Low income housing credit

[Gretel]

OK, I am a dummy on this subject, started to do internet search to just grasp when to whom this credit applies and was overwhelmed. Now I hope that someone with experience can confirm if the following is correct:

The low income housing credit applies to the builder only under certain circumstances and is not available to a buyer of such property. The buyer has to comply with the rules but no credit is available to him.

[Burke]

If the "buyer" (TP) bought shares in a limited partnership for low-income housing, a portion of the credit can pass through to him via the K-1, subject to income limitations. It was one of the only ones that survived the 1986 passive income loss rules passed by Congress.

[Gretel]

Thanks, Burke. I actually had a client who had a limited partnership interest and got this credit. Seems like it was a period when credits were allowed but this period is long gone now. If I understand correctly, if my taxpayer bought the apartment complex from previous owner there is no such thing as a credit?

[Burke]

I do not believe it can be passed thru upon sale, but cannot swear to it. I will try to research what I have. The LIHC is still around for some people where the properties have not been sold, and they have not recovered their basis.