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rehabilitation credit limitation

Level 1

Searched for info on the rehab credit .... found this FAQ but have questions on it https://www.irs.gov/businesses/small-businesses-self-employed/tax-aspects-of-the-historic-preservati...

1.  #3 says the rehab expenditures must exceed the greater of the adjusted basis of the building and its structural components or $5,000.... so if adj basis is 500K and they spend 300K, I am concluding they do not meet the test and are not eligible... does this seem a correct interpretation... the pro-forma Lacerte is generating a credit so wondering if I missing something

2.  #34 says "Individuals, including limited partners, with adjusted gross income greater than $250,000 who invest in a rehabilitation tax credit project cannot use the tax credit to offset income tax in that tax year."  The IRS answer also refers to #35 & #36 which show the calculation of the credit although the examples are for a person with < $250K AGI..... I input into Lacerte 900K wages and 50K of rental income and Lacerte is generating the credit.....am I misunderstanding the 250K AGI applicability?

Thanks to anyone responding!




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