Fall 2013 Issue of Horizons
REAL ESTATE
Accounting Changes Proposed for Affordable Housing Industry by Bryan Keller, CPA
P roposed changes in the accounting for investments in affordable housing tax credits would bring about not only clarity for investors, but potential major increases in investments in low income housing tax credits.
Raymond James of Tax Credit Funds, Inc. led the effort with support from a wide variety of industry stakeholders. The EITF voted to propose new guidance regarding when those investments will qualify for use of the effective yield method of accounting. Currently, investors have had to meet specific and strict requirements in order to use the effective yield method which limited the number of investments that qualified for its use. Accounting rules required all other
On March 14, 2013, the Financial Accounting Standards Board (FASB)
Emerging Issues Task Force (EITF) considered Accounting for Investments in Affordable Housing Tax Credits (Issue 13-B).
page 22 | horizons Fall 2013
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