tax credit on used stove?

[gottahavvitt]

There is a Harman PP38 for sale in my local paper for $1000.00. It was used for 2 seasons and come with all piping and a granite hearth pad.
Does this stove qualify for the energy credit even though it is used. Is there anything I should look for When I look at this stove today. Is $1000.00 a good price?

 

[dac122]

Let me know if this article on How to Buy a Used Wood Pellet Stove is helpful.

The energy tax credit does not specify the equipment must be new, only that you keep all receipts of the purchase and parts needed for install, and the stove is EPA certified (which most are). Just be sure to get a copy of the EPA certificate for your records.

 

[imacman]

.......The energy tax credit does not specify the equipment must be new, only that you keep all receipts of the purchase and parts needed for install, and the stove is EPA certified (which most are). Just be sure to get a copy of the EPA certificate for your records.

I agree. It says nothing about it having to be new, just that it meets the EPA certification.

Don't forget that ANYTHING that you buy to install/run your stove can be included (pipe, hearth, surge suppressors, high heat paint, installation costs, etc, etc...anything but pellets) can be considered as part of the "installation".

here's the link to Harman's "Certificate" that you can print out & keep w/ your tax records:

www.hearthnhome.com/downloads/communications/TaxStim_Certificate_Har.pdf

 

[dac122]

.......The energy tax credit does not specify the equipment must be new, only that you keep all receipts of the purchase and parts needed for install, and the stove is EPA certified (which most are). Just be sure to get a copy of the EPA certificate for your records.

Don't forget that ANYTHING that you buy to install/run your stove can be included (pipe, hearth, surge suppressors, high heat paint, installation costs, etc, etc...anything but pellets) can be considered as part of the "installation".

Yes. I would also include any specialty tools needed such as drill bits, hole saw, hammer drills, sawzall, blades, etc. My thinking is that if you paid someone to install it for that you'd be essentially paying for part of their tools as the cost of doing business, in a sense. Just keep all receipts.

 

[imacman]

Yes. I would also include any specialty tools needed such as drill bits, hole saw, hammer drills, sawzall, blades, etc. My thinking is that if you paid someone to install it for that you'd be essentially paying for part of their tools as the cost of doing business, in a sense. Just keep all receipts.

Yep, I agree! Remember, the IRS was pretty vague in their description of the credit. That allows interpretation of it to the tax preparer (In my case, ME and TurboTax).

BTW, here's the IRS info on the subject:

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

 

[Firenutz]

tagged

 

[Bkins]

So how would you get a EPA certificate on an older stove? I guess I could call the mfger.

Bkins

 

[dac122]

So how would you get a EPA certificate on an older stove? I guess I could call the mfger.

Bkins

Manufacturer or dealer.

 

[mascoma]

Yes. I would also include any specialty tools needed such as drill bits, hole saw, hammer drills, sawzall, blades, etc. My thinking is that if you paid someone to install it for that you'd be essentially paying for part of their tools as the cost of doing business, in a sense. Just keep all receipts.

Yep, I agree! Remember, the IRS was pretty vague in their description of the credit. That allows interpretation of it to the tax preparer (In my case, ME and TurboTax).

BTW, here's the IRS info on the subject:

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

Would this requirement limit you to new stoves?
"The original use of the item commences with the taxpayer."

As for the tools... You can do anything you want until you get audited.

 

[dac122]

Yes. I would also include any specialty tools needed such as drill bits, hole saw, hammer drills, sawzall, blades, etc. My thinking is that if you paid someone to install it for that you'd be essentially paying for part of their tools as the cost of doing business, in a sense. Just keep all receipts.

Yep, I agree! Remember, the IRS was pretty vague in their description of the credit. That allows interpretation of it to the tax preparer (In my case, ME and TurboTax).

BTW, here's the IRS info on the subject:

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

Would this requirement limit you to new stoves?
"The original use of the item commences with the taxpayer."

As for the tools... You can do anything you want until you get audited.

To be fair the credit does not go into the nitty-gritty details on exactly what is covered for installation. It just says you get

a credit ... for residential energy property expenditures paid or incurred by a taxpayer

So under that vague requirement I would have no problem arguing I needed a $20 Hammer Drill from Harbour Freight for my basement install, vice renting one for $70 or hiring someone to do the job for $100, since I somehow have to make a hole in my cinder block.

I would expect nothing less than laughter from an IRS auditor if you tried to justify a Bosch Electric Rotary Hammer for $500.

 

[Clay H]

So can i get a tax credit on the St. Croix i bought 5 years ago? :smirk:

 

[gottahavvitt]

I wonder if I can get credit for the addition I am adding just so I have a place to put the stove. HMMMMMM

 

[gottahavvitt]

So can i get a tax credit on the St. Croix i bought 5 years ago? :smirk:

I believe it only works if you buy in 09 or10

 

[imacman]

So can i get a tax credit on the St. Croix i bought 5 years ago? :smirk:

I believe it only works if you buy in 09 or10

Actually, you could have bought the stove in '08, but the date that you use to get the tax credit is the "date placed into service", or the day the inspector OK's it, or the day you first started using it.....that day has to be after Dec. 31, 2008.

 

[chrisf]

Well I am glad I found this. I bought a lopi pellet stove in may used I will give it a try. I paid 750 for the stove. going green does pay.

 

[cdodge04]

So the verdict is that used stoves are included in this tax credit? As long as I download the certificate from the website and keep my bill of sale...

 

[chrisf]

from what I can tell yes. I got the cert dont see why not. you can get them right from the manufacturers web site. I do my own taxes what the worst the will do they can audit me but I dont claim alot too.

 

[mascoma]

I still think this sentence in the regs means new product only...

“The original use of the item commences with the taxpayer.”

But you can make your own call.

Why can't the government ever just write a document in english a college grad can understand without hiring a lawyer / accountant?

 

[Fsappo]

I interpet is as being new stoves only. I recite that line to the customers and tell them they can make their own call. We don't sell used pellet stoves (goosebumps/shiver, etc) but we still get customers asking

 

[imacman]

I still think this sentence in the regs means new product only...

“The original use of the item commences with the taxpayer.”

I disagree. Using your interpretation, if I buy a used or showroom "demo" stove from a dealer, that meets the EPA regs, I still can't claim the credit???

It does NOT say "new items only", so as I've said before, the IRS has left this open to the interpretation of the tax preparer. "taxpayer" means (IMO), anyone in the country who files a return, that's all.

 

[Fsappo]

I still think this sentence in the regs means new product only...

“The original use of the item commences with the taxpayer.”

I disagree. Using your interpretation, if I buy a used or showroom "demo" stove from a dealer, that meets the EPA regs, I still can't claim the credit???

It does NOT say "new items only", so as I've said before, the IRS has left this open to the interpretation of the tax preparer. "taxpayer" means (IMO), anyone in the country who files a return, that's all.

I think it is pretty clear "original use" So, a stove "used" in a showroom would, in my opinion, not qualify. To me it's very simple verb-age and black and white. I know no other way to interpret Original use commences (starts) with the taxpayer (Person claiming the credit on their taxes). Tp say "the taxpayer" can mean anyone who pays taxes is a stretch. So if it was USED, whether by another homeowner or by a retailer, use is use, then I would always recommend to my clients claiming it would be at their own risk. Why suggest anything different and risk reputation, just for the sake of being the person to give advice?

 

[slow-al]

“The original use of the item commences with the taxpayer.”

Is taxpayer refering to the individual who paid the SALES tax? This would leave out items sold on craigslist or simillare spots but still allow for the demo stove that was used in a show room.

Remember this is the irs, they taxes us when we earn it, save it, spend it, or will it to our next of kin. They'll want a cut of the exchange of cash in the form of sales tax, the rebate was mandated to them, not concieved by them. They still want thier (your) money.

 

[Fsappo]

“The original use of the item commences with the taxpayer.”

Is taxpayer refering to the individual who paid the SALES tax? This would leave out items sold on craigslist or simillare spots but still allow for the demo stove that was used in a show room.

Remember this is the irs, they taxes us when we earn it, save it, spend it, or will it to our next of kin. They'll want a cut of the exchange of cash in the form of sales tax, the rebate was mandated to them, not concieved by them. They still want thier (your) money.

That is a good point. The thing that shocks me is, you actually think the IRS doesn't care about the quality of life for the working American and is more concerned about sucking the dollars out of the public like a huge vampire. The IRS is here to fairly distribute the wealth..come on, you should know better.

 

[mascoma]

It has nothing to do with sales tax... there is no federal sales tax... thats why why I by anything here in NH I pay 0% sales tax... exept booze.

taxpayer refers to the person claiming the credit on their federal income taxes.

I think it would be reasonable to allow demos under "original use" because the item had never been sold. Like a car that had never been titled, its not used.

 

[imacman]

.....The IRS is here to fairly distribute the wealth..come on, you should know better.

"fairly distribute the wealth".......if that isn't a socialist statement, I don't know what is. There's NOTHING fair about it. The IRS thinks it been given the job of Robin Hood.