When would the purchase of an existing building qualify for the acquisition tax credits?
The most common provisions whereby the purchase of an existing building would qualify for acquisition tax credits are (1) when the seller of the property has had constant ownership of the property in question for a period of at least 10 years, OR (2) when the seller of the property is an insured depository institution in default or a receiver or conservator of such an institution. The RTC qualifies as a receiver or conservator of a defaulted depository institution. It is important to note that in order to receive the benefits of the acquisition credit when purchasing a property from the RTC, the developer must file for a waiver of the 10-Year Rule with the IRS. Only after such determination has been made by the IRS that the 10-Year Rule can be waived will the developer be eligible to receive any final documentation from NIFA concerning the acquisition tax credits. The complete provisions under which the purchase of an existing structure may qualify for acquisition tax credits is provid
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