Release number 201222011 of 2012-06-01

• Date: 01 June 2012
• Year: 2012
• Record Number: 201222011
• UILC Number: 168.00-00,469.00-00,1038.00-00

Internal Revenue Service Department of the Treasury

Washington, DC 20224

Number: 201222011

Release Date: 6/1/2012

Index Number: 168.00-00, 469.00-00,

1038.00-00

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Third Party Communication: None

Date of Communication: Not Applicable

Person To Contact:

----------------------------, ID No. ---------------

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Telephone Number:

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Refer Reply To:

CC:PSI:02

PLR-128114-11

Date:

December 19, 2011

Legend

X = -------------------------------------------------------------------------------------------------------

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Fund =---------------------------------------------------------------------

Dear ------------------:

This letter responds to a letter dated June 29, 2011, and subsequent

correspondence, submitted on behalf of X, by its authorized representative requesting

rulings concerning and related to the qualifications of Fund as a pooled income fund

under § 642(c)(5) of the Internal Revenue Code. Specifically, you requested the

following rulings:

1. The differences between Fund’s governing instrument and the sample

declaration of trust and instruments for pooled income funds provided in

Revenue Procedure 88-53, 1988-2 C.B. 712, do not cause Fund to fail to be a

pooled income fund under § 642(c)(5);

2. Fund’s cost basis in the building is depreciable over 40 years under the

straight-line method;

3. To the extent that the depreciation deduction for a particular year exceeds the

income set aside by Fund’s trustee for the depreciation reserve, such

depreciation deduction will be allocable to Fund’s income beneficiaries and X

on the basis of the trust income (in excess of the income set aside for the

reserve) allocable to each;

4. Amounts distributed from Fund that are includible in an income beneficiary’s

gross income will be passive income under § 469;

5. Fund will be treated as a split-interest trust under § 4947(a)(2); and