Amber is in the process this year of renovating the office building (placed in service in 1976) used by her business. Because of current Federal Regulations that require the structure to be accessible to handicapped individuals, she incurs an additional $11,000 for various features, such as ramps and widened doorways, to make her office building more accessible.The $11,000 incurred will produce a disabled access credit of what amount?
A)$0
B)$5,000
C)$5,125
D)$5,500

Question

Quizplus · Accepted Answer

The disabled access credit is designed to help small businesses cover ADA-related expenditures. It allows for a credit of 50% of the eligible access expenditures in a year over $250, up to a maximum expenditure of $10,250. Therefore, for Amber's $11,000 expense, the first $250 is not counted towards the credit. The credit is then 50% of the remaining $10,750, which is $5,375. However, since the maximum expenditure eligible for the credit is $10,250, the credit is actually 50% of $10,000 ($10,250 - $250), which equals $5,000.

Amber Is in the Process This Year of Renovating the Office