Tax Credits

Gotcha-not thinking to clearly this morning :ahhh:

With regards to installation costs of a Biomass-Burning Stove, on page 11, n-09-53 says only the following:

SECTION 5. QUALIFIED ENERGY PROPERTY
.02 Installation Costs. For qualified energy property, the credit is allowed only for
amounts paid or incurred to purchase qualified energy property and for expenditures for
labor costs properly allocable to the onsite preparation, assembly, or original installation
of the property.

Interpret that as you wish and keep your receipts.

szmaine said:

The IRS pdf is still a draft
http://www.irs.gov/app/vita/globalmedia/5695.pdf

But the 1040 instructions do mention biomass stoves, w/ no DRAFT watermark:
http://www.irs.gov/pub/irs-pdf/i1040.pdf

Maybe there will be a patch for your software???

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Thanks for pointing out the 1040 instruction; makes me feel much better.
Yes, Turbotax tends to release several updates during tax season; and
the Form 5695 there now has "DO NOT FILE" written across it.

Something tells me that you won’t be able to do this as you never laid out money for the install ...

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I agree. However, maybe you needed to buy some tools to do the install. Maybe still not
allowable, but at least you spent money, so some chance ...

we just bought a Jotul F3 woodstove that qualifies for tax credit. Where would i put that in turbotax to receive it?

You need to fill out Form 5695 for Residential Energy Credits. The final version of this form is not yet ready. TurboTax estimates that this will be available on 1/21.

regency said:

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.

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Wow the same thing happened to me!

It's worth noting that the $1500 cap does not apply to certain more exotic and expensive
energy-saving things like geothermal heat pumps and solar hot water. At least according
to a newsletter from my electric company ...

TurboTax has updated their Form 5695 for Home Energy Credits. It looks like you put in your wood stove expenses on the line for Energy-efficient building property. The system now lets you calculate and qualify for your Home Energy Credit. The finalized form didn't really add any additional details or information.