ok, so i am looking at this fantastic old property in missouri that is on the national historic property registry and supposedly there is a 20% federal and 25% state tax credit for restoring historic properties. I guess i am just confused as to how the credit works. I know i'd have to use it as an income property (rentals) but i am trying to figure out how much i would get back in the end.
does it mean i can deduct up to 20% of expenses from my federal income taxes or would i get back 20% of costs as a tax credit?
i have been browsing google but am more confused as ever.
also, is the energy efficient tax credit capped at $1500 for all improvements or $1500 for hvac, and $1500 for windows, and $1500 for....
place will need everything, hot water, insulation, hvac, windows...pretty much everything except roof.
thanks ahead of time!
http://www.irs.gov/businesses/...le/0,,id=97599,00.html
edit:
pic as requested
does it mean i can deduct up to 20% of expenses from my federal income taxes or would i get back 20% of costs as a tax credit?
i have been browsing google but am more confused as ever.
also, is the energy efficient tax credit capped at $1500 for all improvements or $1500 for hvac, and $1500 for windows, and $1500 for....
place will need everything, hot water, insulation, hvac, windows...pretty much everything except roof.
thanks ahead of time!
http://www.irs.gov/businesses/...le/0,,id=97599,00.html
edit:
pic as requested