Indie Corporation purchases a building for use in its business at a cost of $100,000.The building was built in 1900 and is a certified historic structure.Indie spends $150,000 on qualifying renovations certified as consistent with the buildings character.Indie will earn a total rehabilitation (historic)tax credit of
A)$15,000.
B)$30,000.
C)$25,000.
D)$50,000.

Question

Quizplus · Accepted Answer

The total rehabilitation tax credit for certified historic structures is equal to 20% of the qualified rehabilitation expenditures. In this case, the qualified rehabilitation expenditures are $150,000, which means the tax credit would be $30,000 (20% of $150,000).

Indie Corporation Purchases a Building for Use in Its Business