Historic Properties Rehabilitation Tax Credits

[Sunshine]

So, if I am reading this thread right, our home which is on the NHR, needs the porches and balcony's replaced. But it will cost only about $20,000. our home is worth more than $225,000. so does that mean since its only 20,000. we wouldn't be eligable for the credit??

 

[Arks]

Your project wouldn't meet the "substantial rehabilitation" test and wouldn't qualify for tax credits. The program is designed for major rehabs, to save historic old buildings.
Also (for others who might read this thread), the tax credits can't be used to rehabilitate a private residence. Must be for a commercial purpose like a B&B. In other words, if you use the credits to rehab an old house to make it a B&B, that's fine. But if you then close the B&B within five years, you'd have to give back some or all of the tax credit money. After five years you can do what you want with the property.

 

[white pine]

So, if I am reading this thread right, our home which is on the NHR, needs the porches and balcony's replaced. But it will cost only about $20,000. our home is worth more than $225,000. so does that mean since its only 20,000. we wouldn't be eligable for the credit??.

Nope. Improvements must exceed the value. Check with your state re. state credits tho.