IRS Revenue Ruling
2001-2

 Code Sec. 42

<<FULL TEXT>>

Low-income housing credit; satisfactory bond; "bond factor" amounts for
the period October through December 2000. This ruling announces the
monthly bond factor amounts to be use by taxpayers who dispose of
qualified low-income buildings or interests therein during the period
October through December 2000. This ruling also announces errors in bond
factor amounts for dispositions of 1987 properties in 1998 and of all
properties in 1999 and January through June 2000, and sets forth summaries
for 1998, 1999, and 2000 that contain the corrected bond factor amounts.


REV. RUL. 2001-2

In Rev. Rul. 90-60, 1990-2 C.B. 4, 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 October through December 2000. Table 1 also
provides a summary of the bond factor amounts for dispositions occurring
during the period January through September 2000. Table 2 provides a
summary of bond factor amounts for dispositions occurring during the
period January through December 1999. Table 3 provides a summary of the
bond factor amounts for dispositions occurring during the period January
through December 1998.

Due to a miscalculation, Rev. Rul. 98-13, 1998-1 C.B. 686; Rev. Rul.
98-31, 1998-1 C.B. 1269; Rev. Rul. 98-45, 1998-2 C.B. 364; and Rev. Rul.
99-1, 1999-1 C.B. 265, are in error regarding the specific bond factor
amounts for buildings placed in service in calendar year 1987 and disposed
of in calendar year 1998. Further, Rev. Rul. 99-18, 1999-1 C.B. 868; Rev.
Rul. 99-24, 1999-1 C.B. 1096; Rev. Rul. 99-38, 1999-2 C.B. 335; Rev. Rul.
99-54, 1999-2 C.B. 675; Rev. Rul. 2000-22, 2000-16 I.R.B. 880; and Rev.
Rul. 2000-31, 2000-26 I.R.B. 1269, are in error regarding the bond factor
amounts for buildings placed in service in calendar years 1987 through
2000 and disposed of in calendar year 1999 and January 2000 through June
2000. The present revenue ruling provides a complete list of the corrected
bond factor amounts.

Under the authority of section 7805(b), taxpayers that posted bonds and
taxpayers that established Treasury Direct Accounts with the Service
pursuant to Rev. Proc. 99-11, 1999-1 C.B. 275, based upon the above
mentioned bond factor amounts may continue to rely on those figures.
Taxpayers that choose to amend their previously posted bonds by using the
corrected bond factor amounts listed in this revenue ruling may do so by
submitting an amended Form 8693, Low-Income Housing Tax Credit Disposition
Bond, to the Internal Revenue Service Center, Philadelphia, PA 19255. The
amended form may be submitted by either the taxpayer or the surety.
Taxpayers that choose to amend the amount of securities pledged in their
previously established Treasury Direct Accounts with the Service by using
the corrected bond factor amounts listed in this revenue ruling should
contact the Bureau of the Public Debt, Division of Customer Service, IRS
Collateral Desk at (304) 480-6158 for further information.

TABLE 1 REV. RUL. 2001-2

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 1993
----------- ---- ---- ---- ---- ---- ---- ----
Jan '00 37.59 51.81 63.64 73.62 75.52 77.92 80.36
Feb '00 37.59 51.81 63.64 73.62 75.31 77.69 80.12
Mar '00 37.59 51.81 63.64 73.62 75.09 77.47 79.88
Apr '00 39.75 54.78 67.30 77.84 79.96 83.31 86.76
May '00 39.75 54.78 67.30 77.84 79.74 83.07 86.51
Jun '00 39.75 54.78 67.30 77.84 79.52 82.84 86.26
Jul '00 39.75 54.78 67.30 77.84 79.31 82.61 86.02
Aug '00 39.75 54.78 67.30 77.84 79.09 82.39 85.78
Sep '00 39.75 54.78 67.30 77.84 78.89 82.17 85.55
Oct '00 39.75 54.78 67.30 77.84 78.68 81.95 85.32
Nov '00 39.75 54.78 67.30 77.84 78.48 81.74 85.10
Dec '00 39.75 54.78 67.30 77.84 78.28 81.54 84.88


Month of
Disposition 1994 1995 1996 1997 1998 1999 2000
----------- ---- ---- ---- ---- ---- ---- ----
Jan '00 82.70 85.05 87.63 90.38 93.52 96.69 97.21
Feb '00 82.44 84.78 87.35 90.08 93.17 96.26 97.21
Mar '00 82.20 84.53 87.07 89.79 92.85 95.88 97.21
Apr '00 90.16 93.64 97.41 101.43 105.89 110.31 112.52
May '00 89.90 93.36 97.12 101.11 105.54 109.93 112.52
Jun '00 89.64 93.09 96.83 100.81 105.22 109.59 112.52
Jul '00 89.38 92.82 96.56 100.53 104.92 109.29 112.52
Aug '00 89.14 92.57 96.29 100.25 104.64 109.02 112.52
Sep '00 88.89 92.32 96.04 99.99 104.37 108.77 112.52
Oct '00 88.66 92.08 95.79 99.74 104.12 108.55 112.52
Nov '00 88.43 91.84 95.55 99.50 103.89 108.35 112.52
Dec '00 88.21 91.61 95.32 99.28 103.66 108.16 112.52


TABLE 2 REV. RUL. 2001-2

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 1993
----------- ---- ---- ---- ---- ---- ---- ----
Jan '99 49.72 60.91 70.15 70.99 72.34 73.94 75.54
Feb '99 49.72 60.91 70.15 70.79 72.13 73.72 75.31
Mar '99 49.72 60.91 70.15 70.60 71.93 73.51 75.09
Apr '99 52.57 64.41 74.17 75.18 77.36 79.85 82.37
May '99 52.57 64.41 74.17 74.97 77.14 79.62 82.13
Jun '99 52.57 64.41 74.17 74.77 76.93 79.39 81.89
Jul '99 52.57 64.41 74.17 74.57 76.72 79.18 81.67
Aug '99 52.57 64.41 74.17 74.37 76.52 78.96 81.44
Sep '99 52.57 64.41 74.17 74.18 76.32 78.75 81.23
Oct '99 52.57 64.41 74.17 73.99 76.12 78.55 81.02
Nov '99 52.57 64.41 74.17 73.80 75.93 78.35 80.81
Dec '99 52.57 64.41 74.17 73.62 75.74 78.15 80.61


Month of
Disposition 1994 1995 1996 1997 1998 1999
----------- ---- ---- ---- ---- ---- ----
Jan '99 76.98 78.38 79.94 81.59 83.60 83.98
Feb '99 76.75 78.13 79.68 81.32 83.28 83.98
Mar '99 76.52 77.90 79.44 81.07 83.00 83.98
Apr '99 84.77 87.15 89.75 92.48 95.53 97.21
May '99 84.52 86.90 89.49 92.20 95.25 97.21
Jun '99 84.28 86.65 89.23 91.95 94.99 97.21
Jul '99 84.04 86.41 88.99 91.71 94.76 97.21
Aug '99 83.81 86.18 88.76 91.48 94.55 97.21
Sep '99 83.59 85.95 88.54 91.27 94.37 97.21
Oct '99 83.37 85.74 88.32 91.07 94.20 97.21
Nov '99 83.17 85.53 88.12 90.88 94.04 97.21
Dec '99 82.96 85.33 87.93 90.71 93.90 97.21


TABLE 3 REV. RUL. 2001-2

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
----------- ---- ---- ---- ---- ---- ----
Jan '98 69.28 79.57 81.84 84.75 88.14 91.97
Feb '98 69.28 79.57 81.59 84.49 87.86 91.67
Mar '98 69.28 79.57 81.35 84.24 87.59 91.37
Apr '98 65.52 75.25 75.96 77.87 80.16 82.79
May '98 65.52 75.25 75.75 77.65 79.93 82.55
Jun '98 65.52 75.25 75.54 77.44 79.71 82.31
Jul '98 65.52 75.25 75.33 77.22 79.49 82.08
Aug '98 65.52 75.25 75.13 77.01 79.27 81.85
Sep '98 65.52 75.25 74.93 76.81 79.06 81.63
Oct '98 65.52 75.25 74.73 76.61 78.85 81.41
Nov '98 65.52 75.25 74.54 76.41 78.65 81.20
Dec '98 65.52 75.25 74.35 76.22 78.45 80.99


Month of
Disposition 1993 1994 1995 1996 1997 1998
----------- ---- ---- ---- ---- ---- ----
Jan '98 95.92 99.75 103.57 107.70 111.85 112.52
Feb '98 95.59 99.39 103.18 107.25 111.28 112.52
Mar '98 95.27 99.04 102.80 106.83 110.79 112.52
Apr '98 85.46 87.97 90.41 93.03 95.60 97.21
May '98 85.20 87.69 90.12 92.74 95.31 97.21
Jun '98 84.95 87.43 89.85 92.46 95.05 97.21
Jul '98 84.70 87.18 89.60 92.21 94.81 97.21
Aug '98 84.47 86.93 89.35 91.97 94.61 97.21
Sep '98 84.23 86.70 89.12 91.74 94.42 97.21
Oct '98 84.01 86.47 88.89 91.53 94.25 97.21
Nov '98 83.79 86.25 88.68 91.33 94.09 97.21
Dec '98 83.58 86.04 88.47 91.14 93.94 97.21


For a list of bond factor amounts applicable to dispositions occurring
during other calendar years, see Rev. Rul. 98-3, 1998-1 C.B. 248.


EFFECT ON OTHER REVENUE RULINGS

Rev. Rul. 98-13, 1998-1 C.B. 686; Rev. Rul. 98-31, 1998-1 C.B. 1269;
Rev. Rul. 98-45, 1998-2 C.B. 364; Rev. Rul. 99-1, 1999-1 C.B. 265; Rev.
Rul. 99-18, 1999-1 C.B. 868; Rev. Rul. 99-24, 1999-1 C.B. 1096; Rev. Rul.
99-38, 1999-36 I.R.B. 335; Rev. Rul. 99-54, 1999-51 I.R.B. 675; Rev. Rul.
2000-22, 2000-16 I.R.B. 880; Rev. Rul. 2000-31, 2000-26 I.R.B. 1269; and
Rev. Rul. 2000-48, 2000-42 I.R.B. 349, are revoked.


DRAFTING INFORMATION

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

<<END RULING>>

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