You can purchase shares in limited partnerships that are registered with the IRS and do qualify for the low income housing tax credit. In order to take full advantage of the tax credit, you need to have a pretty good passive income stream as well. Otherwise, your credits are suspended and carried forward indefinitely until the project is sold (minimum project life is 15 years). At that time all your accumulated suspended credits can be used to reduce your capital gains taxes.
No, Section 8 property does not qualify.
You can purchase shares in limited partnerships that are registered with the IRS and do qualify for the low income housing tax credit. In order to take full advantage of the tax credit, you need to have a pretty good passive income stream as well. Otherwise, your credits are suspended and carried forward indefinitely until the project is sold (minimum project life is 15 years). At that time all your accumulated suspended credits can be used to reduce your capital gains taxes.
Thanks