Taking Advantage Of Missouri Historic Tax Credit Programs
Posted on March 31st, 2009
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.
There are two main numbers that those wishing to renovate their historic properties should remember. First, you will gain up to 25% in tax credit in the overall expense of a renovation project. Even still, some requirements will be present- such as the fact that you should have at least 50% of the basis in the building or property, so as to cover up loopholes in the system.
If you know of a few investors who wouldn’t mind taking your tax credits, you can get a lump sum rather quickly in transferring the tax credit to such investors. This will enable you to better fund your project, and increase the odds of it being finished without financial problems. If you don’t know anyone, look online or go to a local investment agency.
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.
You may combine these tax credits with others if you would like- meaning you can get a high return in tax credits if you work with an accountant that is keen on getting you the most substantial amount of reimbursement possible. As such, you will likely want to work with an accountant that has an established practice where you live.
Final Thoughts
Your best course of action is to start studying up on your rights given to you by the legislation of Missouri. In studying your options, you will better know how to handle your renovation project with a stable financial backing. You may also wish to gain professional help if you would like.
Learn more about Brownfield Tax Credits and Missouri Historic Tax Credit Projects.
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