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IRS: Tenant Income Increase Insufficient Cause to Terminate Lease

Thursday, May 7, 2015 - 7:00AM

The Internal Revenue Service (IRS) today released a Chief Counsel Advice memorandum stating that "not renewing a tenant's lease in this situation does not mean that the building is not a qualified low-income buliding under § 42(c)(2). However, unless good cause exists to not renew the lease, an owner is required to continue the tenancy of a tenant in a low-income unit who upon initial occupancy satisifed the applicable income limitation elected under § 42(g)(1)."

Tune in to the May 12 Tax Credit Tuesday podcast to learn more.

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