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Court’s 1993, 1994, and 1995 years, and one-third3 of the credits
claimed for the 1990, 1991, and 1992 years was recaptured,
because the units were not occupied by qualifying tenants.
OPINION
Bentley Court claimed low-income housing credits for its
1990, 1991, and 1992 years, which are now closed for tax
purposes. Respondent disallowed the credit for Bentley Court’s
1993, 1994, and 1995 years. Respondent also determined that
$528,747 of credits claimed for 1990, 1991, and 1992 should be
recaptured in the 1993 year. Bentley Court contends that it was
not entitled to the credit for 1993, 1994, and 1995, or for the
closed years, 1990, 1991, and 1992. Because it was not entitled
to the credit in any of the years, Bentley Court contends that
the credit cannot be recaptured. The sole issue remaining in
dispute is whether Bentley Court must recapture in 1993, the
$528,747 in housing credits claimed for 1990, 1991, and 1992.
3 The Notice of Final Partnership Administrative Adjustment
for 1993 contained the following schedule showing the computation
of the amount of recapture, as follows:
Tax year Amount claimed Rate Amount recaptured
12/31/90 $28,508 .333 $9,493
12/31/91 699,780 .333 233,027
12/31/92 859,543 .333 286,228
Total recapture 528,748
There is no further explanation or dispute about this
computation.
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