IRS Provides Guidance on Income Limit Effective Date
Washington, D.C. – The Internal Revenue Service (IRS) will treat the revised fiscal year 2013 Multifamily Tax Subsidy Program (MTSP) income limits released on Dec. 11 as if they were released on Dec. 4 for all Internal Revenue Code (IRC) §42 purposes, according to LIHC Newsletter #50. MTSP property owners must start using the revised 2013 income limits f or all purposes no later than 45 days after the Dec. 4 release date, which is Jan. 18, 2013.
In LIHC Newsletter #50, released today, the IRS says that for buildings placed in service after Dec. 4, 2012 and before Jan. 18, 2013, taxpayers may choose to either rely on the 2012 income limits, or rely on the revised 2013 income limits, whichever provides the greater tax benefit. If a taxpayer placed a building in service between Dec. 5 and Dec. 11 (inclusive), 2012 and relied on income limits released on Dec. 4, the IRS said it will honor the designation, but the revised income limit released on Dec . 11 should be used to calculate the gross rent floor.
Thomas A. Stagg, CPA
Novogradac & Company
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