HIGHLIGHTS OF THIS ISSUE

These synopses are intended only as aids to the reader in identifying the subject matter covered. They may not be relied upon as authoritative interpretations.

INCOME TAX

Rev. Rul. 2004–82, page 350. Low-income housing credit. This ruling answers 12 questions about the low-income housing credit provisions under section 42 of the Code.

Rev. Rul. 2004–91, page 357. LIFO; price indexes; department stores. The June 2004 Bureau of Labor Statistics price indexes are accepted for use by department stores employing the retail inventory and last-in, first-out inventory methods for valuing inventories for tax years ended on, or with reference to, June 30, 2004.

T.D. 9141, page 359. Final regulations provide guidance under section 904(d) of the Code, including guidance relating to the exception from passive income for active rents and royalties. The regulations provide guidance under section 904(b) relating to adjustments to the foreign tax credit limitation when a taxpayer has capital gains or losses or qualified dividend income. They provide guidance for individuals who elect under section 904(j) not to apply the foreign tax credit limitation for a particular year. The regulations provide guidance on the allocation of foreign taxes to the separate categories of income under regulations section 1.904–6. Finally, the regulations provide guidance on the exclusion of certain export financing interest from foreign personal holding company income.

REG–124405–03, page 394. Optional 10-year writeoff of certain tax preferences. Proposed regulations under section 59(e) of the Code provide rules governing the time and manner for making and revoking an election to treat certain qualified expenditures, which are otherwise deductible, as amortized over the applicable