(vii) the reasonably expected basis of the taxpayer in the project (country and depreciable basis) at the end of the second calendar year following the calendar year in which the allowance is made; (d) staff transfer requirements – (i) endowments made before July 1. For a wholesale allowance before July 1, an agency may require that the basic certificate be filed or received with the Agency before the end of the calendar year of award or within a reasonable period of time following the end of the calendar year of award. The Agency must review the basis provided for in.c section 2 of this section to accurately complete Form 8610, „Annual Report on Low Income Loans“ and Calendar A (Form 8610), „Carryover Allocation of Low-Income Housing Credit“ for the calendar year of the allowance. If the basis for certification is not taken in a timely manner, if the supporting documents are missing, if they are insufficient or do not actually support certification, the Agency should inform the taxpayer and strive to obtain an appropriate file. If the Agency cannot verify, prior to the filing of Form 8610, whether the policyholder has fulfilled the basic condition of 10% of the deferral allowance made before July 1, the award is not valid and is treated as if it had not been made, and the allocation of deferrals should not be included in Schedule A (Form 8610). (i) the allowance before July 1. If an allowance is made before July 1 of the calendar year, the subject must meet the basic requirement of 10% before the end of this calendar year. If a subject does not meet the basic 10% requirement before the end of the calendar year, the deferral allowance is not valid and is considered to have not been met. In summary, the planning process for the 10 per cent test should begin well before the report`s due date to HFA. If you provide your accountant with a schedule of estimated costs and a reasonably long-awaited basis before the due date, you can perform a quick analysis of the adequacy of the costs incurred, provide you with a list of required backup documents, identify areas of potential problems and allow for timely completion by the deadline. The time for surprises is now and not just before the 10% test is over. A copy of the full tax credit requirement for low-income housing must be provided, as well as a copy of the form of the fully executed carryover allowance when the transfer was made.
A: For most HFA, you must apply for a transfer allowance. This includes a certificate from a lawyer or accountant that the taxpayer has received more than 10% of his or her reasonably expected base in the project.