§ 1.42-4 Application of not-for-profit rules of section 183 to low-income housing…
26 C.F.R. §§ 1.42-0 through 1.42-19 — Treasury Regulations under IRC § 42 (Low-Income Housing Credit) · 2026 edition · updated 2026-07-29 · United States
(a) Inapplicability to section 42. In the case of a qualified low-income building with respect to which the low-income housing credit under section 42 is allowable, section 183 does not apply to disallow losses, deductions, or credits attributable to the ownership and operation of the building.
(b) Limitation. Notwithstanding paragraph (a) of this section, losses, deductions, or credits attributable to the ownership and operation of a qualified low-income building with respect to which the low-income housing credit under section 42 is allowable may be limited or disallowed under other provisions of the Code or principles of tax law. See, e.g., sections 38(c), 163(d), 465, 469; Knetsch v. United States, 364 U.S. 361 (1960), 1961-1 C.B. 34 (“sham” or “economic substance” analysis); and Frank Lyon Co. v. Commissioner, 435 U.S. 561 (1978), 1978-1 C.B. 46 (“ownership” analysis).
(c) Effective date. The rules set forth in paragraphs (a) and (b) of this section are effective with respect to buildings placed in service after December 31, 1986.
[T.D. 8420, 57 FR 24729, June 11, 1992]
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Ask AI about this code▸ Contents — 26 C.F.R. §§ 1.42-0 through 1.42-19 — Treasury Regulations under IRC § 42 (Low-Income Housing Credit)
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▸ 26 C.F.R. §§ 1.42-0 through 1.42-19 — Treasury Regulations und…
Overview- § 1.42-0 Table of contents.
- § 1.42-1 Limitation on low-income housing credit allowed with …
- § 1.42-3 Treatment of buildings financed with proceeds from a …
- § 1.42-4 Application of not-for-profit rules of section 183 to…
- § 1.42-5 Monitoring compliance with low-income housing credit …
- § 1.42-6 Buildings qualifying for carryover allocations.
- § 1.42-8 Election of appropriate percentage month.
- § 1.42-9 For use by the general public.
- § 1.42-10 Utility allowances.
- § 1.42-11 Provision of services.
- § 1.42-12 Effective dates and transitional rules.
- § 1.42-13 Rules necessary and appropriate; housing credit agen…
- § 1.42-14 Allocation rules for post-2000 State housing credit …
- § 1.42-15 Available unit rule.
- § 1.42-16 Eligible basis reduced by federal grants.
- § 1.42-17 Qualified allocation plan.
- § 1.42-18 Qualified contracts.
- § 1.42-19 Average income test.
- § 1.42-1T Limitation on low-income housing credit allowed with…