How to Avoid Tax Credit Recapture After Site Suffers Casualty Loss
A tornado hits and wipes out three of the 10 buildings at your site. A flood leaves the ground-floor units at your site uninhabitable. A fire roars through two floors of your high-rise and severely damages 10 units. If one of these or a similar disaster occurs at your tax credit site, you’ll have additional financial worries associated with property loss. The owner has tax credits tied up with each of the destroyed units, and unless you know what to do to protect those credits, the owner could lose them along with the property.