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ests in certain low-income housing projects7 for any taxable year
in a prescribed period8 is not to be treated as a loss from a
7The low-income housing projects qualifying under the tran-
sitional rule are so-called qualified low-income housing pro-
jects. The term “qualified low-income housing project” is
defined to mean:
any project if--
(1) such project meets the requirements of clause
(i), (ii), (iii), or (iv) of section 1250(a)(1)(B) as
of the date placed in service and for each taxable year
thereafter which begins after 1986 and for which a
passive loss may be allowable with respect to such
project,
(2) the operator certifies to the Secretary of the
Treasury or his delegate that such project met the
requirements of paragraph (1) on the date of the enact-
ment of this Act [October 22, 1986] (or, if later, when
placed in service) and annually thereafter,
(3) such project is constructed or acquired pursu-
ant to a binding written contract entered into on or
before August 16, 1986, and
(4) such project is placed in service before
January 1, 1989.
TRA 1986 sec. 502(c), 100 Stat. 2242.
8The period prescribed under the transitional rule is a so-
called relief period. The term “relief period” is defined to
mean:
the period beginning with the taxable year in which the
investor made his initial investment in the qualified
low-income housing project and ending with whichever of
the following is the earliest--
(1) the 6th taxable year after the taxable
year in which the investor made his initial in-
vestment,
(continued...)
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