The Internal Revenue Service (IRS) recently released private letter rulings (PLRs) concerning historic tax credit (HTC) regulations. In PLR 201228015 and PLR 201228016, the IRS found that separate buildings rehabilitated under a common plan can be considered one project for HTC purposes. Certain stipulations apply to qualify under the PLR including the project must have been completed within a reasonable time of each other, must be located on the same site and the projects must have been intended to be used in an integrated manner.
In another recently released PLR, PLR 2012228019, the IRS granted an extension to the amount of time the taxpayer has to make the election in which the tenant is treated as having purchased the property. In this specific case, the accountant prepared Federal income tax returns for taxpayer and tenant but did not treat the building as placed in service in Year, and did not attach the election to the taxpayer’s return, although the agreement was attached to the lease and other documents. The ruling allows this taxpayer to file an amended tax return with the appropriate election and the election will be considered as timely filed.
These rulings, as with most PLRs, are directed only to the taxpayer that requested it and may not be used or cited as precedent.
These PLRS, in addition to other timely historic rehabilitation topics, will be discussed at NH&RA’s upcoming Historic Preservation Development Council Meeting, which is being held in conjunction with the NH&RA Summer Institute, July 25-28 at the Harbor View Hotel on Martha’s Vineyard.
Click here to read PLR 2012228015.
Click here to read PLR 2012228016.
Click here to read PLR 2012228019.
