Return to the facts of problem 72. Assume that Lavinia sells the building in April 2019.
a. How much of the older buildings tax credit must Lavinia recapture?
b. Assuming the building qualified for both credits, how much of the historic structures credit must Lavinia recapture?
In Problem 72
Lavinia owns an advertising agency. In February 2016, Lavinia purchases for $32,000 a building that was originally placed in service in 1922. Lavinia spends $65,000 rehabilitating the building for use as her advertising agency office. The rehabilitation is completed in November 2016.