Fillable Schedule Hr - Wisconsin Historic Rehabilitation Credits

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2012 Schedule HR

Page

Required attachments: You must file with Sched ule HR a copy

In addition, you may claim architectural fees and costs incurred

of the final certification of completed work from the National Park

in preparing nomination forms for listing in the National or State

Service. For properties not yet listed in the National Register

of Historic Places, include a copy of the signed letter from the

years before submission of your preservation or rehabilitation

National Park Service certifying that the completed rehabilitation

plan to the Wisconsin Historical Society.

Qualified costs don’t include the costs of acquiring the building

meets the “Secretary of the Interior’s Standards for Rehabilita-

tion.” If you haven’t received the final certification by the time the

itself, or any interest in the building, or any expense incurred

tax return is filed, include a copy of the “Historic Preservation

for the enlargement of an existing building.

Certification Application (Part 2 - Description of Rehabilitation).”

Include a copy of the final certification of completed work to the

d. You must design and carry out the work in accordance with the

first income or franchise tax return filed after receipt of the final

“Secretary of the Interior’s Standards for Rehabilitation.”

certification along with an explanation of the amount and the years

in which the credit was claimed. If the credit is passed through

e. You must complete the preservation or rehabilitation work

from a partnership, LLC treated as a partnership, tax-option (S)

within 2 years (5 years for a project that is initially planned for

corporation, estate, or trust, include a copy of your Schedule 3K-1,

completion in phases).

5K-1, or 2K-1 instead of the final certification.

f. The State Historic Preservation Officer must certify that the

If the credit of a partnership or LLC treated as a partnership is

completed project substantially complies with the previously

allocated as provided in a written agreement, the partnership or

approved plan.

LLC must also attach a copy of the agreement to its partnership

return (Wisconsin Form 3), and each partner or member receiving

g. You can’t claim a credit for rehabilitating a personal residence

the credit must attach a copy of the agreement to the return on

if you acquired the property under an agreement requiring

which they claim the credit.

you to sell or return the property to the previous owner within

5 years.

Part II – State Historic Rehabilitation Credit – Individuals

Line 8a. Check the box to indicate whether you are electing to

Only

claim this credit based on when the rehabilitation work is completed

or when the costs are paid. If you are claiming the credit based

To qualify for the state historic rehabilitation credit, you must meet

on when the costs are paid, enter the total amount of qualified

the following requirements:

preservation costs paid on the project to date.

a. You must own and occupy as your personal residence property

Line 8b. Fill in the amount of qualified rehabilitation costs you are

that is listed, or eligible to be listed, in the National or State

including in the credit computation for the current taxable year,

based on the election you indicated on line 8a. If you are claiming

which is listed in the National or State Register and is cer tified

the credit based on when the rehabilitation work is completed, fill

by the State Historic Preservation Officer as being of histori-

in the total qualified rehabilitation costs for the project. If you are

cal significance to the district. Included are outbuildings that

claiming the credit based on when the costs are paid, only fill in

contribute to the historic significance of the property.

the qualified rehabilitation costs paid during the taxable year.

b. The residence, including outbuildings, can’t be used in a trade

Caution: If your total qualified rehabilitation costs during the 2-year

or business, held for the production of income, or held for sale

or 5-year period beginning with the date on which the physical

or other dis position in the ordinary course of your trade or busi-

rehabilitation work begins aren’t more than $10,000, you don’t

ness.

qualify for this credit.

If you use part of your home for income-producing activities, you

Line 9. Enter 25% of the amount on line 8b, but not more than

may be able to claim the credit for the portion that is your personal

$10,000 ($5,000 if you are married and file a separate return). The

residence. See Wisconsin Tax Bulletin 86 (April 1994), page

maximum credit available for any preservation or rehabilitation

22, which can be found at

project is $10,000 ($5,000 if you are married and file a separate

pdf, for more information.

return).

c. Your qualified preservation costs during the 2-year (or, for phased

Line 10. Enter any unused state historic rehabilitation credit car-

preservation projects, the 5-year) period beginning with the

ried over from prior years.

date on which the physical work of rehabilitation begins must

be more than $10,000. If property is used for both business and

Line 11. Enter the amount of credit from line 11 on line 23 of Form

personal purposes, the qualified preservation costs relating to

1 or line 49 of Form 1NPR.

the personal residence portion of the property must be more

than $10,000. The costs must be incurred after the Wisconsin

Required attachments: After the work is completed, you must

Historical Society has approved your proposed preservation or

file with Schedule HR a copy of the final certification of completed

rehabilitation plan.

work from the Wisconsin Historical Society. For projects not yet

completed, include a copy of the approved “Historic Preservation

In order to qualify, your costs must relate only to preservation

Certification Application – Part 2.”

or rehabilitation work done to (1) the exterior of the historic

property, (2) the interior of a window sash if work is done to

the exterior of the window sash, (3) structural elements of the

property, (4) the heating or ventilating system, or (5) electrical

or plumbing systems, but not electrical or plumbing fixtures.

Schedule Hr - Wisconsin Historic Rehabilitation Credits - 2012 Page 3

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