Tax Credit Specialist QUESTIONS WITH
CORRECT ANSWERS
Tax Credit Specialist Questions With
Correct Answers
Internal Revenue Service (IRS) - CORRECT ANSWER-Who is responsible
for most of the regulatory administration of the Low-Income Housing Tax
Credit Programs?
30 years - CORRECT ANSWER-The initial Compliance Period for LIHTC
properties combined with the Extended Use Period must be for a minimum
period of affordability at:
HUD Handbook 4350.3 REV-1 - CORRECT ANSWER-The LIHTC
regulations required that HUD guidance for properly identifying and
calculating income and assets be followed according to:
Required for LIHTC income verifications - CORRECT ANSWER-Use of
HUD's Enterprise Income Verification (EIV) system is:
HERA
ARRA
VAWA - CORRECT ANSWER-The Following legislation includes provisions
for LIHTC:
Three years - CORRECT ANSWER-The first three stages in the life of a
LIHTC property generally occurs within:
A portion of that year's tax credits will be held in reserve for a project -
CORRECT ANSWER-A reservation Letter received at the end of the
Application Stage for LIHTC means that:
Their 10% tests have been met - CORRECT ANSWER-Carryover
Allocations are issued by SHFAs for LIHTC projects when:
-120 days before acquisition to qualify existing tenants and claim credits from
acquisition.
-120 days after acquisition to qualify existing tenants and claim credits from
acquisition.
-240 days surrounding the acquisition date to qualify existing tenants and
claim credits from acquisition. - CORRECT ANSWER-Acquisition/Rehab
projects generally place in service at acquisition and are given:
, The tax credit project's mortgage will be less than that of the conventional
property, providing less debt and greater affordability. - CORRECT
ANSWER-In the project example from appendix C (course manual pg.
525), the equity from the credit sale means that:
HUD's Uniform Physical Condition Standards (UPCS) - CORRECT
ANSWER- When conducting physical inspections for LIHTC, most state
agencies use:
8B and 10C - CORRECT ANSWER-The two most important line items for
management purposes under Part II of IRS Form 8609 are:
Report non-compliance to the IRS by the State Agency - CORRECT
ANSWER- IRS Form 8823 is used to:
for the current year - CORRECT ANSWER-A tax credit disallowance
prevents credits from being claimed by the owner:
Owners receive a second allocation of tax credits for an existing LIHTC
property -
CORRECT ANSWER-LIHTC resyndication means that:
Determination of income under section 8 of the US Housing Act of 1937
(IRS Notice 88-80, Course Manual pg. 447) - CORRECT ANSWER-For
LIHTC, an individual's income is determined in a manner consistent with:
Employment Income
(Figure 5-2, Page 5-8, Course Manual pg. 86) - CORRECT ANSWER-
Income for Foster Children under the age of 18 is counted except for:
All financial assistance in excess of tuition and mandatory fees is included in
annual income, with two exceptions
(Paragraph 5-6E, page 5-11, Course Manual pg. 89) - CORRECT
ANSWER- When section 8 assistance is provided for LIHTC tenant and they
are receiving educational scholarships or grants, then:
26
(Paragraph 5-5B3, page 5-6, Course Manual pg. 84) - CORRECT
ANSWER-Bi- Weekly wages should be converted to annual income by
multiplying by:
A standard of sufficiency as determined by the State Housing Finance Agency
(LIHC Newsletter #54, Course Manual pg. 473) - CORRECT ANSWER-
Income verification for LIHTC must be conducted according to:
Live-in aides
CORRECT ANSWERS
Tax Credit Specialist Questions With
Correct Answers
Internal Revenue Service (IRS) - CORRECT ANSWER-Who is responsible
for most of the regulatory administration of the Low-Income Housing Tax
Credit Programs?
30 years - CORRECT ANSWER-The initial Compliance Period for LIHTC
properties combined with the Extended Use Period must be for a minimum
period of affordability at:
HUD Handbook 4350.3 REV-1 - CORRECT ANSWER-The LIHTC
regulations required that HUD guidance for properly identifying and
calculating income and assets be followed according to:
Required for LIHTC income verifications - CORRECT ANSWER-Use of
HUD's Enterprise Income Verification (EIV) system is:
HERA
ARRA
VAWA - CORRECT ANSWER-The Following legislation includes provisions
for LIHTC:
Three years - CORRECT ANSWER-The first three stages in the life of a
LIHTC property generally occurs within:
A portion of that year's tax credits will be held in reserve for a project -
CORRECT ANSWER-A reservation Letter received at the end of the
Application Stage for LIHTC means that:
Their 10% tests have been met - CORRECT ANSWER-Carryover
Allocations are issued by SHFAs for LIHTC projects when:
-120 days before acquisition to qualify existing tenants and claim credits from
acquisition.
-120 days after acquisition to qualify existing tenants and claim credits from
acquisition.
-240 days surrounding the acquisition date to qualify existing tenants and
claim credits from acquisition. - CORRECT ANSWER-Acquisition/Rehab
projects generally place in service at acquisition and are given:
, The tax credit project's mortgage will be less than that of the conventional
property, providing less debt and greater affordability. - CORRECT
ANSWER-In the project example from appendix C (course manual pg.
525), the equity from the credit sale means that:
HUD's Uniform Physical Condition Standards (UPCS) - CORRECT
ANSWER- When conducting physical inspections for LIHTC, most state
agencies use:
8B and 10C - CORRECT ANSWER-The two most important line items for
management purposes under Part II of IRS Form 8609 are:
Report non-compliance to the IRS by the State Agency - CORRECT
ANSWER- IRS Form 8823 is used to:
for the current year - CORRECT ANSWER-A tax credit disallowance
prevents credits from being claimed by the owner:
Owners receive a second allocation of tax credits for an existing LIHTC
property -
CORRECT ANSWER-LIHTC resyndication means that:
Determination of income under section 8 of the US Housing Act of 1937
(IRS Notice 88-80, Course Manual pg. 447) - CORRECT ANSWER-For
LIHTC, an individual's income is determined in a manner consistent with:
Employment Income
(Figure 5-2, Page 5-8, Course Manual pg. 86) - CORRECT ANSWER-
Income for Foster Children under the age of 18 is counted except for:
All financial assistance in excess of tuition and mandatory fees is included in
annual income, with two exceptions
(Paragraph 5-6E, page 5-11, Course Manual pg. 89) - CORRECT
ANSWER- When section 8 assistance is provided for LIHTC tenant and they
are receiving educational scholarships or grants, then:
26
(Paragraph 5-5B3, page 5-6, Course Manual pg. 84) - CORRECT
ANSWER-Bi- Weekly wages should be converted to annual income by
multiplying by:
A standard of sufficiency as determined by the State Housing Finance Agency
(LIHC Newsletter #54, Course Manual pg. 473) - CORRECT ANSWER-
Income verification for LIHTC must be conducted according to:
Live-in aides
