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IRS Advises Taxpayers They Will Have 36 Months to Bring Properties Affected by the 2005 Hurricanes Back Into Service

Friday, March 24, 2006 - 7:15AM

In its Notice 2006-38, the Internal Revenue Service advised taxpayers with Internal Revenue Code Section 47 rehabilitation credit property within the areas affected by the 2005 hurricanes that they will have 36 months to bring the properties back into service to avoid recapture on existing properties. The relief applies to rehabilitation projects located in the Gulf Opportunity Zone (GO Zone), the Rita GO Zone, or the Wilma GO Zone affected by hurricanes Katrina, Rita, or Wilma. The notice explained that taxpayers generally have a reasonable period to repair and restore qualified rehabilitated buildings and to return the buildings to actual service without the buildings being considered permanently retired from service. The IRS will deem up to 36 months to be a reasonable period. 

Join Novogradac & Company LLP at the Solutions and Development Opportunities in the Gulf Opportunity Zone seminar to explore opportunities for affordable housing and community development in the Gulf States, provided for in the GO Zone Act of 2005.

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