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IRS Lists Bond Factor Amounts For Low-Income Housing Credit.

NOV. 1, 2004

Rev. Rul. 2004-100; 2004-2 C.B. 718

DATED NOV. 1, 2004
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Citations: Rev. Rul. 2004-100; 2004-2 C.B. 718

Rev. Rul. 2004-100

In Rev. Rul. 90-60, 1990-2 C.B. 3, the Internal Revenue Service provided guidance to taxpayers concerning the general methodology used by the Treasury Department in computing the bond factor amounts used in calculating the amount of bond considered satisfactory by the Secretary under § 42(j)(6) of the Internal Revenue Code. It further announced that the Secretary would publish in the Internal Revenue Bulletin a table of bond factor amounts for dispositions occurring during each calendar month.

Rev. Proc. 99-11, 1999-1 C.B. 275, established a collateral program as an alternative to providing a surety bond for taxpayers to avoid or defer recapture of the low-income housing tax credits under § 42(j)(6). Under this program, taxpayers may establish a Treasury Direct Account and pledge certain United States Treasury securities to the Internal Revenue Service as security.

This revenue ruling provides in Table 1 the bond factor amounts for calculating the amount of bond considered satisfactory under § 42(j)(6) or the amount of United States Treasury securities to pledge in a Treasury Direct Account under Rev. Proc. 99-11 for dispositions of qualified low-income buildings or interests therein during the period January through December 2004.

                                Table 1

 

                          Rev. Rul. 2004-100

 

        Monthly Bond Factor Amounts for Dispositions Expressed

 

                   As a Percentage of Total Credits

 

 

               Calendar Year Building Placed in Service

 

              or, if Section 42(f)(1) Election Was Made,

 

                     the Succeeding Calendar Year

 

 

   Month of     1990   1991   1992   1993   1994   1995   1996   1997   1998

 

 Disposition

 

 

 Jan '04        14.71  27.31  38.15  47.40  55.27  54.52  54.00  53.57  53.27

 

 Feb '04        14.71  27.31  38.15  47.40  55.27  54.40  53.89  53.45  53.16

 

 Mar '04        14.71  27.31  38.15  47.40  55.27  54.28  53.77  53.34  53.05

 

 Apr '04        15.55  28.88  40.34  50.12  58.45  57.84  57.87  57.99  58.25

 

 May '04        15.55  28.88  40.34  50.12  58.45  57.71  57.75  57.87  58.13

 

 Jun '04        15.55  28.88  40.34  50.12  58.45  57.59  57.63  57.75  58.02

 

 Jul '04        14.75  27.38  38.24  47.52  55.41  53.96  53.46  53.05  52.78

 

 Aug '04        14.75  27.38  38.24  47.52  55.41  53.85  53.36  52.95  52.68

 

 Sep '04        14.75  27.38  38.24  47.52  55.41  53.75  53.26  52.86  52.59

 

 Oct '04        15.52  28.81  40.24  50.00  58.30  56.99  57.04  57.18  57.46

 

 Nov '04        15.52  28.81  40.24  50.00  58.30  56.88  56.93  57.08  57.37

 

 Dec '04        15.52  28.81  40.24  50.00  58.30  56.77  56.83  56.97  57.27

 

 

                           Table 1 (cont'd)

 

                          Rev. Rul. 2004-100

 

        Monthly Bond Factor Amounts for Dispositions Expressed

 

                   As a Percentage of Total Credits

 

 

               Calendar Year Building Placed in Service

 

              or, if Section 42(f)(1) Election Was Made,

 

                     the Succeeding Calendar Year

 

 

   Month of     1999   2000   2001   2002   2003   2004

 

 Disposition

 

 

 Jan '04        53.01  52.84  52.99  53.40  54.02  54.15

 

 Feb '04        52.91  52.74  52.90  53.30  53.92  54.15

 

 Mar '04        52.81  52.65  52.81  53.22  53.83  54.15

 

 Apr '04        58.56  58.98  59.74  60.79  62.04  62.68

 

 May '04        58.45  58.87  59.64  60.69  61.93  62.68

 

 Jun '04        58.34  58.77  59.55  60.59  61.84  62.68

 

 Jul '04        52.56  52.43  52.61  53.03  53.64  54.15

 

 Aug '04        52.47  52.35  52.54  52.97  53.59  54.15

 

 Sep '04        52.38  52.27  52.47  52.91  53.54  54.15

 

 Oct '04        57.82  58.28  59.08  60.16  61.46  62.68

 

 Nov '04        57.72  58.19  59.01  60.10  61.40  62.68

 

 Dec '04        57.64  58.11  58.94  60.04  61.36  62.68

 

 

For a list of bond factor amounts applicable to dispositions occurring during other calendar years, see: Rev. Rul. 98-3, 1998-1 C.B. 248; Rev. Rul. 2001-2, 2001-1 C.B. 255; Rev. Rul. 2001-53, 2001-2 C.B. 488; Rev. Rul. 2002-72, 2002-2 C.B. 759; and Rev. Rul. 2003-117, 2003-46 I.R.B. 1051.

DRAFTING INFORMATION

The principal author of this revenue ruling is David McDonnell of the Office of Associate Chief Counsel (Passthroughs and Special Industries). For further information regarding this revenue ruling, contact Mr. McDonnell at (202) 622-3040 (not a toll-free call).

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