Rehabili tation Tax Credit. Bob acquired a certified historic structure and placed it in service…


Rehabili tation Tax Credit. Bob adscititious a certified historic make and placed it in benefit August of the exoteric year, as an office for his calling. He remunerated $20,000 for the construction (detested of the land) and late $40,000 for reinstatement coses.

a. What is the rehabilitation tax honor (before limitations)?

b. What is the plea of the construction for MACRS depreciat ion purposes?

c. Compute the deprec iation confabulation Bob can receive on the construction for the exoteric year

For the foregoing immodest years, Pharm Inc. had middle gross receipts of $5,000,000. The company's fixed-base percentage is 3% . Compute Pharm lnc.'s exoteric year honor for inquiry activities. ls Phann Inc. entitled to demand any conclusion for inquiry and experimentat ion expenses for the exoteric year?