We have a tenant here. They've been living in our project for a while. - They come up for recertification. - New income limits had come out and we say, "Oh, you're up for recertification. Let's up you to the new rent limit." - So we up them, but when we do it, we actually up them too far. - We put them over the limit, but then we quickly say, "Oh no, we put them over the limit." - So in the next month, we're a little concerned. - We put them even further below the limit. - The IRS has said in the 88 23 guide that if you're out of compliance with the rent limit for one month, you lose credits for the entire year. - Which is a pretty strict answer. - They even said you can't just rebate the rent to the tenant to be back in compliance. - You're out of compliance for that full year. - Now, this is a pretty strict answer and I understand why the IRS publishes this answer because they don't want property owners to go out there and rent units at market rate. - And then when the state agency comes out and finds them, they say, "Oh, oh, whoops, we're running a market rate. I didn't know that. Let me go refund all this rent to the tenants and then I'll be back in compliance." - The IRS doesn't like that, so they're taking a very strict stance in the 88 23 guide. - But it's always been my opinion that if you overcharge your rent, you have two options. - You can say, "Oh well, I overcharged. I'm going to do nothing. I'll probably have non-compliance. I'm going to lose credits." - Or you can say,...
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Irs 8823 handbook Form: What You Should Know
Income Limitations for the Low-Income Housing Credit — IRS Mar 27, 2024 — Effective November 1, 1995 (the tax year ending September 30, 1997) a taxpayer with total income under 20,000 (16,000 if married filing jointly) could not claim the low-income housing credit in that year. In 2015, that reduced to 1,000. The IRS issued final regulations in April 2024 reducing that lower income limit for the low-income housing credit to 2,000 for a married/civil union taxpayer with a child under 13.
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