 47.40 55.27 54.40 53.89 53.45 53.16 52.91 52.74
14.71 27.31 38.15 47.40 55.27 54.28 53.77 53.34 53.05 52.81 52.65
15.55 28.88 40.34 50.12 58.45 57.84 57.87 57.99 58.25 58.56 58.98
15.55 28.88 40.34 50.12 58.45 57.71 57.75 57.87 58.13 58.45 58.87
15.55 28.88 40.34 50.12 58.45 57.59 57.63 57.75 58.02 58.34 58.77
14.75 27.38 38.24 47.52 55.41 53.96 53.46 53.05 52.78 52.56 52.43
14.75 27.38 38.24 47.52 55.41 53.85 53.36 52.95 52.68 52.47 52.35
14.75 27.38 38.24 47.52 55.41 53.75 53.26 52.86 52.59 52.38 52.27
15.52 28.81 40.24 50.00 58.30 56.99 57.04 57.18 57.46 57.82 58.28
15.52 28.81 40.24 50.00 58.30 56.88 56.93 57.08 57.37 57.72 58.19
15.52 28.81 40.24 50.00 58.30 56.77 56.83 56.97 57.27 57.64 58.11
—————————————————————————-
Was Made, the Succeeding
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2001   2002   2003   2004
—————————-
52.99 53.40 54.02 54.15
52.90 53.30 53.92 54.15
52.81 53.22 53.83 54.15
59.74 60.79 62.04 62.68
59.64 60.69 61.93 62.68
59.55 60.59 61.84 62.68
52.61 53.03 53.64 54.15
52.54 52.97 53.59 54.15
52.47 52.91 53.54 54.15
59.08 60.16 61.46 62.68
59.01 60.10 61.40 62.68
58.94 60.04 61.36 62.68
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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; 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.

DRAFTING INFORMATION

The principal author of this revenue ruling is David McDonnell of the Office of Associate Chief Counsel (Passthroughs and Special Industries). For further information regarding this revenue ruling, contact Mr. McDonnell at (202) 622- 3040 (not a toll-free call).

Rev. Rul. 2004-100, 2004-44 I.R.B. 718

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