Historic Preservation Tax Credits The Next Level:

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Historic Preservation Tax CreditsThe Next Level
Master Tenant Syndication
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Single Entity Structure
Investor
GP/Manager
99.9 Tax Credits
0.1 Management Fees, etc.
Owner (LP or LLC)
Development Fee
Developer
Fee Ownership
Property
Lease
Lease
End User
End User
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Single Entity Structure
Cash Flow 1. Fixed Fees 2. Gross Revenues
HTC Investor
GP/Manager
99.9 Tax Credits
0.1 Management Fees, etc.
1. HTC 2. Cash Flow 3. Deprec. w/ Basis Adj.
Owner (LP or LLC)
Development Fee
Developer
Fee Ownership
Property
1. HTC 2. Cash Flow 3. Deprec. w/ Basis Adj.
Lease
Lease
End User
End User
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Master Lease/Credit Pass-ThroughLessee Claims
Credit
Development Fee
Developer
Owner/Lessor (Affiliate of GP/Manager)
Investor
GP/Manager
Master Lease
Funds
0.1
99.9 Tax Credits
Master Lessee (LP or LLC)
Property
Lease
Lease
End User
End User
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Master Lease/Credit Pass-ThroughLessee Claims
Credit
Development Fee
Developer
Owner/Lessor (Affiliate of GP/Manager)
3. Depreciation
HTC Investor
Master Lease
Funds
1. HTC
GP/Manager
99.9 Tax Credits
1. HTC/Imputed Inc.
0.1
Master Lessee (LP or LLC)
3. Book Inc.-HTC Equity Equity in
Owner/Lessor Loan to Owner/Lessor
Beware FIN 46
2. Cash Flow
Property
Open Issues 4. HTC Basis Adj.?
Lease
Lease
End User
End User