Amber is in the process this year of renovating the office building (originally 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.
E)None of the above.

Question

Quizplus · Accepted Answer

The disabled access credit allows small businesses to claim a credit for expenses incurred to make their facilities accessible to disabled individuals. The credit is 50% of the expenditures over $250, up to a maximum of $10,250. Therefore, the credit is 50% of ($11,000 - $250) = $5,375, but the maximum credit allowed is $5,000.

Amber Is in the Process This Year of Renovating the Office