Lavinia owns an advertising agency. In February 2018, Lavinia purchases a building for $125,000. Lavinia spends $275,000 rehabilitating the building for use as her advertising agency office. The rehabilitation is completed in November 2018.

a. What criteria must Lavinia meet to qualify for the historic structures credit?

b. Assume Lavinia meets the criteria in part a and that the building qualifies for the credit. What is the total tax credits for 2018? What is the basis of the building?