rr-98-49.pdf

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# Part I

Section 42 .-- Low-Income Housing Credit

26 CFR 1.42-16: Eligible basis reduced by federal grants.

Rev. Rul. 98-49

Pursuant to $ 1.42-16 (b) (3) of the Income Tax Regulations,
the Internal Revenue Service has determined that payments made to
a building owner on behalf or in respect of a tenant under the
Section 8 Assistance For Single-Room Occupancy Dwellings Program
(42 U. S.C. 11301, 11401-11402) or under the Shelter Plus Care
Program (42 U.S.C. 11301, 11403-11407b) are not grants made with
respect to a building or its operation under § 42 (d) (5) of the
Internal Revenue Code.

## DRAFTING INFORMATION

The principal author of this revenue ruling is Christopher
J. Wilson of the Office of Assistant Chief Counsel (Passthroughs
and Special Industries) . For further information regarding this
revenue ruling contact Mr. Wilson on (202) 622-3040 (not a toll-
free call) .