Section 163(j) election
Click here to download the list of Section 163(j) elections by partnership. Please note several items related to the column titled “Make 163(j) Election in 2018”:
- Partnerships that have been evaluated and concluded as to whether the Section 163(j) election should be made in 2018 are indicated by a YES or NO
- Partnerships where the investor approval of the election is still pending are indicated by Pending Investor Approval. A complete list that will include these partnerships will be posted no later than January, 25, 2019. Another communication will be sent out when the complete list is available.
- Partnerships that were in year 14 or 15 of their compliance period in 2018 have not been evaluated in detail. NEF recommends that if the partnership was already depreciating the property over 40 years, then it makes the 163(j) election in 2018 (to continue with the 40 year useful life). If the partnership was depreciating the property over 27.5 years, NEF does not have a preference on making the Section 163(j) election for these partnerships.
A few additional reminders:
If the partnership is to elect out of business interest expense limitation (Make 163(j) Election in 2018 = YES), the useful life for the buildings in 2018 must be adjusted to be consistent with the following years:
* 40 years for buildings PIS BEFORE 12/31/17
* 30 years for buildings PIS AFTER 12/31/17
If the partnership is not to elect out of business interest expense limitation (Make 163(j) Election in 2018 = NO), Form 8990 must be completed and included in the tax return that is submitted to NEF.
Please note that it is critical that the Federal Tax Depreciation schedule is included in each partnership’s tax return when it is submitted to NEF. If it is not already included in the tax return, please be sure to submit it as an additional file.
If you need further information or wish to discuss any of the matters set forth herein, please contact Tracey LeGrand, NEF Vice President of Financial Analysis, by email at firstname.lastname@example.org or by phone at (312) 697-6122.
Partnership Representative Designation
NEF expects the General Partner will serve as the Partnership Representative for taxable years beginning in 2018 and thereafter just as it served as the Tax Matters Partner for taxable years beginning prior to 2018. Additionally, an officer of the General Partner or Project Sponsor will serve as the Designated Individual.
Please include the General Partner’s name, address, the Designated Individual’s name and EIN on Form 1065, Schedule B, between line 25 and 26.
For additional information related to the tax matters partner designation, please read the notice here. If you need further information or wish to discuss any of the matters set forth herein, please contact Tracy Townsend, NEF Vice President and Fund Accounting Controller, by email at email@example.com or by phone at (312) 697-8209.
NEF requests that when a partnership is delivering first year tax credits, but the 8609s have not yet been received, that the draft tax return includes the estimated credits to be delivered by the partnership. Additionally, please submit a detailed calculation of the estimated credits to be reported on the tax return along with the draft tax return. NEF will need to review the credit calculation, verify the information provided to NEF’s records and reconcile any differences. To keep the process moving along quickly, please be sure to submit the credit calculation along with the draft tax return.
2018 Year End reporting deadlines
View deadlines here.
CPA portal and Report/document submission
Please utilize National Equity Fund’s (NEF’s) CPA Portal to quickly and securely upload all the reporting documents to be submitted to NEF. The site can also be used to view all required documents for each Partnership and the status of each document as received or still outstanding.
Use of the CPA Portal is the preferred method of submitting all year-end related documents. All documents are date and time stamped and immediately available to NEF staff.
If you are a new/unregistered user, you will need an electronic invitation from NEF to register for the CPA Portal. Please contact Tracey LeGrand to request an invitation.
If you are unable to utilize the CPA Portal, you may submit a PDF document to firstname.lastname@example.org. Please note that during peak times, it may take up to two business days to post an email submission. In the meantime, the Partnership and/or CPA may receive follow-up calls/texts regarding the status of the outstanding documents.
important changes effective for 2018 year end
Financial Analysis Department
Lydia Ridley has transitioned to another role within NEF during 2018 and the Project Accounting department has been renamed the Financial Analysis department.
We’d like to welcome Tracey LeGrand as the head of the new Financial Analysis department. Her team will be the primary individuals responsible for collecting, reviewing and analyzing the audited financial statements and tax returns and supporting documentation required. The Financial Analysis department will be working closely with and receiving support from both the Asset Management department and Tracy Townsend’s team (Fund Accounting department) for the upcoming year-end reporting season.
To streamline the submission and receipt of all year-end reporting documents, NEF prefers you utilize the CPA Portal going forward. Alternatively, files can be submitted via email to email@example.com. See additional notes regarding both methods above. Please do not send the year-end reporting documents to the Asset Managers.