Carryover Agreement

A copy of the tax credit obligation for low-income housing, fully executed, as well as a copy of the fully executed transfer allowance form, must be provided when the transfer has been made. (i) the taxable person must dispose of depreciable land or property related to the project. A taxable person has a transfer basis in so far as he has depreciable land or property and it is reasonably expected that the depreciable land or assets will be part of the project for which the transfer allocation is made. This base covers all items that can be properly capitalized with respect to the depreciable land or property. For example, a non-refundable deposit or an amount paid for the acquisition of a call option may be included in the allocation basis for the transfer of depreciable land or property if it can be properly capitalized in the base of depreciable land or real estate of which one is reasonably expected to be part of a project. (1) In general. For example, according to the cash method, a taxable person may not include construction costs in the basis of the transfer allocation, unless the costs have been paid and a taxable person, according to the method of delimitation of the financial year, cannot include construction costs in the basis of the transfer allowance, unless they have been properly run. See point (b)(2)(iv) of this section for a special regime for royalties. A: For most A.A., you must submit a transfer assignment application. This includes a certificate from a lawyer or public accountant that the taxpayer has incurred more than 10% of his or her reasonably expected base in the project.

A: If a project does not enter into service before the end of the calendar year in which the LIHTC allocation was received, the project must be eligible for transfer allocation. There are two federal requirements for a valid transfer allowance. First, the project base must meet certain criteria before the end of the six-month date from the award date or the end of the calendar year in which the award was made. It must exceed 10% of the «reasonably expected» basis of the project by the end of the second calendar year following the award year. . . .

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