Low-Income Housing Limited Partnership

Limited partnership investment in housing complexes occupied by low- and moderate-income tenants paying rent that cannot exceed statutory limits. Such partnerships offer investors annual tax credits over a 10-year period that total approximately 130% to 150% of the amount invested. Due to the restricted rents as required under the tax law, anticipated cash flow during the holding period is minimal. Properties can be sold after a 15-year holding period, which may return some or all of the original investment. The primary investment motivation for limited partners is a predictable stream of annual tax benefits. Limited partners use IRS Form 8586 to claim the credit.

Limited Partnership interests in housing that is rented to qualified low-income tenants. These investments generally return a small annual cash distribution, with most of the return coming from tax deductions for interest and depreciation and/or tax credits.