Rehabilitation Tax Credits
Does anyone know much about tax credits for rehabbing historic properties? (IRC 47?) As I understand it thusfar, if residential, the property must be "certified" historic and a check with my county or city will tell me whether it's "historic" or not. Then, there are threshholds based on what you spend and the asset's adjusted basis.
Maybe non-residential property has more flexibility but I'm just concerned about residential right now.
Anyone that can point me to further info?
The rehabilitation credit applies to costs you incur for rehabilitation and reconstruction of certain buildings. Rehabilitation includes renovation, restoration, and reconstruction. It does not include enlargement or new construction.
Generally, the percentage of costs you can take as a credit is:10% for buildings placed in service before 1936
20% for certified historic structures See the Instructions for Form 3468 for more information.
Check with your county and city development departments about no/low cost loans for rehabbing historical properties. They may also offer loans even if it is not historical,if it meets certain criteria. Also ask about grants which do not have to be repaid. If your area has a historical commission they could be a great resource.
Thanks guys.
I'll check into those.