0-29-year-old 30-year-old 40-year-old Certified

building building building historic

Acquisition cost

(building) 600,000 100,000 100,000 100,000

Renovation cost - 500,000 500,000 500,000

Total cost 600,000 600,000 600,000 600,000

Investment tax credit - (75,000) (100,000) -

Depreciable basis 600,000 525,000 500,000 600,000

1st year depreciation

(ACRS 15-year straight

line) 40,000 35,000 33,333 40,000

Tax benefits

Depreciation (at

50% rate) 20,000 17,500 16,667 20,000

Investment tax

credit 0 75,000 100,000 125,000

Total 1st year benefit 20,000 92,500 116,667 145,000

Annual tax benefit

(Years 2-15) 20,000 17,500 16,667 20,000

n1 As of January 1, 1982