Mapping Low-Income Housing Tax Credits - From Cost Certification to the Partnership’s Tax Return

LEARNING AREA: Economic Development, Other
Partner Events
Birch Island Real Estate Consulting




About This Webcast
Seasoned multifamily asset manager and webcaster Vinnie Viola maps the flow of Low-Income housing Tax Credits (LIHTC) on a journey from the partnership’s Cost Certification to the annual tax return in this new 90-minute training. Tax credit professionals: If your job responsibilities include reviewing the credit amount in a LIHTC cost certification, confirming content on Form(s) 8609 or annual credit amount in a partnership’s annual tax return, and you’re looking to build your working knowledge, this webcast is for you. 

This training examines credit flow for a 4% acquisition rehabilitation (4% A/R) project consisting of one high-rise LIHTC building. The webcast begins with an excerpt of a partnership’s cost certification, covering terms such as depreciable costs, eligible basis, applicable fraction, qualified basis, applicable percentage and much more. Then, the presenter provides an overview of Form 8609, Low-Income Housing Credit Allocation and Certification, the much-celebrated form issued by Housing Credit Agencies. The training then dives into the 4% A/R project’s annual tax return, weaving a story from Form 8586, Forms 8609-a, Schedule K and finally to Schedules K-1, in the latter, detailing the investor's 99.99% allocation of annual credits. Vinnie will demonstrate in Excel how seemingly small variations in the first-year credit amount can impact investment yield. The training wraps up with an answer to that million dollar question: What is a tax credit and how does It work?

A basic understanding of the LIHTC program is ideal for this intermediate-level training. 

Disclaimer: Vinnie is an end-user of various tax credit documentation prepared by CPA firms’ tax and audit professionals. As such, he is not qualified to provide tax or legal advice on actual LIHTC partnerships and their legal structures.