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Rehabbing & House Flipping

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Thomas Fortune
  • Investor
  • Virginia Beach, VA
26
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84
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Historic Tax Credits

Thomas Fortune
  • Investor
  • Virginia Beach, VA
Posted Jul 6 2016, 10:22

Has anyone gone through the process of applying for the tax credits associated with renovating in a historic district? Question I have:

1) How difficult was it to renovate to the historic architectural standards?

2) Did you receive the entire tax credit you expected? (In VA, eligible properties can get 20% state credit and 25% federal credit)

3) How much longer did the renovation take compared to a similar non-historic renovation? 

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James Alderman
  • Investor
  • Plain City, OH
58
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82
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James Alderman
  • Investor
  • Plain City, OH
Replied Apr 12 2022, 16:20

@Jon Fletcher how large was your scope of work for the $10-25k proposals?

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James Rolf
  • Specialist
  • New Orleans, LA
6
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13
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James Rolf
  • Specialist
  • New Orleans, LA
Replied Apr 13 2022, 06:01
Quote from @Jon Fletcher:

Thanks @James Rolf. I have heard people mention that IRS Form 3468 gets filed on your PERSONAL return. But is there a form that needs to be filed with your LLC return?

@Michael Plaks @Ashish Acharya do you have clients for which you've filed the necessary forms for the Historic Tax Credits? 

That depends on how you file taxes with the LLC. My experience has been single members flow through LLCs use the same form I typically defer to CPAs when we get to this point. My specialization is historic materials/buildings and the tax credit application.

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James Rolf
  • Specialist
  • New Orleans, LA
6
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13
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James Rolf
  • Specialist
  • New Orleans, LA
Replied Apr 13 2022, 06:05
Quote from @James Alderman:

@Jon Fletcher how large was your scope of work for the $10-25k proposals?

Yes, I’m very interested to know this as well. Also, how much time did you spend doing it yourself?

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Replied Apr 13 2022, 06:29
Quote from @James Rolf:
Quote from @James Alderman:

@Jon Fletcher how large was your scope of work for the $10-25k proposals?

Yes, I’m very interested to know this as well. Also, how much time did you spend doing it yourself?

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Replied Apr 13 2022, 06:32

@James Alderman @James Rolf the qualified rehabilitation expenditures were just under $500,000. The application is a three-step process that is quite involved but I felt that I could leverage my professional experience in development and tackle it myself. 

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James Rolf
  • Specialist
  • New Orleans, LA
6
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13
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James Rolf
  • Specialist
  • New Orleans, LA
Replied Apr 13 2022, 20:38
Quote from @Jon Fletcher:

@James Alderman @James Rolf the qualified rehabilitation expenditures were just under $500,000. The application is a three-step process that is quite involved but I felt that I could leverage my professional experience in development and tackle it myself. 

That range for a consulting fee for $500k in QREs does seem high. $8k to $11k would have been more reasonable. 

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Rich Hupper
  • Broker / Investor
  • Tewksbury, MA
331
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1,246
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Rich Hupper
  • Broker / Investor
  • Tewksbury, MA
Replied May 11 2022, 07:21

Ill be looking to sell about 100k worth of federal credits if anyone is interested.