Novogradac makes tax credits simple. We offer easy-to-follow overviews of government programs and incentives, such as the low-income housing tax credit, new markets tax credit, historic rehabilitation tax credit and renewable energy tax credits. We also share expert insights on tax credit policies and legislative updates. Our videos offer something for everyone, whether you’re an industry newcomer or veteran.
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About Novogradac Novogradac is a national certified public accounting and consulting firm with more than 25 offices nationwide. Our clients represent a broad range of industries, with a major emphasis in the real estate sector. We provide publicly and privately held national enterprises with a full spectrum of audit, tax, valuation, expert witness and litigation support, proper
No matter what they need to make this easier to do and hurry up because u cant file taxes till u take care of registration of credits so this is keeping people from filing on time
During high inflation, incomes do not rise at the same percentage. Inflation actually deflates income, yet HUD automatically inflates AMIs to match inflation. These formulas are manipulated to benefit investors and developers' profits; they are not serving the low-income tenants this program is meant to serve.
10% increases annually COMPOUND to DOUBLING rent within seven years. Seniors on Social Security cannot keep up with that. LIHTC is supposed to be affordable for low-income persons, but they can be priced out of their homes just as quickly as market-rate renters. This rent increase allowance is still too high. What's worse, with LIHTC is that rents are attached to units, not incomes (after initial qualification). Should income deflate due to inflation, tenant has to go to the back of the more affordable unit wait list that could be years long, subject to unaffordable rent increases on their current unit in the interim. PLEASE WORK TO FIX THIS.
This video is just an advertisement for the Novogradac training series. It doesn't actually present any information other the general topics of what they cover in their trainings. If you're already planning on subscribing to the training, you can save yourself 50 minutes and not watch this podcast. It's just them talking about the topics of the training and irrelevant things like how many people they've interviewed, etc. It's entirely an advertisement for their webinars, live workshops, on-demand trainings, property compliance and community development certificates, and video shorts. They don't talk about anything other then those words over and over again.
If my partnership (LLC) has excess commercial clean vehicle tax credits, should I be able to 1. Report them on form 3800 general business credits (and carry forward for up to 20 years). 2. Potentially sell (transfer) these credits to other entities that can use them in exchange for cash? We are not tax-exempt and so can’t do elective pay, but I’m wondering if they’re even able to be carried forward or if I would need to use the full credit in the year it was earned. As a pass-through entity I’m not sure if those credits can be banked for future use (let alone transferred to others). Car rental business that’s set up as a multi-member LLC and buys new electric vehicles (Section 45W credit).
The developer/owner DOES get to keep the rents being paid by the tenants. Section 8 vouchers ARE allowed with the low-income housing tax credit incentive.
@@NovogradacCPAs-- This helps Slum Lords. This is why I'm reporting my apartment management for claiming and keeping my Section 8 voucher, and been paying full rent. Scammers.
@@sauce816 Among the requirements for LIHTC property owners to keep the tax credits they're claiming over a 15-year compliance period is maintaining the property's physical condition. New LIHTC properties are supposed to be indistinguishable in quality from market-rate properties in their area. The rent a Section 8 voucher holder pays is based on their adjusted household income. The voucher/subsidy pays the difference between that and a higher payment standard for a unit that size in the area.
For the Self Certification form 8996 does this need to happen if you have not yet received any investment capital at all? Say the fund was created Nov 2022 and currently October 2023 the fund has not started a capital raise would they still need to self certify
Thank you for your question. The short answer is that the fund doesn’t need to file Form 8996 to self-certify as a QOF until the tax year in which it receives its first gain-deferred investment. So if it hasn’t raised any capital thru the end of 2023, it would not need to file a Form 8996 for tax year 2023. However, if it received any gain-deferred investments in Q4 2023, then it would need to file Form 8996. Please contact Jason Watkins with any further questions. You can reach him at Jason.Watkins@novoco.com.
Their ownership interest in the the partnership provides them ownership in the project. However, when investors look to exit the partnership around Year 12 (after they've claimed their credits), they leave the buildings and other assets with the developer.
When HUD issues an "inflation-adjusted" AMI and maximum rent report annually, tenants get the maximum rent INCREASE, though their incomes now qualify them for a lesser rent. It's not about income to rent; it's about whether you were initially approved for a certain percentage unit and then you must pay the maximum rent allowed on that % unit forever, regardless of your income qualifications! For me, my income did not increase, but I got a 10% rent increase! 10% annually will DOUBLE rent in seven years!
Why are ALL your videos cutting off in midstream of something important. STOP PLAYING GAMES! YOU DON'T HELP BY TEASING PEOPLE WITH "STARTING" AN EXPLAINATION THAT "CUTS OFF" . WHO WANTS A BUNCH OF INCOMPLETE VIDEOS?
Hi Sharon. Thanks for reaching out. This video (among others) was an excerpt from a multi-hour webinar. The video was embedded in and/or linked to some promotional emails for the full webinar recording (for purchase) as well as linked on the registration page as an example of the presentation style. Since we weren't going to show the entire webinar in RU-vid (our business model is to charge for webinars), we wanted to show a single concept as a demonstration of the instruction style of the for-purchase webinars. The instructor completes one point and is transitioning to another concept when the video fades out and shows the "www.novoco.com/webinars." Our intent is to incentivize people to check out where they can order a copy of the full webinar (or ones like it). However, it appears to have induced a different reaction. Apologies. Nearly all of our instructor intro and excerpt/teaser videos nowadays are hosted only on the webinar registration web page.
I'm on section 8 and CTAC 42 INCOME TAX CREDIT (LIHTC) ADDENDUM I have pegion on the stair way dropping on stairs, I informed landlord alot of times never get clean birds still flying back and forth. Who can I call for help .
What kind of women say shit about someone being something there not that's way i.wont talk to her about her saying I am a child military and I am not getting tried of all her bullahit lie
My project in Jersey City has a total 30 Inestor visa. We currently have 4 investors, still has 26 quota. Can you help me find people to invest in my projects? Thanks Jack
Everywhere I look it's a tenant goes over N dmakes more how about if I lose income and go from 50 to 30% .. Am I because I have to be on a list if a 30% same size comes available.. what if I'm in the middle of living under a lease in a 50% designated unit at the same complex (100% tax credit ) I just get skipped over ..because I'm not at my renewal.. thats abhorrent esp when your on a list for years. Some new person because they arent living here currently gets my apartment at 30% that should go to me. That's what I'm told and I have not been able to find anything even discussing it. Why even have a list.
Hi Ramona. The floor space fraction is calculated by dividing the floor space of all LIHTC qualified units in a building by the floor space of all residential rental units in a building. The target applicable fraction is determined by owners during planning and must be large enough to satisfy the qualified basis on the building's Form 8609 necessary to generate maximum credits. If that applicable fraction, for example, needs to be 80% to generate maximum credits, the lesser of the unit fraction or the floor space fraction must be at least 80%.
Hi Jollet. Novogradac hosts an 11-hour online LIHTC property compliance workshop with an accompanying exam that enables those who pass it to earn their Novogradac Property Compliance Certification (NPCC). You can learn more about the NPCC at training.novoco.com/pages/npcc
What is the motivation for a lender to do this and not benefit from the Tax Credit program? Does a QLICI loan have a higher interest rate? Or some kind of guarantee?
Hi Pamela. From one of our NMTC professionals: The QLICI loans actually have a below market interest rate as a result of the investor equity being part of the source of those funds. The leverage lender that provides the other part of the source funds (per the diagram) is often the project sponsor or is an entity connected to the project sponsor who has an interest in getting the project completed and isn’t necessarily interested in the monetary benefit derived from the leverage loan. The leverage loan can be comprised of various sources of funds (e.g. capital campaign funds, grants, 3rd party loans, etc.) that are the responsibility of the sponsoring organization of the project. If a 3rd party loan is included in leverage loan sources it is generally a market-rate loan that the sponsoring organization will cover rather than the NMTC project borrower.
So if I generally qualify for everything else, but started the year as a full time student from Jan-May at the time I applied for a unit to live in starting in July , and then enrolled as a part time student for the upcoming semester in August, would I qualify due to the change in student enrollment status? I can't find any info on that. It's all just "if you were full time for 5 calendar months and don't meet the excemptions, you're DQ'd!"
Having been a full-time student for any part of 5 calendar months during the year (Jan-May) already taints that year as fare as the full-time student rule goes, even if you graduated and never enrolled again. This is if the household is comprised entirely of full-time students.
Once I knew all of that, I’d start buying houses - old houses in appreciating markets to fix up and sell, nicer houses in stable markets to rent out to great tenants. I would also tell myself to avoid condos, townhouses, and homes in strict HOA neighborhoods or neighborhoods that have high association fees. I want to be in control of my expenses. Excellent vlog
The LIHTC incentive does not require/allow landlords to evict households who are initially income qualified if their income subsequently increases. However, if the household failed to report income during their initial income certification prior to move-in, the landlord will have grounds to evict them.
God bless your heart . Thanks for giving me some peace of mind I recently got a notice on my door from my landlord indicating that my property that I have been living for over 20 years is going to become LIHTC (an other housing program) . And since I pay market rent right now that I will be asked to move because I’m no longer qualified under the new program that they’re in I’m thinking that the people that are sending out these notices are not fully educated as you are
Hi, this topic is still relevant up today. Thanks for explaining the LITHC program thoroughly. My income is over the 140 percent limit, and the lease manager keeps calling to offer me market rate apartments. They usually add my state income, which is always higher than my federal gross income, along with my 457 plan interest that goes into the retirement system. I am still working and do not have access to that money unless I take out a loan and pay it back. The thing is, those income looks good on paper, but it is not my actual income. I can't take money out of my 457 unless it's a loan and pay back. I don't understand why they added this to my income. Anyway, they always call and tell me that they are getting ready to do eviction, and I am the only one who is keeping them from renting their market rate apartment. I wish I had the income to go and buy my own place. Sometimes, I feel like I am burdened to them. At least, that's how they make me feel. Now, I know a little more about the policy, and I feel much at ease.
Why done the landlord or manger explained to the tenant how they are calculate rent base on low income tax credit program and the level of the A.M.I . why I'm asking this because the government help a lot people though cise covid-19 . some landlord and apartments manger see a opportunity still extra money from the tenant by not explained what they received from the government in the tenant name on the lease.
