Low-Income Housing Tax Credit
The Low-Income Housing Credit (LIHC) was established by the Tax Reform Act of 1986 to replace then-existing incentives, such as accelerated depreciation, for constructing low-income housing. The credit is available because rental income and other returns from investment in low-income housing generally are believed to be otherwise insufficient to cover the cost of developing and maintaining the units built under the program. The credit is now the largest federal program to fund the construction and rehabilitation of housing for low-income households.
Lindgren, Callihan, Van Osdol and Co. Ltd (LCV) has been involved with various low-income housing credit projects since 1993. Services provided to date have included the following:
- Preparation of draft and final forecasted financial statements and related projections of limited partner return.
- Providing Certification of Costs Incurred letter required by the Illinois Housing Development Authority in conjunction with the carryover allocation process.
- Resolution of tax related questions arising from the application of partnership tax laws to differing aspects of various partnership agreements. Various resources inside and outside the firm are available to resolve these questions.
- Assistance with the recording of low-income housing credits in accordance with Generally Accepted Accounting Principles.
- Preparation of partnership tax returns for low-income housing partnerships and the related individual partner returns for both corporate and non-corporate partners.
- Preparation of correspondence to bank regulatory agencies to assist bank limited partners in obtaining prior approval of low income housing investments.
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