Q. I own an apartment house built in the late ’70s. If I renovate it for a future sale, can I claim a rehabilitation credit for the cost? A.K., Santa Monica, Calif.
A. No. Among other requirements, the 10% rehabilitation credit (the “rehab credit”) is available only for buildings placed in service before 1936. Other special rules apply to certified historic structures and buildings in certain federally designated disaster areas.
Tip: The rehab credit reduces an owner’s basis on a subsequent sale. Therefore, if you plan to sell the property soon, your tax liability on the sale may be increased.
- Small Business Tax Deduction Strategies No matches