Treasury Regulations · 26 CFR
§ 1.42-4. Application of not-for-profit rules of section 183 to low-income housing credit activities.
Regulation text, no changes From the eCFR, current as of October 15, 2026. The eCFR is an authoritative but unofficial editorial compilation of the Code of Federal Regulations; the official text is the annual CFR on govinfo. Compare it with this section on ecfr.gov (external site) or the official annual CFR on govinfo (external site).
Regulation under 26 U.S.C. § 42
Cite as 26 CFR § 1.42-4
At a glance
Read from the text and its source citation. Not part of the regulation.
- Status
- In the current eCFR
- Issued
- June 11, 1992 by T.D. 8420
- Issued under
- 26 U.S.C. § 42
- Length
- 175 words · about 1 min to read
- Cross-references
- cites 3 Code sections and 0 regulations; cited by 1
¶(b) Limitation. Notwithstanding paragraph (a) of this section, losses, deductions, or credits attributable to the ownership and operation of a qualified low-income building with respect to which the low-income housing credit under section 42 is allowable may be limited or disallowed under other provisions of the Code or principles of tax law. See, e.g., sections 38(c), 163(d), 465, 469; Knetsch v. United States, 364 U.S. 361 (1960), 1961-1 C.B. 34 (“sham” or “economic substance” analysis); and Frank Lyon Co. v. Commissioner, 435 U.S. 561 (1978), 1978-1 C.B. 46 (“ownership” analysis).
¶(c) Effective date. The rules set forth in paragraphs (a) and (b) of this section are effective with respect to buildings placed in service after December 31, 1986.
[T.D. 8420, 57 FR 24729, June 11, 1992]
Cross-references
Computed from the citations in the text of 26 CFR.
Code sections it cites
- § 42 Low-income housing credit
- § 183 Activities not engaged in for profit
- § 38 General business credit
Cited by 1 other regulation
Amendment history
From the source citation at the end of the section, newest first. T.D. is a Treasury decision; FR is the Federal Register.
- Issued by T.D. 8420 (57 FR 24729)
Where it sits in 26 CFR
- Subchapter A Income tax
- Part 1 Income taxes
- General Business Credits
Nearby sections
- § 1.42-0T Table of contents.
- § 1.42-1 Limitation on low-income housing credit allowed with respect to qualified low-income buildings receiving housing credit allocations from a State or local housing credit agency.
- § 1.42-1T Limitation on low-income housing credit allowed with respect to qualified low-income buildings receiving housing credit allocations from a State or local housing credit agency (temporary).
- § 1.42-3 Treatment of buildings financed with proceeds from a loan under an Affordable Housing Program established pursuant to section 721 of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA).
- § 1.42-4 Application of not-for-profit rules of section 183 to low-income housing credit activities.
- § 1.42-5 Monitoring compliance with low-income housing credit requirements.
- § 1.42-6 Buildings qualifying for carryover allocations.
- § 1.42-8 Election of appropriate percentage month.
- § 1.42-9 For use by the general public.