2016-15 modifies the 20% rule. Under the new rules, the minimum number of low-income units that must undergo physical inspection and certification review is the lesser of:
The IRS has indicated that when a project contains relatively few units, it is concerned that the 20% rule will not produce a sufficiently accurate estimate of the remaining units' overall compliance with habitability or low-income requirements.
Should these rules apply in determining the property and payroll factors, or should the single sales factor apply to the 20% rule? When California changed to a double-weighted sales factor for years beginning on or after Jan.
In determining the sales factor for the 20% rule, should the cost-of-performance rules apply or the market-based-sourcing rules?
Because the cost-of-performance rules were repealed, it would seem that California will require the market-based-sourcing rules in calculating the 20% rule for years beginning on or after Jan.