Get the free Transfer LIHC Low-Income Housing Credit Statement

This document serves as a notification to the Massachusetts Department of Revenue about the transfer of the low-income housing credit, including details regarding the transferor, transferee, and project

How to fill out transfer lihc low-income housing

How to fill out Transfer LIHC Low-Income Housing Credit Statement

1. Begin by obtaining the Transfer LIHC Low-Income Housing Credit Statement form from the appropriate housing authority.
2. Fill in the name of the property owner at the top of the form.
3. Provide the address of the low-income housing project to which the credits apply.
4. Enter the property's identification number, if applicable.
5. Specify the type of transaction (e.g., sale, transfer, etc.) occurring.
6. Fill in the details of the transferor (current owner) including their name, address, and contact information.
7. Include the details of the transferee (new owner) with the same required information.
8. List the percentage of credit being transferred.
9. Sign and date the form, and ensure all necessary documentation is attached.
10. Submit the completed form to the appropriate housing authority before the deadline.

Who needs Transfer LIHC Low-Income Housing Credit Statement?

1. Developers or owners of low-income housing projects looking to transfer their Low-Income Housing Tax Credits.
2. Investors in low-income housing projects who are acquiring tax credits through property transfers.
3. Non-profit organizations involved in low-income housing initiatives may also require this statement for tax credit transfers.

People Also Ask about

What is the section 42 of the low-income housing tax credit?

2085 (1986 Act) created the low-income housing credit under § 42 of the Code. Section 42(a) provides that the amount of the low-income housing credit for any taxable year in the credit period is an amount equal to the applicable percentage of the qualified basis of each qualified low-income building.

Who does the low income housing tax credit give federal income taxes to?

The LIHTC gives investors a dollar-for-dollar reduction in their federal tax liability in exchange for providing financing to develop affordable rental housing. Investors' equity contribution subsidizes low-income housing development, thus allowing some units to rent at below-market rates.

What is the form 8586 for low-income housing credit?

Use Form 8586 to claim the low-income housing credit. This general business credit is allowed for each new qualified low-income building placed in service after 1986. Generally, it is taken over a 10-year credit period.

What is the form 3521 for low-income housing credit?

What is form 3521? The document is the California Form 3521 for the Low-Income Housing Credit for the taxable year 2022. It outlines the process for claiming available credits, including calculations for current year credits, pass-through credits from affiliated entities, and carryover computations.

What is the 10 percent test for LIHTC?

To pass the 10% Test, a development must incur at least 10% of the costs that fall under the definition of reasonably expected basis (REB) by the date noted in their state's tax credit allocation guidelines. The failure to satisfy the 10% Test can result in a development forfeiting its credits.

What is the 95/5 test?

Purpose of 95/5 test is to show that a bond issue qualifies as a tax-exempt bond issue – the interest income earned by the holders of the bonds will be excluded from income for federal income tax purposes. The Test is that Qualified Costs of a project must equal or exceed 95% of the Net Bond Proceeds.

What is a qualified allocation plan for low income housing tax credit?

The federal Low Income Housing Tax Credit program requires each state agency that allocates tax credits, generally called a housing finance agency, to have a Qualified Allocation Plan (QAP). The QAP sets out the state's eligibility priorities and criteria for awarding federal tax credits to housing properties.

What is the 50% test for low-income housing tax credit?

The test is to verify that 50% or more of the tax-exempt bond proceeds are used to finance the aggregate basis of any building and the land on which the building is located. Failure to meet the 50% Test is catastrophic to a low-income housing tax credit project.

For pdfFiller’s FAQs

What is Transfer LIHC Low-Income Housing Credit Statement?

The Transfer LIHC Low-Income Housing Credit Statement is a form used to report the transfer of low-income housing credits from one entity to another, which is necessary for compliance with federal tax regulations.

Who is required to file Transfer LIHC Low-Income Housing Credit Statement?

Entities that transfer or acquire low-income housing credits are required to file the Transfer LIHC Low-Income Housing Credit Statement to document the transaction appropriately.

How to fill out Transfer LIHC Low-Income Housing Credit Statement?

To fill out the Transfer LIHC Low-Income Housing Credit Statement, the filer must provide detailed information about the transferor and transferee, including their names, tax identification numbers, and the amount of credits being transferred, along with any other required supporting information.

What is the purpose of Transfer LIHC Low-Income Housing Credit Statement?

The purpose of the Transfer LIHC Low-Income Housing Credit Statement is to ensure transparency in the transfer of low-income housing credits, ensuring that both the transferor and transferee can claim the credits accurately on their tax returns.

What information must be reported on Transfer LIHC Low-Income Housing Credit Statement?

The information that must be reported includes the names and addresses of the transferor and transferee, tax identification numbers, the amount of credits transferred, the property address related to the credits, and details about the transaction date.