If a taxpayer is required to recapture any tax credit for rehabilitation expenditures,the recapture amount must be added to the adjusted basis of the rehabilitation expenditures.

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According to the tax code, any recapture of the tax credit for rehabilitation expenditures must be added to the adjusted basis of the rehabilitation expenditures. This is done to ensure that the taxpayer does not receive a double benefit from the tax credit.

If a Taxpayer Is Required to Recapture Any Tax Credit