CPE: 2.21.2020 Initial Lease Up and Maximizing First-Year Credits Webinar

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Novogradac & Company LLP is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org.

Learning Objectives:

  • Distinguish between the year-end applicable fraction target of the application and Form 8609 and the first-year monthly weighted average applicable fraction in determining full-year and Year 1 credits, respectively
  • Define when a LIHTC unit can first qualify for the first-year weighted average applicable fraction
  • Calculate how excess basis can in generate more credits in Year 1 of the credit period than the weighted average applicable fraction warrants
  • Identify the upside and downside risk in a fluctuating tax credit percentage for bond deals and the advantage and disadvantage of locking the percentage at bond closing vs. using the percentage of the placed-in-service date
  • Locate the minimum set-aside election on the Form 8609, list benefits of electing the 40-60 minimum set-aside and differentiate between the consequences of failing the minimum set-aside in Year 1 vs. during Years 2-15
  • List benefits of electing to treat buildings as part of a multiple building project on Line 8b of Form 8609
  • Select the correct option on carryover documentation to ensure the highest rent limits possible for the building/project
  • Determine the deadline for implementing a new utility allowance within the first year of the credit period depending on the occupancy percentage
  • Identify the length of time required to keep records of the original tenants
  • Identify the reasons a partnership may want to or need to elect to postpone Year 1 of the credit period
  • Identify initial lease-up strategies that can help owners achieve the Year 1 applicable fraction target
  • Determine the proper timing for claiming credits if Forms 8609 haven’t been received prior to when the partnership files its taxes corresponding to Year 1 of the credit period

Level: Intermediate

Prerequisites: A basic understanding of the LIHTC program

Advance preparation required: None

Recommended Field of Study: Taxes

Recommended Credit Hours: 3

In accordance with the standards of the National Registry of CPE Sponsors, CPE credits for this course are based on a 50-minute hour group-Internet based instructional method. Novogradac does NOT offer partial CPE credit for its webinars. Therefore, to earn CPE credits, attendees must be logged in for the duration of the webinar and respond to attendance-monitoring polls that will be administered throughout.

Note: Multiple paid registrants within an organization may choose to watch the webinar on one screen. In situations where small groups view a webinar, for multiple members of the group to claim CPE credit it is not necessary for the individuals in the group to respond to polling questions individually. The person logged into the program may respond to the polling on behalf of the group and the monitoring of active participation of the individuals in the small group will be documented and verified by the small group administrator.

If you are watching the webinar in a group and wish to be eligible to claim CPE credit for multiple members of the group, please print and fill out the Small Group Sign-In Sheet (also provided during the webinar) and submit it to [email protected]

Note also that although recordings of most webinars are available for purchase, unless specifically stated, CPE is NOT available for webinar recordings.