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Environmental Clean -Up Cost Deduction |
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This federal tax deduction provides business owners and investors with an incentive to clean up certain sites located in the Atlanta Renewal Community (RC) that are contaminated with hazardous substances. Businesses can choose to deduct eligible environmental clean-up costs in the tax year the cost is incurred; or if the property is depreciable, businesses can recover the cost by taking depreciation deductions over a specified recovery period. The site owner does not have to be located in a Renewal Community to qualify for this deduction.
Who’s Eligible?
- Prospective purchasers of contaminated property that are willing to pay the cost of clean-up rather than having the seller pay.
- Business owners or investors with sufficient income to be able to use the full deduction of clean-up costs in the year expenditures are paid or incurred.
- Current owners of contaminated property who wish to expand or improve a property.
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Businesses owners or investors interested in sites with potential for development.
Download Form and Publication
Form 4562 Depreciation and Amortization
Publication 946 How to Depreciate Property
Publication 954 Tax Incentives for Distressed Communities
The Atlanta Renewal Community (RC) includes more than 100 neighborhoods. Visit www.hud.gov/crlocator to determine if your property is located in the Renewal Community.
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