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 rehabilitation (historic)tax credit of
A)$15,000.
B)$30,000.
C)$25,000.
D)$50,000.

Question

Quizplus · Accepted Answer

B)The $150,000 expenditure qualifies as it exceeds $5,000 and the cost of the building.Because the building is a certified historic structure and the rehabilitation expenditures are certified as consistent with the character,the credit rate is 20%.

Indie Corporation Purchases a Building for Use in Its Business