Source of Funds — 0726 Publ 5884 (PDF)

Information about the source of funds used to acquire a property applies only to the elective payment election and certain tax credit investments. Registrants that will make a transfer election should select “N/A.”

When a tax credit investment property is acquired with restricted grant funds or a forgivable loan, use of those funds to acquire the property may affect how the elective payment election amount is computed. See Elective Pay and Transferability Frequently Asked Questions: Elective Pay, FAQ #41.

For purposes of the elective payment election, “restricted grant funds” refers to a grant for the specific purpose of purchasing, constructing, reconstructing, erecting, or otherwise acquiring a particular investment credit property. In general, grant funds will be restricted if the donor, in writing, imposes a restriction on the use of such funds specifically for the purpose of purchasing, constructing, reconstructing, erecting, or otherwise acquiring a particular investment credit property.