IRS Revenue Ruling
1997-25

 Code Sec. 42

<<FULL TEXT>>

Low-income housing credit; satisfactory bond; "bond factor" amounts for
the period April through June 1997. This ruling announces the monthly bond
factor amounts to be used by taxpayers who dispose of qualified low-income
buildings or interests therein during the period April through June 1997.


REV. RUL. 97-25

In Rev. Rul 90-60, 1990-2 C.B. 3, the Internal Revenue Service provided
guidance to taxpayers concerning the general methodology used by the
Treasury Department in computing the bond factor amounts used in
calculating the amount of bond considered satisfactory by the Secretary
under section 42(j)(6) of the Internal Revenue Code. It further announced
that the Secretary would publish in the Internal Revenue Bulletin a table
of "bond factor" amounts for dispositions occurring during each calendar
month.

This revenue ruling provides in Table 1 the bond factor amounts for
calculating the amount of bond considered satisfactory under section
42(j)(6) for dispositions of qualified low-income buildings or interests
therein during the period April through June 1997.

TABLE 1 REV. RUL. 97-25

Monthly Bond Factor Amounts for Dispositions Expressed As a Percentage
of Total Credits

Calendar Year Building Placed in Service
or, if Section 42(f)(1) Election Was
Made, the Succeeding Calendar Year
-------------------------------------------------
Month of
Disposition 1987 1988 1989 1990 1991 1992
----------- ---- ---- ---- ---- ---- ----
Apr '97 79.00 81.35 83.91 86.90 90.40 94.39
May '97 78.77 81.11 83.66 86.64 90.13 94.09
Jun '97 78.55 80.88 83.42 86.40 89.87 93.81


Month of
Disposition 1993 1994 1995 1996 1997
----------- ---- ---- ---- ---- ----
Apr '97 98.50 102.45 106.31 110.36 112.52
May '97 98.18 102.11 105.95 109.98 112.52
Jun '97 97.88 101.79 105.61 109.64 112.52


For a list of bond factor amounts applicable to dispositions occurring
during other calendar years, see the following revenue rulings: Rev. Rul.
90-60, 1990-2 C.B. 3, for dispositions occurring during calendar years
1987, 1988, and 1989; Rev. Rul. 90-88, 1990-2 C.B. 7, for dispositions
occurring during calendar year 1990; Rev. Rul. 91-67, 1991-2 C.B. 13, for
dispositions occurring during calendar year 1991; Rev. Rul. 92-101, 1992-2
C.B. 9, for dispositions occurring during calendar year 1992; Rev. Rul.
93-83, 1993-2 C.B. 6, for dispositions occurring during calendar year
1993; Rev. Rul. 94-71, 1994-2 C.B. 4, for dispositions occurring during
calendar year 1994; Rev. Rul. 95-83, 1995-2 C.B. 8, for dispositions
occurring during calendar year 1995; Rev. Rul. 96-16, 1996-1 C.B. 3, for
dispositions occurring during the period January through March 1996; Rev.
Rul. 96-33, 1996-27 I.R.B. 4, for dispositions occurring during the period
April through June 1996; Rev. Rul. 96-45, 1996-39 I.R.B. 5, for
dispositions occurring during the period July through September 1996; Rev.
Rul. 96-59, 1996-50 I.R.B. 4, for dispositions occurring during the period
October through December 1996; and Rev. Rul. 97-16, 1997-13 I.R.B. 4, for
dispositions occurring during the period January through March 1997.


DRAFTING INFORMATION

The principal author of this revenue ruling is Jack Malgeri of the
Office of Assistant Chief Counsel (Passthroughs and Special Industries).
For further information regarding this revenue ruling, contact Mr. Malgeri
at (202) 622-3040 (not a toll-free call).

<<END RULING>>

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