A landmark property could potentially be certified as a historic property and that would include certain tax advantages. A "historic structure" is "a property listed in the National Register of Historic Places, located in a registered historic district and certified by the Secretary Of the Interior as being of historic significance to the district, or located in a historic district designated under an appropriate state or local government statute that has been certified by the U.S. Department of the Interior.
The Internal Revenue Code provides certain tax incentives and deterrents to encourage the preservation of historic buildings and structures. There is a 20 percent investment tax credit for qualified rehabilitation expenses in qualified rehabilitated buildings and certified historic structures. In addition, the tax code penalizes an individual who demolishes or substantially alters a historic structure. Demolition costs will not be permitted as a deduction, and substantial alterations or completely new improvements will not be eligible for any form of accelerated depreciation.