100 STAT. 2242
PUBLIC LAW 99-514—OCT. 22, 1986
housing project and ending with whichever of the following is the earliest— (1) the 6th taxable year after the taxable year in which the investor made his initial investment, (2) the 1st taxable year after the taxable year in which the investor is obligated to make his last investment, or (3) the taxable year preceding the 1st taxable year for which such project ceased to be a qualified low-income housing project. (c) QUALIFIED LOW-INCOME HOUSING PROJECT.—For purposes of this section, the term "qualified low-income housing project" means any project if— (1) such project meets the requirements of clause (i), (ii), (iii), or (iv) of section 1250(a)(1)(B) as of the date placed in service and
- '^' for each taxable year thereafter which begins after 1986 and for
which a passive loss may be allowable with respect to such project, (2) the operator certifies to the Secretary of the Treasury or his delegate that such project met the requirements of paras', graph (1) on the date of the enactment of this Act (or, if later, when placed in service) and annually thereafter, (3) such project is constructed or acquired pursuant to a binding written contract entered into on or before August 16,
- ^ 1986, and
(4) such project is placed in service before January 1, 1989. (d) QUALIFIED INVESTOR.—For purposes of this section— ' (1) IN GENERAL.—The term "qualified investor" means any natural person who holds (directly or through 1 or more entities) an interest in a qualified low-income housing project— (A) i f iif.iiH;t (i) in the case of a project placed in service before August 16, 1986, such person held an interest in such project on August 16, 1986, and the taxpayer made his .f> initial investment after December 31, 1983, or ,dS^I.i (ii) in the case of a project not described in subparagraph (A), such investor held an interest in such project on December 31, 1986, and (B) if such investor is required to make payments after December 31, 1986, of 50 percent or more of the total t original obligated investment for such interest. For purposes of subparagraph (A), a person shall be treated as holding an interest on August 16, 1986, or December 31, 1986, if on such date such person had a binding contract to acquire such interest. (2) TREATMENT OF ESTATES.—The estate of a decedent shall a-^' succeed to the treatment under this section of the decedent but only with respect to the 1st 2 taxable years of such estate ending after the date of the decedent's death, (d) SPECIAL RULES.— (1) WHERE MORE THAN
^
i BUILDING IN PROJECT.—If there is more than 1 building in any project, the determination of when such project is placed in service shall be based on when the 1st building in such project is placed in service. (2) ONLY CASH AND OTHER PROPERTY TAKEN INTO ACCOUNT.—In
determining the amount any person invests in (or is obligated to invest in) any interest, only cash and other property shall be taken into account.
�
