Tax Credits for Historic Properties
People from all over the world love Charleston and its wonderful architecture. Our leaders years ago, knew that preserving that charm would be important to its future. What might seem to some like draconian rules that must be followed have become the unswerving guiding principles to preserving these beloved historic structures. Consequently, incentives have been put in place to encourage owners to “do it the right way” and truly restore and not just remodel historic buildings.
How does it work?
Taxpayers who rehabilitate their owner-occupied residence may be eligible to subtract 25% of the costs of many expensive repairs and renovations from their state income taxes.
How do I qualify?
Your building must meet both of these criteria:
1. You must own and live in the building or a portion of the building that will be rehabilitated. It can be a house or another type of historic building, such as a school or store, that you are rehabilitating to live in. An historic outbuilding associated with your residence, such as a barn or a garage, can also be eligible for the credit. The credit does not apply to buildings or portions of buildings that are used in a trade or business or produce income.
2. Your building must be one of the following:
• listed individually in the National Register of Historic Places
• contributing to a listed National Register historic district
• determined by the State Historic Preservation Office (SHPO) to be eligible for individual listing in the National Register
• an outbuilding that contributes to the significance of a property listed in the National Register
One might be surprised to learn that tax credits are available all around the Lowcountry and not just downtown Charleston that qualify. Here are a few: Historic District (HD) in Summerville, Hampton Park Terrace, a carriage house downtown, a Freedman’s cottage in North Central, Mt. Pleasant HD, Ashley River HD Atlanticville HD Charleston Navy Yard Officer’s quarters HD, French Quarter HD, Moultrieville HD, Pinopolis HD, Pineville HD, Sullivan’s Island HD, Successionville HD to name a few.
What elements qualify?
Money spent in the following categories may be counted as “Rehabilitation Expenses” when calculating the amount of credit:
• restoration of historic plaster
• energy efficiency measures except insulation in frame walls
• repairs or installation of heating, air conditioning, or ventilating systems
• repairs or installation of electrical or plumbing systems exclusive of new electrical appliances and electrical or plumbing fixtures
• architectural and engineering fees.
Allowable expenses do not include the cost of new construction beyond the footprint or volume of the existing building, the cost of acquiring or marketing the property, the value of an owner’s personal labor, or the cost of personal property.
Are there other requirements?
You must spend more than $15,000 within 36 months on Rehabilitation Expenses that qualify. emember, this is a government program. There will be forms to complete, timelines, reviews, and copious documentation is required.
What is the most important take away?
Do not start any work until the first form is approved by the state of SC. You must have documentation of every element you intend to claim with before and after photos. You must tract specific expenses scrupulously throughout the process and you must quantify all work. This is not easy and contractors don’t like doing it so you will likely be the project manager for the tax credit work. But remember, it pays well come April 15th.
Spring has SPRUNG and eager buyers are out in full force this season. With beautiful weather and new listings up 4.2%, it’s no wonder competition is fierce for well-priced homes in the Charleston area. Although inventory is still a factor, sellers are poised to make quite a profit in the coming months. With the the national unemployment rate dropping to 3.6% during April 2019 (the lowest level since 1969) we anticipate a positive affect on the real estate market.
Closed Sales -2.6% | Median Sales Price 0.0% | Months Supply 0.0%
Market Statistics by Area
Despite mixed weather patterns across much of the U.S. in the first quarter, prices in the Charleston,SC market moved higher as the Median Sales Price was up 5.8 percent. Many home buyers and sellers are sighing in relief as the Federal Reserve announced there will be no further interest rate hikes planned for 2019. This is great news for the area and we anticipate increasing numbers reflected not only in home sales, but in terms of mortgage rates as well, which typically follow suit.
Closed Sales -9.1% | Median Sales Price + 5.8% | Months Supply -2.6%
Market Statistics by Area
The Village at Wild Dunes
When it comes an investment in coastal resort living, there’s no better place than the Village at Wild Dunes. Situated at the center of Wild Dunes Resort, The Village offers some of the best accommodations you will find in the area, with options ranging from studios and single rooms to spacious suites and luxurious penthouses. These properties make perfect vacation homes, without all the maintenance and expense of a beach house, and are some of the best investment properties on the Charleston Coast.
Opened in 2008, it is one of the newest properties within the Resort, complete with an in-house concierge and housekeeping service that is available to all owners and guests who stay in its hotel-like guest rooms, studios and suites.
Each residence includes access to all amenities within the Wild Dunes Resort* including beach access, an assortment of shops, restaurants and snack bars ranging from take-out to fine dining, several swimming pools, a fitness center, seventeen tennis courts, two golf courses, a spa, and miles of walking and jogging paths.
Below we’ve featured 4 of the best properties within the complex that are currently listed for sale. Enjoy!
423 B The Village at Wild Dunes
2 Br, 2 Ba, 1216 sqft | MLS#18004143 Enjoy ocean views from this spacious 2 bedroom, 2 bath fully furnished property. This unit is located on the fourth floor and has an excellent rental history, grossing $65,355 in 2017. Features include granite countertops in the kitchen and bathrooms, stainless steel appliances, and custom drapery. Listed by Joe Walker | 843-345-4510 | firstname.lastname@example.org
412 B The Village at Wild Dunes
1 Br, 1 Ba, 715 sq ft. | MLS# 18022858 This true 1 bedroom, 1 bathroom unit is turn-key and comes completely furnished. It grossed just over $53,000 in rental revenue for 2017. Featured include an eat-in kitchen/living room combo with access to the covered balcony, bright and airy master bedroom and gorgeous master bath. Listed by Judd Borders | 843-817-0227 | email@example.com
410 A The Village at Wild Dunes
1 Br, 1 Ba, 715 sq ft | MLS#19005123 This light-filled true 1 bedroom, 1 bathroom unit is move-in ready and shows beautifully. It grossed $43,617 in 2018 and includes updated decor and patio furniture. Listed by Layne McCombs Kipp | 803-586-9553 | firstname.lastname@example.org
408 A The Village at Wild Dunes
1 Br, 1 Ba, 449 sq ft | MLS#18029478 This studio is the least expensive full ownership property you can buy within Wild Dunes Resort making it is a rare investor special! It grossed $40,995 in 2017 and includes granite countertops in the kitchen and bathroom, tile shower and covered balcony. Listed by Judd Borders | 843-817-0227 | email@example.com
Whether you’re looking for a primary residence, second home or vacation rental, our knowledgeable agents can help guide you through the process. Contact us today to start the process of finding your dream home in the Village at Wild Dunes.
Despite early predictions of a housing market slump, February numbers indicate a resilient market, even with inclement weather in other parts of the country deterring some buyers. While it is too early to predict how the rest of the year will pan out, we do anticipate an active market as the weather gets better and more buyers flock to the city to find their forever homes.
Closed Sales +9.4% | Median Sales Price + 2.9% | Months Supply -5.4%
Market Statistics by Area
Charleston is known for historic beauty and centuries old architecture, but we are excited to introduce Charleston’s newest condominium development right in the heart of the city. Old world charm meets modern luxury with this impressive project.
Only two flats remain in Historic Charleston’s new distinctive address, Harleston Gates. These boutique residences showcase the very best of elegant contemporary living in a classically inspired framework. Flats have private balconies and luxury appointments. Construction is underway and moving along quickly.
An exclusive partnership with Wentworth Mansion offers owners the option for concierge access, preferred reservations at Circa 1886, special inn, spa and restaurant pricing, in-home room service, housekeeping services, and even provisioning services. Harleston Gates also offers a gated entry with covered garage parking; two spaces per residence, electric vehicle charging stations, bicycle storage, a dog-washing station, and their very own doorman.
Created by the Lowcountry’s finest luxury development company, Bennett-Hofford Construction, designed by prominent architectural firm, Evans & Schmidt, and featuring renowned landscape architect, Sheila Wertimer, Harleston Gates offers an unparalleled opportunity to experience the essence of Charleston living. Located in Harleston Village, a vibrant and tranquil neighborhood, it is favorably situated a few blocks west of the nationally-acclaimed King Street shopping and restaurant districts.
This “one of a find” opportunity does not come on the market very often! Located on the north side of the Isle of Palms and between the ICW (Intracoastal Waterway) and Hamlin Creek, 0 Little Goat Island is a developer’s dream! The seller has no information regarding build-ability but tax records show 24.67 acres of high ground land. The island is only accessible by boat and is an incredible value for the price.
Originally constructed in 1924 as a schoolhouse known as the Sullivan’s Island Graded School, the building now known as Sullivan’s House was built in the Craftsman architectural style. By 1938, two wings were added to the east and west, and a portico was constructed at the west wing’s façade. Over the years, this building served as a church and a gathering place and the 1938 footprint remains intact today.
A recent restoration blends historic details mingled with artfully selected modern finishes to create the four luxury residences of Sullivan’s House. The project was developed by a group led by Patrick W. Marr, Steven G. Kleiman, and David C. Stern. Laura Middleton was the lead architect of The Middleton Group, an award-winning firm that has completed many historic renovation projects in Charleston. With interiors by designer Carol Lund, and timeless landscaping by Kelly D. Messier, Sullivan’s House is as beautiful as it is historic.
January brought out a new crop of buyers with a renewed enthusiasm in a new calendar year. Sales totals may still inevitably start slow in the first half of the year due to ongoing inventory concerns. Despite home affordability continuing to be an issue, early signs suggest the market is beginning to improve, with more homes coming on the market just in time for the summer months.
Closed Sales -16% | Median Sales Price + 2.7% | Months Supply 0%
Market Statistics by Area
We’ve been making the most of our 30th year in business by supporting some of our favorite local charitable organizations, and since it’s Valentines Day, our February donations are all heart.
And finally, Very Special Thanks to Rebecca & Jeff Narkiewicz, Jack Hurley, Judd Borders, Scott Pierce, Betty Poore, John Grimm, Nicole Brooks, Christy Humphries, Donna Bell, Beth Putman, and Susan Petty for volunteering with Adopt a Highway – on a Saturday – to keep Palm Blvd clean 🙂