This document contains proposed regulations that amend the utility allowance regulations concerning the low-income housing credit. The proposed regulations relate to the circumstances in which utility costs paid by a tenant based on actual consumption in a submetered rent-restricted unit are treated as paid by the tenant directly to the utility company. The proposed regulations extend those rules to situations in which a building owner sells to tenants energy that is produced from a renewable source and that is not delivered by a local utility company. The proposed regulations affect owners of low-income housing projects that claim the credit, the tenants in those low-income housing projects, and the State and local housing credit agencies that administer the credit.

Section 911 of the Internal Revenue Code provides that qualified U.S. citizens and residents living abroad can elect to exclude from income certain foreign earned income and foreign housing cost amounts. This notice provides adjustments to the limitation on housing expenses for tax year 2016 for purposes of section 911 of the Code for specific locations, on the basis of geographic differences in housing costs relative to housing costs in the United States.

This document contains final and temporary regulations that provide guidance on the utility allowance regulations under § 1.42–10 concerning the low-income housing credit. The final regulations clarify the circumstances in which utility costs paid by a tenant based on actual consumption in a submetered rent-restricted unit are treated as paid by the tenant directly to the utility company. The temporary regulations extend the principles of these submetering rules to situations in which a building owner sells to tenants energy that is produced from a renewable source and that is not delivered by a local utility company.

This proposed regulation relates to awards of administrative costs and attorneys fees under section 7430 to conform the regulations to the amendments made in the Taxpayer Relief Act of 1997 and the IRS Restructuring and Reform Act of 1998.

Proposed regulations that provide guidance regarding the requirement that a recipient’s basis in certain property acquired from a decedent be consistent with the value of the property as finally determined for federal estate tax purposes. In addition, these proposed regulations provide guidance on the reporting requirements for executors or other persons required to file federal estate tax returns. These proposed regulations affect executors or other persons who file estate tax returns after July 31, 2015. The proposed regulations also affect beneficiaries who acquire certain property from these estates, and subsequent transferees to whom beneficiaries transfer the property in transactions that do not result in the recognition of gain or loss for federal income tax purposes.

Temporary regulations that provide transition rules under section 6035 extending the due date for statements required by that section to be filed or furnished prior to February 29, 2016, until February 29, 2016. These temporary regulations are applicable to executors and other persons who file after July 31, 2015, returns required by section 6018(a) or (b).

This proposed regulation relates to awards of administrative costs and attorneys fees under section 7430 to conform the regulations to the amendments made in the Taxpayer Relief Act of 1997 and the IRS Restructuring and Reform Act of 1998.