31st Mar 2009
Taking Advantage Of Missouri Historic Tax Credit Programs
If you own a building that is considered historic in the state of Missouri, you are eligible to gain beneficial tax credits on your annual return. Missouri is often praised for this law, which helps stimulate growth in cities that have a large amount of historic buildings that may be abandoned or otherwise ignored.
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.
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.
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.
In Conclusion
You should speak with a professional if you are planning to go about taking advantage of the mentioned tax credit. Do keep in mind that laws are subject to change, and that the only good legal advice comes from those with their own practice in good standing.
Learn more about Missouri Film tax Credits and Missouri Full Service Tax Credit Syndication.
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