age 1 of 66
LIHTC SELF STUDY EXAM GUIDE 2025/2026
ACCURATE QUESTIONS AND CORRECT DETAILED
ANSWERS WITH RATIONALES || 100% GUARANTEED
PASS <BRAND NEW VERSION>
What are they? .......Answer.........1. Purchased building
acquisition
2. Minimum rehab expenditure, 42e new building --> $6500
per unit, almost always true
3. More than 10 years since building was last placed in service
4. anti-churning requirement, cannot be placed in service by a
related party. Check this by creating a T chart with the left side
as sell side and rights side as buy side, if all the people on the
,age 2 of 66
right hand side own more than 50% of the left hand side in the
aggregate, then they are related.
Housing tax credit for a year = [_________] ?
.......Answer........."applicable percentage" of "qualified basis" of
each "qualified low-income building"
Qualified basis = [_______] .......Answer........."applicable
fraction" of "eligible basis"
I.e. the portion of the eligible basis attributable to low-income
units = qualified basis
Eligible basis includes [__] and excludes [__] and reduced by
[__] .......Answer.........Includes:
1. cost acquiring
2. cost of rehabilitating
,age 3 of 66
3. cost of constructing building(s)
AKA - if it's depreciable, it's includable in EB
Excludes:
1. cost of land
Reduced by:
1. amount of federal grants financing construction/rehab costs
What is a qualified low-income building? .......Answer.........Any
building which is part of a "qualified low-income housing
project" at all times during the "compliance period."
When does the compliance period for a qualified low-income
housing project begin and end? .......Answer.........Begins: first
taxable year of the 10 year credit period
, age 4 of 66
Ends: 15 taxable years later
Must qualify as a low-income housing project continuously for
that 15 year period
What are the 2 things that a project must be in order to qualify
as a "low-income housing project"? .......Answer.........1. rent
restricted and
2. satisfy one of the minimum set-aside tests of 42g
What are the 3 minimum set-aside tests? .......Answer.........1. 20-
50 test: At least 20% of the residential units in the project must
be both rent-restricted and occupied by tenants whose GI is
50% or less of the area median gross income (AMGI)
LIHTC SELF STUDY EXAM GUIDE 2025/2026
ACCURATE QUESTIONS AND CORRECT DETAILED
ANSWERS WITH RATIONALES || 100% GUARANTEED
PASS <BRAND NEW VERSION>
What are they? .......Answer.........1. Purchased building
acquisition
2. Minimum rehab expenditure, 42e new building --> $6500
per unit, almost always true
3. More than 10 years since building was last placed in service
4. anti-churning requirement, cannot be placed in service by a
related party. Check this by creating a T chart with the left side
as sell side and rights side as buy side, if all the people on the
,age 2 of 66
right hand side own more than 50% of the left hand side in the
aggregate, then they are related.
Housing tax credit for a year = [_________] ?
.......Answer........."applicable percentage" of "qualified basis" of
each "qualified low-income building"
Qualified basis = [_______] .......Answer........."applicable
fraction" of "eligible basis"
I.e. the portion of the eligible basis attributable to low-income
units = qualified basis
Eligible basis includes [__] and excludes [__] and reduced by
[__] .......Answer.........Includes:
1. cost acquiring
2. cost of rehabilitating
,age 3 of 66
3. cost of constructing building(s)
AKA - if it's depreciable, it's includable in EB
Excludes:
1. cost of land
Reduced by:
1. amount of federal grants financing construction/rehab costs
What is a qualified low-income building? .......Answer.........Any
building which is part of a "qualified low-income housing
project" at all times during the "compliance period."
When does the compliance period for a qualified low-income
housing project begin and end? .......Answer.........Begins: first
taxable year of the 10 year credit period
, age 4 of 66
Ends: 15 taxable years later
Must qualify as a low-income housing project continuously for
that 15 year period
What are the 2 things that a project must be in order to qualify
as a "low-income housing project"? .......Answer.........1. rent
restricted and
2. satisfy one of the minimum set-aside tests of 42g
What are the 3 minimum set-aside tests? .......Answer.........1. 20-
50 test: At least 20% of the residential units in the project must
be both rent-restricted and occupied by tenants whose GI is
50% or less of the area median gross income (AMGI)
