Part I. Rulings and Decisions Under the Internal Revenue Code of 1986

Section 42.—Low-Income Housing Credit

Low-income housing credit; satisfac- tory bond; “bond factor” amounts for the period January through September 2005. This ruling provides the monthly bond factor amounts to be used by taxpayers who dispose of qualified low-income buildings or interests therein during the period January through September 2005.

Rev. Rul. 2005–44

In Rev. Rul. 90–60, 1990–2 C.B. 3, 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 § 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.

Rev. Proc. 99–11, 1999–1 C.B. 275, established a collateral program as an alternative to providing a surety bond for taxpayers to avoid or defer recapture of the low-income housing tax credits under

§ 42(j)(6). Under this program, taxpayers may establish a Treasury Direct Account and pledge certain United States Treasury securities to the Internal Revenue Service as security.

This revenue ruling provides in Table 1 the bond factor amounts for calculating the amount of bond considered satisfactory under § 42(j)(6) or the amount of United States Treasury securities to pledge in a Treasury Direct Account under Rev. Proc. 99–11 for dispositions of qualified low-income buildings or interests therein during the period January through September 2005.

2005–29 I.R.B. 87 July 18, 2005

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; Rev. Rul. 2001–2, 2001–1 C.B. 255; Rev. Rul. 2001–53, 2001–2 C.B. 488; Rev. Rul. 2002–72, 2002–2 C.B. 759; Rev. Rul. 2003–117, 2003–2 C.B. 1051; and Rev. Rul. 2004–100, 2004–44 I.R.B. 718.

DRAFTING INFORMATION

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

Section 168.—Accelerated Cost Recovery System

26 CFR 1.168(k)–1T: Additional first year deprecia- tion deduction (temporary).

Are the rules that allow a taxpayer to elect not to treat qualified Liberty Zone leasehold improvement property placed in service by the taxpayer during the taxable year as 5-year property for purposes of section 168 similar to the rules with respect to the elec

tion not to deduct the additional first year depreciation? See Rev. Proc. 2005-43, page 107.

Section 446.—General Rule for Methods of Accounting

May a taxpayer change its method of accounting under section 446 to make an election not to treat as 5-year property qualified New York Liberty Zone leasehold improvement property placed in service in a taxable year for which the federal tax return was filed before June 29, 2005? See Rev. Proc. 2005-43, page 107.

Section 482.—Allocation of Income and Deductions Among Taxpayers

26 CFR 1.482–1: Allocation of income and deduc- tions among taxpayers.

Obsolete revenue procedures and revenue rulings. This ruling obsoletes Rev. Proc. 64–54, and several subsequent rulings because they only apply to tax years prior to January 1, 1965, and are therefore no longer determinative with respect to future transactions. Rev. Procs. 64–54, 66–33, 69–13, 71–1, and 72–22 and Rev. Ruls. 65–109 and 68–549 obsoleted.

Rev. Rul. 2005–43

Rulings Declared Obsolete

The Internal Revenue Service is continuing its program of reviewing rulings (including revenue rulings and revenue procedures) published in the Internal Revenue Bulletin to identify and publish lists of those rulings that, although not specifically revoked or superseded, are no longer considered determinative.

Rev. Proc. 64–54, 1964–2 C.B. 1008, as extended by Rev. Proc. 66–33, 1966–2 C.B. 1231, pertains to certain unilateral relief in respect of the foreign tax paid on income allocated to a U.S. taxpayer pursuant to section 482.

This revenue ruling publishes a list including Rev. Proc. 64–54 and subsequent rulings relating to Rev. Proc. 64–54 that have been identified under the Internal Revenue Service’s review program as not determinative with respect to future transactions because these rulings apply to taxable years beginning before January 1, 1965. Accordingly, the rulings listed below are hereby declared obsolete.

July 18, 2005 88 2005–29 I.R.B.

Ruling No. C.B. Citation

Rev. Proc. 64–54 1964–2 C.B. 1008

Rev. Rul. 65–109 1965–1 C.B. 222

Rev. Proc. 66–33 1966–2 C.B. 1231

Rev. Rul. 68–549 1968–2 C.B. 202

Rev. Proc. 69–13 1969–1 C.B. 402

Rev. Proc. 71–1 1971–1 C.B. 658

Rev. Proc. 72–22 1972–1 C.B. 747

Section 1400L.—Tax Benefits for New York Liberty Zone

How does a taxpayer elect not to treat qualified New York Liberty Zone leasehold improvement property as 5-year property as provided under section 1400L(c)? See Rev. Proc. 2005-43, page 107.

The Service will continue to review other rulings to ascertain those that are inapplicable to future transactions. Therefore, failure to include any particular ruling in the above list should not be construed as an indication that the ruling necessarily is determinative with respect to future transactions.

DRAFTING INFORMATION

The principal author of this revenue ruling is Thomas A. Vidano of the Office of Associate Chief Counsel (International). For further information regarding this revenue ruling, contact Mr. Vidano at (202) 435–5265 (not a toll-free call).

2005–29 I.R.B. 89 July 18, 2005