by Chris Channing
Real estate that is considered to be historical property has the huge benefit of being a method of obtaining tax credit through the state of Missouri. In maintaining your property, you will be eligible to possibly discount thousands of dollars in your expenses paid to turn such properties into well kept pieces of real estate.
Before you can enjoy the excellent tax credits that can be obtained, you will have to gain entry on the list of historic properties that the National Register of Historic Places maintains. Doing so will take some effort, but this step is required in applying for the tax credit. Sometimes even if you don’t have a property that is historic, it may be admitted based on the fact that it is a community landmark, cultural exhibit, or something else that has a value to the community that houses it.
You will be able to gain up to 25% of your renovation costs in tax credit, thanks to the legislation Missouri has put into place. In getting this tax credit, you are able to either save a lot of money to make a renovation possible, or take a renovation job even further to make it that much more presentable. There are, however, some limitations and requirements.
One method of getting money fast is to simply sell your tax credit to investors. This allows you to quickly gain the money you need to either start up the renovation immediately, or keep it safe for emergencies the renovation project may run into. Investors like putting their money in tax credits, so you won’t have to search long.
Even though Missouri is very generous in its notion of giving land owners a break on historical renovations, there are some rules that you will have to follow. One rule states that you can only count certain expenses. It is good to know that something such as a walkway is not considered in the cost, yet something such as an insurance premium is. It is best to leave this act up to the accountant, who can better help you decide your finances and submit them to the government.
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.
Even if you decide to outsource the work of applying for tax credits to professional help, you should remain at least somewhat knowledgeable about the subject so that you can make wise decisions on where to take your renovation project after you get it up and going.