How do I calculate the amount of Credit based on a Projects Qualified Basis?
To determine the amount of Credit based on a Projects Qualified Basis, you must first determine the Projects Eligible Basis, Applicable Fraction and Qualified Basis. What is Eligible Basis? Eligible Basis means incurred costs for the Project (excluding expenses associated with any commercial or non-residential areas) which are depreciable. Eligible Basis includes: • expenses allocable to acquisition costs of an Existing Building(s) which is rehabilitated (but excluding the Land and Land acquisition costs); • site work associated with the Buildings (e.g. grading and excavation), but excluding off-site improvements (e.g. off-site utilities, streets and sidewalks); • rehabilitation and new construction costs of Residential Rental Property; • architectural and engineering fees, plus environmental reports or abatement associated with an Existing Building(s); • interim costs such as construction insurance, construction loan fees (in some cases),and property taxes; • Developer Fees and Consul
