Internal Revenue Service Office of Chief Counsel Issues Memorandum

On May 22, 2019 the Internal Revenue Service Office of Chief Counsel issued a memorandum on Noncompliance of Common Area for purposes of Internal Revenue Code Section 42, Low-Income Housing Tax Credits. The most interesting thing to note is that if there is a noncompliance in a common area, the entire cost of that common area is used to reduce the eligible basis, not just the portion of the common area that gave rise to the noncompliance. See the full memorandum for more detail: https://lnkd.in/eYaBKge