Historic buildings are something to be valued and remembered through the future generations. Missouri has gone a step beyond other states in providing for a means of upkeep with these wonderful properties by allowing for owners to apply for tax credits. With a little work, you can get substantial cash breaks.
The National Register of Historic Places will require that you be placed in their list of historic buildings before the state of Missouri will recognize your property as historic. If you aren’t sure on how to do such a thing, most business accountants are able to help you through it. Even if you don’t have a property that was substantial to history, it can be considered as a possible entry to the list if it has some sort of cultural meaning or other close ties to the surrounding community.
Under the tax credit, you will be able to gain up to 25% of the total renovation costs in tax credits. This is a rather substantial amount of money that can turn an unaffordable renovation project into one that can be easily afforded. Even still, the total cost must exceed at least 50% of the owner’s basis in the building- so there is a minimum cost to meet.
When you do get your tax credits, you will be able to sell them to investors if you would like. In doing so, you will build equity that can help finance your project even easier than before. Finding an investor may take a little research and work, but it is a great way to get cash quick for your rehabilitation project.
Don’t view the tax credits as an easy break to do what you would like in a project- you will have to adhere to certain rules in what counts as a renovation and what doesn’t. The state of Missouri is actually fairly lenient in the matter- allowing for even insurance premiums to be counted in the overall costs. You will still have to keep out fences, walkways, and landscaping fees among others- so be sure you know what can be counted and what isn’t.
The tax credits that the state of Missouri offers are able to be stacked up against other tax credits- so you have the benefit in keeping your project running with extra support from the state government. Accountants should be able to find other tax breaks for you if you would like, which is generally a good idea if you aren’t experienced in accounting yourself.
Closing Comments
You should speak with a professional if you are planning to go about taking advantage of the mentioned tax credit. Do keep in mind that laws are subject to change, and that the only good legal advice comes from those with their own practice in good standing.
Learn more about Missouri Historic Tax Credit Projects and Missouri Historic Tax Credit Broker.