July 16, 2024: So You Want to Be a LIHTC Developer: Accounting Issues As Year 15 Approaches

Year 15 marks the conclusion of the initial compliance period for a low-income housing tax credit (LIHTC) property, a milestone that brings tax complexities for the investor and the developer. In the latest installment of Novogradac’s Tax Credit Tuesday podcast series, “So You Want to Be a LIHTC Developer,” Michael Novogradac, CPA, and Kevin Wilson, CPA, discuss accounting issues around Year 15. First, they discuss the ways investors and developers report LIHTC transactions on their generally accepted accounting principles (GAAP) statements, discussing the differences between approaches such as the equity method, proportional amortization and consolidations. They also discuss issues facing investors and developers such as impairment, exit taxes and resyndications.
Summaries of each topic:
1. Introduction (0:12-3:24)
2. Guest Introduction and Services (3:25-6:32)
3. Ways Investors Report LIHTC on GAAP Statements (6:33-19:50)
4. Ways Developers Report LIHTC on GAAP Statements (19:51-21:23)
5. Investor Issues (21:24-35:26)
6. Developer Issues (35:27-45:05)
7. Additional Resources and Wrap-Up (45:06-47:36)
8. Off-Mike Section (47:37-49:41)
Find podcast show notes and more Tax Credit Tuesday episodes at www.novoco.com/podcast.