historic property tax questions

[Skiddex]

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

 

[Newbian]

Pics of said place?

 

[HappyPuppy]

Don't do it.

 

[lxskllr]

Depending on how the laws work in your area, you may not be able to change windows, add A/C or things like that. In MD, many historic properties are prevented from being upgraded to keep them historically accurate. In any case, you'd be a fool to change out the windows if they're old originals.

 

[Skiddex]

i would use it as my primary residence for a couple years as i have 2 years to complete the project for federal tax credits and it obviously has to go through a ton of pre approval and post approval steps.

i would not be replacing all the windows, actually adding them. in its former life as a nursing home and drug treatment facility, they had removed some but i'd like to bring that old character back. the reason i am asking about the tax deductions is if i really wouldn't benefit a whole lot from them, i'd just screw that whole process and do what i want to it as long as it complies with all the state and neighborhood requirements. then i'd just live there and not rent it out.

 

[compuwiz1]

Originally posted by: Skiddex
i would use it as my primary residence for a couple years as i have 2 years to complete the project for federal tax credits and it obviously has to go through a ton of pre approval and post approval steps.

i would not be replacing all the windows, actually adding them. in its former life as a nursing home and drug treatment facility, they had removed some but i'd like to bring that old character back. the reason i am asking about the tax deductions is if i really wouldn't benefit a whole lot from them, i'd just screw that whole process and do what i want to it as long as it complies with all the state and neighborhood requirements. then i'd just live there and not rent it out.

How many ghosts does it include? Former nursing home and drug treatment facility is guaranteed to be haunted. :shocked:

 

[Skiddex]

lets hope no ghosts. anyone else?