IRS Office of Chief Counsel Memo Allows Tax Deduction on Historic Buildings With Accessibility Ramps

Monday, March 15, 2021 - 1:15PM

The Internal Revenue Service’s (IRS’s) Office of Chief Counsel last week issued a memorandum clarifying that the installation of accessibility ramps on historic buildings to comply with the Americans With Disabilities Act won’t jeopardize the tax deductibility of contributions to preserve the building. Easements to facilitate the preservation of historic buildings can qualify for tax breaks under IRS Section 170(h) and IRS Memo AM 2021-001 says ramps for people with disabilities doesn’t interfere with the donor’s right to take a tax deduction on the easement. The memo is not binding in court, but indicates the position the IRS will take in audits.

The Novogradac Historic Rehabilitation Handbook 2020 Edition provides an overview of the historic tax credit and the intricacies of federal and state HTC incentives.

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