On May 31, 2018, the Internal Revenue Service (IRS) published an updated version of Form 8609, which is the form owners file with the IRS in order to claim low-income housing tax credits.

The updated version includes an additional minimum set-aside option under line 10c on the form – the “average income” option. Owners may benefit from selecting the new set-aside option, bringing with it the opportunity to offer affordable housing to renters earning up to 80% of area median income. Owners should seek the advice of their accountant prior to filing Form 8609.

While the updated form is available on the IRS website, updated instructions have not yet been released.

McKonly & Asbury is a leader in accounting for affordable housing developments in Pennsylvania. IRS and PHFA regulations require specialized knowledge when accounting for LIHTC developments whether it's performing a 10% Test or Development Cost Certification; or performing development stage audits and preparing partnership tax returns. The M&A Team has the audit and tax expertise and experience needed. For more information, please contact us at affordablehousing@macpas.com.