Instructions For Form 3468 - 2009 Page 4

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significance to the district. Certification requests are made
3. The expenditures must be capitalized and depreciated
through your State Historic Preservation Officer on National
using the straight line method.
Park Service (NPS) Form 10-168a, Historic Preservation
4. The expenditures cannot include the costs of acquiring or
Certification Application. The request for certification should be
enlarging any building.
made prior to physical work beginning on the building.
5. If the expenditures are in connection with the
2. The building must be substantially rehabilitated. A
rehabilitation of a certified historic structure or a building in a
building is considered substantially rehabilitated if your qualified
registered historic district, the rehabilitation must be certified by
rehabilitation expenditures during a self-selected 24-month
the Secretary of the Interior as being consistent with the historic
period that ends with or within your tax year are more than the
character of the property or district in which the property is
greater of $5,000 or your adjusted basis in the building and its
located. This requirement does not apply to a building in a
structural components. Figure adjusted basis on the first day of
registered historic district if (a) the building is not a certified
the 24-month period or the first day of your holding period,
historic structure, (b) the Secretary of the Interior certifies that
whichever is later. If you are rehabilitating the building in
the building is not of historic significance to the district, and (c) if
phases under a written architectural plan and specifications that
the certification in (b) occurs after the rehabilitation began, the
were completed before the rehabilitation began, substitute
taxpayer certifies in good faith that he or she was not aware of
“60-month period” for “24-month period.” If the building is in one
that certification requirement at the time the rehabilitation
of the designated counties or parishes in the GO Zone, Rita GO
began.
Zone, or Wilma GO Zone, the “24-month period” and “60-month
6. The expenditures cannot include any costs allocable to
period” is extended by 12 months. However, the rehabilitation
the part of the property that is (or may reasonably expect to be)
must have begun, but not been completed, and the building
tax-exempt use property (as defined in section 168(h) except
placed in service prior to the following dates.
that “50 percent” shall be substituted for “35 percent” in
paragraph (1)(B)(iii)). This exclusion does not apply for line 10d.
States
Date
Line 10
GO Zone
Florida
August 24, 2005
For credit purposes, the expenditures are generally taken into
GO Zone
Louisiana, Mississippi, August 29, 2005
account for the tax year in which the qualified rehabilitated
and Alabama
building is placed in service. However, with certain exceptions,
Rita GO Zone
Louisiana and Texas
September 23, 2005
you may elect to take the expenditures into account for the tax
year in which they were paid (or, for a self-rehabilitated building,
Wilma GO Zone
Florida
October 23, 2005
when capitalized) if (a) the normal rehabilitation period for the
building is at least 2 years, and (b) it is reasonable to expect
3. Depreciation must be allowable with respect to the
that the building will be a qualified rehabilitated building when
building. Depreciation is not allowable if the building is
placed in service. For details, see section 47(d). To make this
permanently retired from service. If the building is damaged, it
election, check the box on line 10a. The credit, as a percent of
is not considered permanently retired from service where the
expenditures paid or incurred during the tax year for any
taxpayer repairs and restores the building and returns it to
qualified rehabilitated building, depends on the type of structure
actual service within a reasonable period of time.
and its location.
For a building damaged in the GO Zone, Rita GO Zone, or
Note. The credit is increased for qualified rehabilitated
Wilma GO Zone, that reasonable period is deemed to be up to
expenditures made on or after the applicable disaster date for
36 months, subject to the following qualifications.
qualified rehabilitated buildings or structures damaged or
The building must have been placed in service prior to
destroyed as a result of the severe storms, tornados, or flooding
the date as given in the table above.
in the Midwestern disaster area. For details on the affected
The relevant 36-month period for that building starts on
counties and the applicable disaster dates in the Midwestern
the same date as given in the table above.
disaster area, see Tables 1 and 2 in Publication 4492-B,
Beginning no later than August 15, 2006, for GO Zone,
Information for Affected Taxpayers in the Midwestern Disaster
Rita GO Zone, or Wilma GO Zone property, the taxpayer must
Areas.
be engaged in the repair or restoration of building, defined as:
a. Ongoing physical repairs,
If the structure is . . . Located . . . . . . . . . . Report on Line . . .
b. Written contracts in place for the repair or restoration to
Other than a certified
In the GO Zone
10e
be completed within the designated 36-month period, or
historic structure
c. Active negotiation of contracts for the repair or restoration
to be completed within the designated 36-month period, but
Other than a certified
In the Midwestern
10f
historic structure
disaster area
only if the contracts are finalized prior to January 1, 2007.
4. The building must have been placed in service before the
Other than a certified
Elsewhere than in the
10g
beginning of rehabilitation. This requirement is met if the
historic structure
GO Zone or Midwestern
building was placed in service by any person at any time before
disaster area
the rehabilitation began.
Certified historic
In the GO Zone
10h
5. For a building other than a certified historic structure (a)
structure
at least 75% of the external walls must be retained with 50% or
more kept in place as external walls, and (b) at least 75% of the
Certified historic
In the Midwestern
10i
existing internal structural framework of the building must be
structure
disaster area
retained in place.
Certified historic
Elsewhere than in the
10j
structure
GO Zone or Midwestern
Qualified Rehabilitation Expenditures
disaster area
To be qualified rehabilitation expenditures, your expenditures
must meet all six of the following requirements.
1. The expenditures must be for (a) nonresidential rental
property, (b) residential rental property (but only if a certified
If you are claiming a credit for a certified historic structure on
historic structure — see Regulations section 1.48-1(h)), or (c)
lines 10h, 10i, or 10j, enter the assigned NPS project number
real property that has a class life of more than 12 years.
on line 10k. If the qualified rehabilitation expenditures are from
2. The expenditures must be incurred in connection with the
an S corporation, partnership, estate, or trust, enter on line 10k
rehabilitation of a qualified rehabilitated building.
the employer identification number of the pass-through entity
-4-

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