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Renovated house in Bath benefits from historic status - 7/22/2009

Michael Gotwald has been restoring a nearly century old house in Berkeley Springs for the past several years.

He bought the house on Hageman Street in the fall of 2006 because he thought it had charm and architectural interest. Even before he bought it, he was in touch with the West Virginia State Historic Preservation Office.

Gotwald wanted to have the house listed individually but was informed that a local group was making an application for the downtown of Berkeley Springs to be an historic district, which happened in February.

By having his house house included as a “contributing building” in the new Town of Bath Historic District, Gotwald was able to apply for a tax credit for many of the costs of renovation he had undertaken. Some of the bigger projects he had to contract for were replacement of the roof, rebuilding a porch and painting the exterior.

The application for the tax credits had to happen before the work began so the proposed renovations could be reviewed by the state officials as being appropriate for an historic building.

Upon completion of the work, “after” photographs were sent to the officers and within a month or so, acknowledgment of the acceptance of the project as being in compliance was received. Now, Gotwald is applying to the state for tax credits for the work that was done. Because the value of the work is greater than his state tax liability for a single year, he will be able to obtain tax credits for the next several years.

The tax credit is calculated as 20% of the amount of construction deemed applicable. In this case, the construction and other related expenses were about $60,000. So he will be able to claim a credit of about $12,000 spread over several years.

Gotwald said he not only has the benefit of enjoying the restored graces of a nice old house, but is also reaping the rewards at tax time. And his house is in better shape to last for the next generation.