I'm writing an article on how to apply for the 10% or 20% tax credits for reconstruction of historic buildings. I have the information I need but the National Park Service strongly advises professional assistance in applying. As a short sidebar, I'm trying to get an estimate of how much time that would take. Basically, if a client came to you as a tax professional and asked for your help, could you give a rough estimate or time range? (See website below for details)
I'd like to put any estimates in my article but will NOT use anyone's name without permission.
This is my first time hearing about this credit, but after reading 2 documents, including the FAQ, it seems this credit is less complex than Schedule E itself. It might appear more complex to most people because they're not familiar with it. So if preparing a Schedule E takes 2 hours, this one should take 30 minutes. When a client goes to a tax preparer for help, do they dump all the receipts on the preparer and say "just do it"? Or is the burden of organizing and totaling the receipts on the client? The first way will take way longer than 2 hours, and will obviously cost a lot more.
The most important thing is to know which expenses are allowed. Expenses for new fixtures, carpets, etc don't count. Only restoration costs count. But what if the restoration cost is a depreciable expense. If you totally restore the crumbling copper plumbing with modern efficient plumbing, or the old dilapidated tile countertops with granite countertops is that a restoration cost? And if it is a restoration cost, the change is so great that it will likely be considered a capital expense rather than a repair -- and thus the cost will be depreciated over a number of years (15 for plumbing, 7 for countertops I think). So is the credit allowed all at once?
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