Discussion Archives:Enery tax credit for new home

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Discussion Forum Index --> Tax Questions --> Enery tax credit for new home

Blrgcpa (talk|edits) said:

7 January 2007
I've been told the energy credit is only for improvements to an exisiting home. I don't agree with that.

Taxpayer went to contract with a builder to construct a new home. Taxpayer closed in Dec and moved in. The new home is now the primary residence and is in the USA.

According to the instructions for form 5695:

"For credit purposes, costs are treated as being paid when the original installation of the item is completed, or in the case of costs connected with the construction or reconstruction of your home, when your original use of the constructed or reconstructed home begins. ..."

I understand that to mean that enery credits are as of the date the taxpayer closed and moved into the newly constructed home.

Any comments are appreciated. Thank you!

Www.cpa1.biz (talk|edits) said:

7 January 2007

If the TP paid for the house in 2006 in December, they should be able to take credit on their tax return. This was their "existing" home in December.

Blrgcpa (talk|edits) said:

8 January 2007
I called the IRS Complex Tax Issue sec. When I questioned the instructions for form 5695, the person said maybe that's correct.

They are doing add'l research on the question and will get back to me with 2 weeks.

BarbJN (talk|edits) said:

10 February 2007
The 2 weeks are long past - did someone get back to you with an answer?
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