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.

The National Register of Historic Places will require that you be placed in their list of historic buildings before the state of Missouri will recognize your property as historic. If you aren’t sure on how to do such a thing, most business accountants are able to help you through it. Even if you don’t have a property that was substantial to history, it can be considered as a possible entry to the list if it has some sort of cultural meaning or other close ties to the surrounding community.

Under the tax credit, you will be able to gain up to 25% of the total renovation costs in tax credits. This is a rather substantial amount of money that can turn an unaffordable renovation project into one that can be easily afforded. Even still, the total cost must exceed at least 50% of the owner’s basis in the building- so there is a minimum cost to meet.

When you do get your tax credits, you will be able to sell them to investors if you would like. In doing so, you will build equity that can help finance your project even easier than before. Finding an investor may take a little research and work, but it is a great way to get cash quick for your rehabilitation project.

Don’t view the tax credits as an easy break to do what you would like in a project- you will have to adhere to certain rules in what counts as a renovation and what doesn’t. The state of Missouri is actually fairly lenient in the matter- allowing for even insurance premiums to be counted in the overall costs. You will still have to keep out fences, walkways, and landscaping fees among others- so be sure you know what can be counted and what isn’t.

You may combine these tax credits with others if you would like- meaning you can get a high return in tax credits if you work with an accountant that is keen on getting you the most substantial amount of reimbursement possible. As such, you will likely want to work with an accountant that has an established practice where you live.

Final Thoughts

Your best course of action is to start studying up on your rights given to you by the legislation of Missouri. In studying your options, you will better know how to handle your renovation project with a stable financial backing. You may also wish to gain professional help if you would like.

Learn more about Missouri Historic Tax Credit Broker and Missouri Full Service Tax Credit Syndication.