Stephen S. Ziegler - Page 12

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          1987.  See id.  We hold that section 469 is not retroactive.5               
               We next address petitioner’s argument that the transitional            
          rule that Congress provided in enacting section 469 into the Code           
          violates his equal protection rights under the Due Process                  
          Clause.  We first describe the transitional rule that Congress              
          provided, TRA 1986 sec. 502, 100 Stat. 2241, when it enacted                
          section 469 into the Code.  That transitional rule provides that            
          any loss sustained by certain investors6 with respect to inter-             

               5See Polone v. Commissioner, T.C. Memo. 2003-339, affd. 479            
          F.3d 1019 (9th Cir. 2007); cf. United States v. Carlton, 512 U.S.           
          26, 33-34 (1994).                                                           
               6The investors qualifying under the transitional rule are              
          so-called qualified investors.  The term “qualified investor” is            
          defined to mean, in general:                                                
               any natural person who holds (directly or through 1 or                 
               more entities) an interest in a qualified low-income                   
               housing project--                                                      
                    (A) if–-                                                          
                         (i) in the case of a project placed in ser-                  
                    vice before August 16, 1986, such person held an                  
                    interest in such project on August 16, 1986, and                  
                    the taxpayer made his initial investment after                    
                    December 31, 1983, or                                             
                         (ii) in the case of a project not described                  
                    in subparagraph (A), such investor held an inter-                 
                    est in such project on December 31, 1986, and                     
                    (B) if such investor is required to make payments                 
               after December 31, 1986, of 50 percent or more of the                  
               total original obligated investment for such interest.                 
          TRA 1986 sec. 502(d), 100 Stat. 2242.                                       

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