(2) Takers. If depreciable land or land, which should be part of a project, after a transfer allocation has been made for a building that can reasonably be expected to be part of the project, but before the end of the calendar year of allocation (for endowments before July 1) or until the end of the six-month period after the date of the date , the allocation will be made (for endowments after June 30), the transfer base of the assignor is governed by the principles of this section and in accordance with Section 42 (d) (7). See also Rev. Mr. Rul. 91-38, 1991-2 C.B. 3 (see 601.601 (d) (2) (ii) (b) of this chapter). In addition, the purchaser is treated as subject to the basic analysis requirement of this section and is therefore responsible for making the necessary certificates and documents available to the Agency. (ii) the name, address and tax identification number of the subject who receives the allowance; A: The 10 percent test is a fraction calculated as follows. The numerator is the taxpayer-appropriate basis for depreciable land and land, which is reasonably expected to be part of the project at the time of the measure, which will be determined by the HFA. The denominator is the taxpayer`s adjusted basis for farm and depreciable land, which is reasonably expected to be part of the project at the end of the second year following the award year. Note that the description of the counter or denominator does not mention the eligible base.
Therefore, each commercial element of the project covers costs in both cases. In addition, any basic thrust resulting from the project, located in a qualified census area or in a difficult development zone, is ignored. In simpler terms, the numerator is the taxpayer`s base in the depreciable land and land that was built at the time of the measure, and the denominator is the expected basis of the taxpayer in the country and the depreciable property after the completion of the construction. A copy of the full tax credit requirement for low-income housing must be provided, as well as a copy of the form of the fully executed carryover allowance when the transfer was made. (ii) agency. The Agency must retain the initial transfer document at point (d) (2) of this section and Appendix A (Form 8610) using the Agency`s Form 8610 for the year for which the award is made. The Agency must also keep a copy of Form 8609 issued to the subject and submit the original with the Agency`s Form 8610, which reflects the year the form was issued. (1) In general. A transfer allowance is an allowance that meets the requirements of Section 42 (h) (1) (E) or (F). If the requirements of paragraph 42 (h) (1) (E) or (F) that must be met before the end of the calendar year are not met, the allowance is not valid and is treated as if it had not been made for that calendar year. If, for example.B.
the allocation of the deferral does not meet a condition of allocation provided for points 1.42 to 6 (d), for example. B if it is not signed or dated by a delegated official of an awarding agency by the end of the calendar year, the award is not valid and is treated as if it had not been made for that calendar year. In summary, the planning process for the 10 per cent test should begin well before the report`s due date to HFA. If you provide your accountant with a schedule of estimated costs and a reasonably long-awaited basis before the due date, you can perform a quick analysis of the adequacy of the costs incurred, provide you with a list of required backup documents, identify areas of potential problems and allow for timely completion by the deadline. The time for surprises is now and not just before the 10% test is over.