To obtain the rehabilitation expenditures tax credit certain criteria must be satisfied. Which of the following are correct statements about the credit?
I.The amount spend on the rehabilitation must exceed $5,000.
II.The rehabilitation work cannot remove more than 25% of the internal walls and framework.

Question

To obtain the rehabilitation expenditures tax credit certain criteria must be satisfied. Which of the following are correct statements about the credit?
I.The amount spend on the rehabilitation must exceed $5,000.
II.The rehabilitation work cannot remove more than 25% of the internal walls and framework.
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Quizplus · Accepted Answer

The rehabilitation expenditures tax credit typically requires that the rehabilitation work does not remove more than 25% of the internal walls and framework, making statement II correct. Statement I is incorrect as the requirement is usually based on a percentage of the building's adjusted basis, not a fixed dollar amount like $5,000.

To Obtain the Rehabilitation Expenditures Tax Credit Certain Criteria Must