Internal Revenue Bulletin: 2008-10
March 10, 2008
Like-kind exchanges of rental property that is used for personal purposes. This procedure provides a safe harbor under which the Service will not challenge whether a property that is rented to others but also occasionally used by the owners for personal purposes qualifies as property that may be exchanged in a like-kind exchange under section 1031 of the Code.
This procedure provides issuers of qualified mortgage bonds (QMBs) and qualified mortgage credit certificates (MCCs) with average area purchase price safe harbors for statistical areas in the United States and with a nationwide average purchase price for residences in the United States for purposes of the QMB rules under section 143 of the Code and the MCC rules under section 25. Rev. Proc. 2007-26 obsoleted in part.
The Small Business and Work Opportunity Act of 2007 added section 1361(g) of the Code, which provides that, in the case of a bank which changes from the reserve method of accounting for bad debts described in section 585 for its first taxable year for which an election under section 1362(a) is in effect, the bank may elect to take into account any adjustments under section 481 by reason of such change for the taxable year immediately preceding such first taxable year. This procedure explains how a bank may make the election under section 1361(g). Generally, the procedure is effective for taxable years beginning after December 31, 2006. Rev. Proc. 2002-9 modified.
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