Tax Audit - Low Income Housing Credit Edition Ebook

Chapter 1

• The Participants and Their Roles 1-2
• Tax Benefits Provide a Return on
• State Housing Agencies 1-3
• Overview of the Credit Process:
• IRS Apportions Tax Credits to the Allocation Agencies 1-2
• Equity Investments 1-6
• Developers Apply to the Allocating
• Background 1-1
• Agencies for Credits 1-2

• Scattered Site Project 2-1
• Residential Rental Requirements 2-1
• Mixed-Use Building 2-1
• Minimum Set-Aside Election 2-11
• Minimum Low-Income Set-Aside Requirement 2-2
• Household Income Limitations 2-3
• General Public Use 2-2
• Functionally Related Facilities 2-1
• Audit Techniques 2-12

• Waiver of 10-Year Rule for Certain Federally Assisted Buildings 3-3
• The 10-Year Rule 3-2
• State Housing Credit Agency File 3-23
• Related Party Ownership 3-3
• Prospectus/Offering Memorandum 3-21
• Nonrecourse Notes 3-7
• New Construction Summary 3-12
• Like-Kind Exchange Property 3-3
• Issues Specific to Rehabilitation Expenditures 3-13
• Issues Specific to New Construction Expenditures 3-4
• Issues Specific to Acquisition Expenditures (Purchase of Existing Buildings) 3-2
• Expenditures Specifically Excluded from Eligible Basis 3-4
• Exceptions to the 10-Year Rule 3-2
• Evaluating the Validity of Costs Included in Basis (The Corbin West Tax Court Case) 3-18
• Eligible Basis in "Difficult Development Areas" 3-17
• Eligible Basis and the Compliance Period 3-17
• Eligible Basis Computations for Mixed-Use Buildings 3-15
• Development Agreements 3-21
• Developer Fees Exceeding Economic Feasibility Under IRC section 42(m)(2) 3-9
• Developer Fee Notes 3-6
• Developer Fee 3-4
• Definition 3-1
• Contingent Liabilities 3-9
• Closing Documents and Settlement Sheets 3-19
• Certificate of Occupancy 3-21
• Audit Techniques 3-19
• Allocation of Overhead and Soft Costs to Land 3-11
• AIA (American Institute of Architects) Statements or Construction Vouchers 3-20