Hillside Group, a partnership, purchased a building for $60,000 that was originally placed in service in 1929. The partnership incurs $180,000 rehabilitating the building. The building serves as the partnership's headquarters. The rehabilitation is completed in November 2014. What amount can the Hillside Group claim on their partnership return as a rehabilitation tax credit?
A) $2,000
B) $3,000
C) $6,000
D) $18,000
E) $24,000

Question

Quizplus · Accepted Answer

The rehabilitation tax credit is 10% of the rehabilitation costs for buildings placed in service before 1936. Therefore, 10% of $180,000 is $18,000.

Hillside Group, a Partnership, Purchased a Building for $60,000 That