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Historic Tax Credit Audits

Historic Tax Credit Audits

Historic tax credits can be lucrative for developers and property owners wanting to rehabilitate a historic building. Once the renovation project is complete, an audit is required to certify the Qualified Rehabilitation Expenses (QREs). 

We will examine your documentation on the QREs, and test the amounts, to ensure that they meet the tax credit criteria. Be sure to be as detailed as possible! You will submit our cost certifications, along with Part 1 or Part C, for example, depending upon the applicable state or federal agency. Final approval isn’t given until the audit is complete.

image of old hotel

Generally, QREs can include:

  • Costs related to the physical rehabilitation of the historic structure, such as structural repairs, interior and exterior restoration, and system upgrades
  • Utilities, insurance, certain professional fees and other costs incurred during the renovation can also be considered

Non-qualifying costs, such as landscaping, additions, or furnishings, should be clearly documented and will be excluded from QREs.  Your financial records, including invoices, receipts, contracts and proof of payment will be needed.

Examples of projects that Wegmann Dazet has assisted with include:

  • Abandoned high-rise buildings
  • Former churches rehabilitated into mixed use properties
  • Renovations to hotels
  • Former bank converted into luxury condos
  • Residential rentals

Are you ready to discuss your renovation project and the process to audit your qualifying costs for available tax credits? Involving us early can help identify documentation needs and potential issues before the cost certification process begins. Contact us now!

FOR ASSISTANCE WITH OTHER A&A Services

Financial Audits, Reviews and Compilations Having accurate, high quality, and timely financial statements is crucial in your company’s growth and success.
AUPs We provide agreed-upon procedures (AUPs) for clients to address a specific requirement or to verify certain transactions, for non-profits and for-profit companies.
Retirement Plan Audits Companies offering retirement plans have a fiduciary responsibility to follow plan documents and complete all required filings. Take advantage of our ability to perform your retirement plan audit efficiently and effectively.
Client Services Our approach is to build a client relationship by understanding the unique aspects of your business to partner with you to promote success. Owners of small and emerging businesses need access to a full-service accounting firm.
Internal Controls We’ll help you create a formalized system of effective internal controls, ultimately to mitigate your strategic operational and financial business risks.

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