Tax Credits

  • Active since 1995, Hearth.com is THE place on the internet for free information and advice about wood stoves, pellet stoves and other energy saving equipment.

    We strive to provide opinions, articles, discussions and history related to Hearth Products and in a more general sense, energy issues.

    We promote the EFFICIENT, RESPONSIBLE, CLEAN and SAFE use of all fuels, whether renewable or fossil.
  • Super Cedar firestarters 30% discount Use code Hearth2024 Click here
Status
Not open for further replies.

basswidow

Minister of Fire
Hearth Supporter
Oct 17, 2008
1,316
Milton GA
My Kozyheat Z42 qualifies for the tax credit. I purchased it in October of 2008 - but it was not installed until late December 2008. Since this new IRS ruling came into effect in June 2009, do you think I can claim my stove credit on this years taxes? Anybody else in this boat?
 
It was available for use prior to January 2009 so it does not qualify.
 
Is the $1500 tax credit available for qualifying stove and additional $1500 tax credit available for qualifying windows installed the same year or is it maxed out at $1500 per year total?
 
Llamaman said:
Is the $1500 tax credit available for qualifying stove and additional $1500 tax credit available for qualifying windows installed the same year or is it maxed out at $1500 per year total?

I believe it is a combined credit, not to exceed $1500. You should check with your accountant to be sure.
 
wsorg said:
I believe it is based on purchase date not installation date.

http://www.irs.gov/pub/irs-drop/n-09-53.pdf

See Section7

.04 For amounts that are paid or incurred in taxable years beginning before
December 31, 2008
, with respect to property placed in service in calendar year 2009,
the credit is computed in accordance with section 2.02 of this notice

And as far as I can see all 2.02 says is that the changes that were made do not extend to property placed in service in 2008

But that's goverment gobble-de-gook for ya - call 'em - they have a special phone tree option for these new credit.
 
szmaine said:
wsorg said:
I believe it is based on purchase date not installation date.

http://www.irs.gov/pub/irs-drop/n-09-53.pdf

See Section7

.04 For amounts that are paid or incurred in taxable years beginning before
December 31, 2008
, with respect to property placed in service in calendar year 2009,
the credit is computed in accordance with section 2.02 of this notice

And as far as I can see all 2.02 says is that the changes that were made do not extend to property placed in service in 2008

But that's goverment gobble-de-gook for ya - call 'em - they have a special phone tree option for these new credit.

Oh, and aslo wanted to mention for anyone seaching the topic...
The credit is NOT refundable like the housing credit - if you have small to no tax liability - it won't help you much.
 
So lets say I purchased my liner and insulation kit before Jan 1 2009 but purchased my stove after Jan1 2009. Placed them both into service during 2009.

I installed it myself so no receipt avail from a sweep or shop. Would I be able to claim the cost of both the stove and liner/insul kit against the 30percent credit ?

Also purchased several hundred dollars worth of supplies to complete the install. Can this cost also be included?

I'm looking to leverage the entire 30percent or 1500 back from Uncle Sam so I need to reach 5000 total..
 
bren582 said:
So lets say I purchased my liner and insulation kit before Jan 1 2009 but purchased my stove after Jan1 2009. Placed them both into service during 2009.

I installed it myself so no receipt avail from a sweep or shop. Would I be able to claim the cost of both the stove and liner/insul kit against the 30percent credit ?

Also purchased several hundred dollars worth of supplies to complete the install. Can this cost also be included?

I'm looking to leverage the entire 30percent or 1500 back from Uncle Sam so I need to reach 5000 total..

OK - me again -
I called them because it fun talking to IRS, it's sort of like talking a BORG/Sybil hybrid..

This unit I spoke with proceeded to look up what DOE/Enerystar had to say which I already knew and read to it.
It said they would go with that because it was "the GOV".
I asked "what about this 2009-53 Notice Sec. 7 pats .01 and .04" - it ask me to read it aloud....
It said "ok, we have to go with that then" I say "ok, but what does it mean?"
This unit finally admitted it didn't have a clue and that the form (5695) used to claim these credits wasn't even finished yet.

Sooooo, the answers to all your questions will be answered when you file your taxes.
Ahhhhhh!
 
The "help line" guys at the IRS usually don't know any more than you, and often they give incorrect answers to questions. I'd say if by any stretch you think you can legally claim anything that gives you a more favorable tax rate, just do it, and let the IRS determine if you did something wrong later.
 
The BI Guy said:
Llamaman said:
Is the $1500 tax credit available for qualifying stove and additional $1500 tax credit available for qualifying windows installed the same year or is it maxed out at $1500 per year total?

I believe it is a combined credit, not to exceed $1500. You should check with your accountant to be sure.

I actually think that not only is the $1500 combined (windows, doors, wood stoves), the credit cannot exceed $1500 for two years (ie, I don't think you can take a $1500 credit in 2009 and another $1500 in 2010).

I'm actually bummed about this - I didn't think that was how it worked until I had already ordered my windows. I'm getting my stove anyway, but I'll be loosing out on the credit.
 
I can't seem to find any mention of woodstoves on the version of Form 5695
that's in the Turbotax 2009 I just installed ...
 
I bought my stove in september of 08 but didn't get around to installing it until after the first of the year. ;-P I intend on claiming it this year although i installed it myself without proof of timeframe.
 
It is a maximum credit of $1,500 over the two calendar years of 2009 & 2010. The effective date is the date the unit was placed into service (not the date you bought the stove). You can claim the cost of the stove, the cost of any supplies required to install the stove, and the installation labor itself. Keep your receipts as records.
 
RustyShackleford said:
I can't seem to find any mention of woodstoves on the version of Form 5695
that's in the Turbotax 2009 I just installed ...

I use turbotax as well.. let me know if you find it.
 
I am a self employed builder/carpenter and installed my own stove, chim, etc. Is there any way I can claim the value of the install?
 
If anyone knows what would be a fair price or framework for how to price your own labor for the install let me know. I also installed the stove/ chimney and would like to be able to claim my labor.
 
If anyone knows what would be a fair price or framework for how to price your own labor for the install let me know. I also installed the stove/ chimney and would like to be able to claim my labor.
[/quote]




I would do it by # of hours x hourly rate for carpenter,chim sweep or similar tradesperson in your area. I would guess this could be anywhere from $20/hr on up. Probably be a good idea to go on the conservative side. If you had never done anything like this before, you probably spent a lot of time figuring things out, which you shouldn't charge for.

Bottom line though is, Can you claim a value for self install? Something tells me that you won't be able to do this as you never laid out money for the install, and now you are trying to get a tax credit for money you never really spent.
 
That makes sense about not getting reimbursed for something you didn't pay out for. I spent a total of roughly 2500 dollars for the stove and chimney. My math tells me I should get a credit when I file for 750 bucks right? What is this about needing to come up to 5000?
 
regency said:
That makes sense about not getting reimbursed for something you didn't pay out for. I spent a total of roughly 2500 dollars for the stove and chimney. My math tells me I should get a credit when I file for 750 bucks right? What is this about needing to come up to 5000?


5000 is the max expense you could use to figure your credit. 30% of 5000 is 1500 which is the max tax credit. If you spent say $9000, you still can't get any more than $1500 tax credit.
 
Status
Not open for further replies.