Published Tuesday, July 7, 2020
Tax relief for low-income housing
credit and bonds, announced IRS
By the A.M. Costa Rica staff
In response to the ongoing covid-19 pandemic, the Internal Revenue Service, IRS, announced the tax relief to issuers, operators, owners, and tenants of qualified low-income housing projects or qualified residential rental projects financed with exempt facility bonds, and state agencies that have jurisdiction over these projects.
According to the IRS, owners and operators now have until December 31, 2020 to satisfy the requirements to meet the deadline.
Between April 1 and December 31, owners of qualified low-income housing projects are not required to perform certain income recertifications or reduce the eligible basis in a building because of the temporary closure of an amenity or common area due to the covid-19 pandemic, and state agencies that have jurisdiction over the projects are not required to conduct compliance-monitoring, IRS said in its statement.
Additionally, between April 1 and December 31, owners and operators of these projects, issuers, and state agencies may treat medical personnel and other essential workers providing services during the covid-19 pandemic as if they were Displaced Individuals, as defined in Rev. Procs. 2014-49 and 2014-50, and therefore, may provide emergency housing for these persons as described in these revenue procedures, IRS representatives said.
The IRS also announced the proposed regulations relating to the compliance-monitoring duties of state agencies for purposes of the low-income housing credit.
"The proposed regulations relax the minimum compliance-monitoring sampling requirement for purposes of physical inspections and low-income certification review, providing flexibility and reduced burdens with respect to the requirements set forth in the final regulations published on February 26, 2019," the IRS said in its statement.
Information about tax relief for those affected by the covid-19 pandemic can be found on the IRS website.
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