TCS Cheat Sheet 2026

The 30 highest-yield TCS facts, distilled from real exam questions. Print it, save it as a PDF, or study it here — free, no sign-up.

1. When are annual income recertifications typically due for tax credit properties? → On the household's move-in anniversary date
2. A LIHTC building has one vacant unit with a physical deficiency. Must the owner correct it even though no tenant is affected? → Yes, all LIHTC units including vacant units must meet habitability standards
3. A LIHTC lease must have a minimum term of: → One year
4. A household consists of two adults and one child. For LIHTC income eligibility, who must be included in the household income calculation? → All household members including the child
5. A new resident discloses during the application process that they were previously evicted from a LIHTC property for selling drugs. The owner may: → Deny the application based on the prior LIHTC-related criminal history
6. Alimony received by a household member is counted as income: → In full as anticipated income regardless of source
7. A LIHTC unit fails a physical inspection due to a non-emergency deficiency. The owner typically has how long to correct it? → 30 days
8. Which of the following is a valid reason for a change in household eligibility? → A change in household income
9. The 'placed-in-service date' is a critical milestone under Section 42 because it marks the beginning of which two periods? → The compliance period and the credit period
10. What is one risk of poor tenant file organization? → Compliance issues and penalties
11. How are bedroom sizes assigned for rent limit purposes when a LIHTC unit is intended for persons with disabilities? → The actual bedroom count of the unit determines the limit
12. Under LIHTC rules, how many months of pay stubs are typically required to annualize employment income? → 3 months
13. If a tenant pays all utilities, the utility allowance must be: → Added to the rent when checking gross rent limits
14. What role does a Tax Credit Specialist play in the LIHTC program? → Verify tenant eligibility and maintain compliance.
15. Which federal program provides tax credits to property owners for creating affordable rental housing? → Low-Income Housing Tax Credit (LIHTC)
16. At move-in, the owner should retain income verification documents in the tenant file for at least: → 6 years after the end of the extended use period
17. A household member quits a full-time job before move-in. How should this income be treated? → It is included as imputed income if the person voluntarily reduced income
18. Which type of charge is NOT included in gross rent for LIHTC compliance? → Optional storage unit fees
19. What is the time limit for a tenant to file a Fair Housing complaint with HUD? → 1 year from the discriminatory act
20. If noncompliance occurs during the LIHTC compliance period, what financial consequence may the IRS impose regarding previously claimed credits? → Recapture of previously claimed credits plus interest
21. Which students ARE eligible for LIHTC housing under the full-time student rule exceptions? → Households receiving Job Training Partnership Act assistance
22. If a property owner provides an owner-paid utility allowance to a tenant, the amount provided: → Reduces the maximum allowable contract rent
23. Why is ongoing compliance monitoring critical in LIHTC properties? → To maintain program compliance and eligibility.
24. What must an owner document when a unit is transferred from a non-LIHTC to a LIHTC unit? → A new income certification for the current occupant
25. Which bedroom size is used to determine the income limit for a studio (zero-bedroom) unit? → One-person household income limit
26. Under IRS regulations, what percentage of a project's LIHTC units must be physically inspected by the state agency? → At least the greater of 20% or 5 units
27. Which form is used by applicants to self-certify their income under the LIHTC program? → Tenant Income Certification (TIC)
28. Which income is specifically excluded from LIHTC income calculations? → Lump-sum inheritances
29. During an LIHTC compliance inspection, inspectors typically examine which areas? → The site, building exteriors, building systems, common areas, and unit interiors
30. When a state agency files Form 8823 indicating that a noncompliance event was corrected within the allowable correction period, what is the typical IRS outcome? → No credit recapture pursued since correction occurred timely