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PLR Says Condo Buyer Can Treat it as Separate New Building for LIHTC

Tuesday, September 2, 2003 - 1:45AM

The purchaser of a rehabilitated condominium building can treat it as a separate new building under §42(e)(1) for purposes of the low-income housing tax credit (LIHTC), according to private letter ruling (PLR) 200335030. In the same ruling, the Internal Revenue Service (IRS) holds that the purchaser “steps into the shoes” of the seller in order to determine that the building is federally subsidized for purposes of claiming the 30 percent present value credit for the building. Click here for a copy of the ruling. 

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