Discussion:Energy Credits for personal residence
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Discussion Forum Index --> Tax Questions --> Energy Credits for personal residence
| 12 February 2007 | |
| New Question?
On the new energy credits for 2006, if a taxpayer purchases a newly built home from a developer, are they eligible for these new energy credits if they otherwise meet the qualifying specs? | |
Coastalcpa (talk|edits) said: | 17 February 2007 |
| I'm trying to work through the rules for Form 5695. This is the form to take the Nonbusiness Energy Property Credit and the Residential Energy Efficient Property Credit. I can't find anything that says the buyer isn't eligible; in fact, that seems to be who this form is supposed to benefit.
Part I of Form 5695 is for qualified energy efficiency improvements (insulation, windows, doors, etc) and residential energy property costs (heat pumps, water boilers, circulating fans, etc). Part II of the Form 5695 is for solar and fuel cell property. I know that the taxpayer is supposed to rely on certifications from the manufacturers to know whether or not the purchase qualifies for the credit. So when you have a client that bought a new home are they supposed to ask the builder for this information? I suspect the builder will reply with a blank stare!!! | |
| 18 February 2007 | |
| I get the impression that Notice 2006-26 is the definitive pronouncement by the IRS on the subject. I highly recommend it in addition to the form instructions. -- Larry Hess, CPA, Albuquerque, NM - Talk to me | |
Southerncpa (talk|edits) said: | 27 February 2007 |
| I have read Notice 2006-26 and I am still a little unclear. If a taxpayer constructed a home using subcontractors and obtained his own construction loan which was completed in 2006 using energy efficient material and appliances, would he be eligible for the credit? Or, are they only available for taxpayers making improvements to an existing house being occupied by the taxpayer?Southerncpa 13:25, 27 February 2007 (CST) | |
Actionbsns (talk|edits) said: | 6 March 2007 |
| I have another question about the credit. My client is able to carry the credit forward to 2007, but because of their income, I don't see them being able to utilize this credit for a number of years, or maybe never. But how far forward can the credit actually move? Nothing says anything about going past 2007, so is a use it in 2006 or 2007 or lose it type of credit? | |
| 20 March 2007 | |
| No carryforward on the nonbusiness credits unless the credit is for solar heating or electricity, or is for qualified fuel cell property (25D credits). Sec. 25D credits may be carried forward from 2006 to 2007 only. | |
| 18 December 2008 | |
| Are these credits for homeowner energy efficiency improvements and qualified residential energy property gone for 2008? The Proseries preliminary 5695 has them gone. The TaxBook told me at page 11-11 they were good for 2008 and were not scheduled to expire, but they dropped it from the organizer. I see IRC 25C(g) still here. But was there a tax bill to do away with them? | |
| December 18, 2008 | |
| Final compromise was they were dropped for 2008 and then reinstated for 2009. For anyone who did a client newsletter in Sept, we had to retract... | |
| 18 December 2008 | |
| I now also see that the IRS says they expired on the changes for 2008 that they listed. | |
| 18 December 2008 | |
| It looks like to me that Sec. 25C & Sec. 25D were both extended by the Emergency Economic Stabilization Act of 2008, (H.R. 1424, P.L. 110-343 signed into law on Oct. 3, 2008 by President Bush) but the code reproduced in TaxAlmanac is not yet up-to-date. If I'm correct, 2008 is included. -- Larry Hess, CPA | Albuquerque, NM | |
Death&Taxes (talk|edits) said: | 18 December 2008 |
| See Section 25C(g) which says it will not apply to 'any property placed in service after 12/31/07 and before 1/1/09 or after 12/31/09. This is from RIA | |
| 18 December 2008 | |
| D&T, you are correct. I'm glad to know that. It will be relevant some 2008 returns I will prepare. Thanks. -- Larry Hess, CPA | Albuquerque, NM | |
