An apartment building in Baltimore City was built in 1960. The owner wants to convert the building into condominiums and sell individual units. A prospective buyer asks her agent whether any special Maryland property tax incentive might apply to this conversion project. Which Maryland tax incentive is most relevant to this situation?
Correct Answer
A) The Maryland Historic Revitalization Tax Credit, which may apply if the building is certified as a historic structure
Maryland's Historic Revitalization Tax Credit (also known as the Heritage Structure Rehabilitation Tax Credit) provides a state income tax credit equal to a percentage of qualified rehabilitation expenditures for certified historic structures. A 1960 apartment building in Baltimore City may qualify if it is listed on or eligible for the National Register of Historic Places or a local historic register. This is the most relevant Maryland tax incentive for the rehabilitation and conversion of an older building.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Depreciation is an accounting method of allocating the cost of an asset over its useful life, allowing investors to deduct a portion of the asset's cost each year.
Highest and best use is an appraisal concept that identifies the most profitable, legally permitted, physically possible, and financially feasible use of a property. It is the foundation of all property valuation.
Homestead portability allows homeowners to transfer a portion of their accumulated homestead tax savings to a new homestead in the same state.
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