Stephen S. Ziegler - Page 13

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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                     
                    (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               
               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-                   

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