I paid for lead paint removal costing $2900 on a rental property. MA has a lead removal tax credit for $1500. If I take the credit, does my expense for the work become $1400 (I'm not sure if it would ordinarily be an depreciable improvement, but since I'm taking the Safe Harbor for Small Taxpayers it shouldn't matter).
Bonus: Does it matter that my MA tax liability for this year is less than $1500, so I will be carrying over part of the credit?
For anyone else seeing this, I asked another expert and he concurred that federal returns should be unaffected, although Massachusetts requires that you adjust down the expense on your state return.