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To what extent do building acquisition costs qualify for the CR Deduction?

April 26, 2017acquisition building costs CR deduction extent qualify

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To what extent do building acquisition costs qualify for the CR Deduction?

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A taxpayer can include the cost of the building acquisition in taking a CR Deduction, but only to the extent that the acquisition cost does not exceed 30 percent of the aggregate qualifying CREs (determined without regard to the acquisition cost). For example, if the building cost $500,000 to acquire and renovations eligible for CREs were $1 million, up to $300,000 of the acquisition cost could qualify as a CRE.