This notice modifies the 338 approach and the 1374 approach as set forth in Notice 2003–65, 2003–2 C.B. 747, for determining recognized built-in gains or losses under section 382(h), to disallow using the additional first year depreciation deduction under § 168(k), which was amended by “An Act to provide for reconciliation pursuant to titles II and V of the concurrent resolution on the budget for fiscal year 2018,” Pub. L. No. 115–97.

Notice 2018–33, 2018–17 I.R.B. 508, was issued on April 23, 2018. That notice used an incorrect amount for the maximum foreign earned income exclusion to calculate the housing cost amount for 2018. Notice 2018–44 revokes Notice 2018–33 and provides the correct amount of the maximum housing expenses and the base housing amount for 2018. Notice 2018–44 also provides an updated table of adjusted limitations on housing expenses.

Generally, Notice 2018–44 provides for adjustments to the limitation on housing expenses for purposed of section 911 of the Internal Revenue Code. These adjustments are made on the basis of geographic differences in housing costs relative to housing costs in the United States. Further, if the limitation on housing expenses is higher for taxable year 2018 than the adjusted limitations on housing expenses provided in Notice 2017–21, qualified taxpayers may apply the adjusted limitations for taxable year 2018 to their 2017 taxable year.

This Notice advises State and local housing credit agencies that allocate low-income housing tax credits under section 42, and States and other issuers of tax-exempt private activity bonds under section 141, of the population figures to use in calculating: (1) the 2018 calendar year population-based component of the State housing credit ceiling (Credit Ceiling) under section 42(h)(3)(C)(ii); (2) the 2018 calendar year volume cap (Volume Cap) under section 146; and (3) the 2018 volume limit (Volume Limit) under section 142(k)(5).

Notice 2018–46 allows taxpayers to continue to rely on the exception to United States property in §1.956–2T(b)(1)(xi) past its May 7, 2018, sunset date and announces the intention to publish regulations that will provide, similar to the rule in section 956(c)(2)(J), an exception from the definition of U.S. property for an obligation of a United States person to the extent the principal amount of the obligation does not exceed the fair market value of cash and readily marketable securities posted or received as margin or collateral for the obligation in the ordinary course of its business by a United States or foreign person that is a dealer in securities or commodities.

Notice 2018–47 explains how a State or local government amends the nomination of an empowerment zone to provide for a new termination date of December 31, 2017.

This revenue procedure provides the 2019 inflation adjusted amounts for Health Savings Accounts as determined under section 223 of the Internal Revenue Code.