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

NOV. 14, 2003

Rev. Rul. 2003-117; 2003-2 C.B. 1051

DATED NOV. 14, 2003
DOCUMENT ATTRIBUTES
  • Institutional Authors
    Internal Revenue Service
  • Code Sections
  • Subject Area/Tax Topics
  • Jurisdictions
  • Language
    English
  • Tax Analysts Document Number
    Doc 2003-24297 (2 original pages)
  • Tax Analysts Electronic Citation
    2003 TNT 221-8
Citations: Rev. Rul. 2003-117; 2003-2 C.B. 1051

Rev. Rul. 2003-117

[1] 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.

[2] 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.

[3] 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 October through December 2003. Table 1 also provides a summary of the bond factor amounts for dispositions occurring during the period January through September 2003.

                                Table 1

 

                          Rev. Rul. 2003-117

 

        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

 

 Disposition  1989    1990    1991    1992    1993    1994    1995

 

 

 Jan '03      16.23   30.04   41.83   51.93   60.50   60.24   60.12

 

 Feb '03      16.23   30.04   41.83   51.93   60.50   60.09   59.97

 

 Mar '03      16.23   30.04   41.83   51.93   60.50   59.94   59.82

 

 Apr '03      16.23   30.04   41.83   51.93   60.50   59.79   59.68

 

 May '03      16.23   30.04   41.83   51.93   60.50   59.65   59.54

 

 Jun '03      16.23   30.04   41.83   51.93   60.50   59.51   59.40

 

 Jul '03      16.23   30.04   41.83   51.93   60.50   59.37   59.27

 

 Aug '03      16.23   30.04   41.83   51.93   60.50   59.24   59.14

 

 Sep '03      16.23   30.04   41.83   51.93   60.50   59.11   59.01

 

 Oct '03      15.43   28.55   39.76   49.36   57.50   55.51   54.87

 

 Nov '03      15.43   28.55   39.76   49.36   57.50   55.39   54.76

 

 Dec '03      15.43   28.55   39.76   49.36   57.50   55.28   54.64

 

 

                           Table 1 (cont'd)

 

                          Rev. Rul. 2003-117

 

        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

 

 Disposition  1996    1997    1998    1999    2000    2001    2002    2003

 

 

 Jan '03      60.11   60.18   60.39   60.62   60.89   61.55   62.49   62.68

 

 Feb '03      59.96   60.03   60.24   60.47   60.75   61.41   62.33   62.68

 

 Mar '03      59.82   59.89   60.10   60.33   60.62   61.27   62.19   62.68

 

 Apr '03      59.68   59.75   59.96   60.20   60.49   61.15   62.06   62.68

 

 May '03      59.54   59.61   59.83   60.07   60.37   61.04   61.96   62.68

 

 Jun '03      59.40   59.48   59.70   59.95   60.26   60.93   61.86   62.68

 

 Jul '03      59.27   59.35   59.58   59.83   60.15   60.83   61.77   62.68

 

 Aug '03      59.14   59.23   59.45   59.72   60.05   60.74   61.70   62.68

 

 Sep '03      59.02   59.10   59.34   59.60   59.95   60.65   61.63   62.68

 

 Oct '03      54.34   53.89   53.57   53.29   53.09   53.21   53.58   54.15

 

 Nov '03      54.23   53.78   53.47   53.20   53.01   53.15   53.54   54.15

 

 Dec '03      54.12   53.68   53.38   53.12   52.94   53.09   53.50   54.15

 

 

[4] 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; and Rev. Rul. 2002-72, 2002-2 C.B. 759.

DRAFTING INFORMATION

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

DOCUMENT ATTRIBUTES
  • Institutional Authors
    Internal Revenue Service
  • Code Sections
  • Subject Area/Tax Topics
  • Jurisdictions
  • Language
    English
  • Tax Analysts Document Number
    Doc 2003-24297 (2 original pages)
  • Tax Analysts Electronic Citation
    2003 TNT 221-8
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