Which of the following correctly describes the tax credit for rehabilitation expenditures?
A) The cost of enlarging any existing business building is a qualifying expenditure.
B) The cost of facilities related to the building (e.g., a parking lot) is a qualifying expenditure.
C) No recapture provisions apply.
D) No credit is allowed for the rehabilitation of a non-historic structure.
E) None of the above si correct.

Question

Quizplus · Accepted Answer

The tax credit for rehabilitation expenditures only applies to the rehabilitation of historic structures. Therefore, no credit is allowed for the rehabilitation of a non-historic structure. Additionally, recapture provisions do apply, and the cost of enlarging an existing business building or facilities related to the building (e.g., a parking lot) do not qualify for the credit.

Which of the Following Correctly Describes the Tax Credit for Rehabilitation