Revenue Ruling 2005-1

Rev. Rul. 2005-1
Rev. Rul. 2005-1, 2005-2 I.R.B. 258
                       Internal Revenue Service (I.R.S.)
                                 Revenue Ruling
     LOW-INCOME HOUSING CREDIT; SATISFACTORY BOND; “BOND FACTOR” AMOUNTS FOR
                     THE PERIOD JANUARY THROUGH MARCH 2005
                           Published: January 10, 2005

  Low-income housing credit; satisfactory bond; “bond factor” amounts for the period January through March 2005. 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 March 2005.

  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 March 2005.

[Note:  The following TABLE/FORM is too wide to be displayed on one screen.

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————————————–
 Table 1 Rev. Rul. 2005-1 Monthly Bond
————————————–
         Calendar Year Building Placed
————————————–
 Month   1991  1992  1993  1994  1995
 of Disposition
————————————–
Jan ‘05  14.-  27.-  39.-  48.-  56.-
          99    92    03    55    77
Feb ‘05  14.-  27.-  39.-  48.-  56.-
          99    92    03    55    77
Mar ‘05  14.-  27.-  39.-  48.-  56.-
          99    92    03    55    77
————————————–
———————————————————–
 Factor Amounts for Dispositions Expressed As a Percentage
  of Total Credits
———————————————————–
 in Service or, if Section 42(f)(1) Election Was Made, the
   Succeeding Calendar Year
———————————————————–
 1996  1997  1998  1999  2000  2001  2002  2003  2004  2005
———————————————————–
 56.-  56.-  57.-  57.-  58.-  58.-  59.-  61.-  62.-  62.-
  71    86    15    52    00    83    92    22    49    68
 56.-  56.-  57.-  57.-  57.-  58.-  59.-  61.-  62.-  62.-
  59    74    04    41    89    72    80    09    33    68
 56.-  56.-  56.-  57.-  57.-  58.-  59.-  60.-  62.-  62.-
  47    63    93    30    79    61    69    97    19    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; Rev. Rul. 2003-117, 2003-2 C.B. 1051; and Rev. Rul. 2004-100, 2004-44 I.R.B. 718.

  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. 2005-1, 2005-2 I.R.B. 258

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March 30th, 2005 |