Explanation of Calculations:

Purchase Price of Property
This is the cost of acquiring the property and is not part of the allowable renovation costs used to calculate the benefits. It is only used to calculate the total cost of the project.

Qualified Improvements
These are the expenditures that are used to calculate the benefits. Not all expenditures qualify. Contact your accountant or email us and we will try to point you in the direction of someone who can give you the specific rules and guidelines.

Qualified Facade Improvements
These are exterior renovations and improvements that are part of the qualified improvement expenditures. This is not in addition to the qualified improvements figure.

Tax Credits and Grants Section
This goes through the calculation of benefits based on the current programs. The "If Taken Over Time" column reflects the total benefit received but is realized over time. Both the Federal and Virginia Historic Tax Credits are utilized based on the amount of personal income tax you have. State Tax Credits can be used over a period of 5 years while Federal can be used over a period of 20 years. The "If Credits Sold" column reflects the sale of tax credits and the resulting discount associated with the sale. The difference is that you receive the procedes as soon as the sale is complete.

Federal Tax Impact of Money Received
This is the personal income tax associated with receiving grants, state tax credits and tax credit sale proceeds.