@Susie42 - that is how non-refundable credits work... you may be surprised, but that is how it works.
for non-refundable credits, the credit reduces the tax liability. And in this case your tax liability is $1, so the non-refunable credit is $1, leaving the liability at zero.
If you decide to sell this property in your lifetime, there presumably will be profit and you'll be able to use the non-refundable credit at that time.
same thing can occur on the federal side as well: some tax credits are non-refundable and they can carry over for years and years if there is no income tax liability.
