Tax credit question

[jophysx]

I installed a new metal roof with added insulation, a new insulated window, and a wood burning insert (Hampton HI300), all in 2010. I was thinking I would be getting a hefty tax rebate on them all. But now that i am doing my taxes, it appears all these improvements fall into the same category for tax purposes, and the total rebate is limited to $1,500. The metal roof alone cost enough to cover the $1,500, meaning essentially no rebate for the wood burner.
Has anybody here navigated these waters already? Am I interpreting the rebate rules correctly? Is there any clever (legal, but clever) way to get the credit for the wood burner PLUS the roof? Can one of them be deferred? Or something like that?
I know this is not a tax site, but if anyone has advice, I'd appreciate it.
On the bright side, I am LOVING the Hampton insert. Looks great, puts out good heat, been able to get a few overnight burns as I learn how to run it efficiently. Spent the last two weekends in the Tillamook state forest cutting firewood ($10 permit for two cords). I'll be ready for some serious burning next winter.

 

[shawneyboy]

I do believe you are correct. I am not an accountant, but to my understanding they all fall under the same category. If you had a solar system installed that falls seperately but most everything else falls under the one area and is limited to 30 percent up to the 1500.

Shawn

 

[mtneer]

I was told by my accountant that the "tax credit" for the stove was govt BS. The credit is the money you will save by using the stove. I was steamed, especially since the stove isn't living up to the dealer's promise.

 

[NH_Wood]

I was told by my accountant that the "tax credit" for the stove was govt BS. The credit is the money you will save by using the stove. I was steamed, especially since the stove isn't living up to the dealer's promise.

Not sure how your accountant is figuring the tax credit. In my case, I received about $1460 in tax credit for my stove and insulation. I owe about $1800 this year - if I hadn't had the credit, I would have owed $3260. I'll take it. Cheers!

 

[oldspark]

I was told by my accountant that the "tax credit" for the stove was govt BS. The credit is the money you will save by using the stove. I was steamed, especially since the stove isn't living up to the dealer's promise.

What has he been smoking?

 

[shawneyboy]

I was told by my accountant that the "tax credit" for the stove was govt BS. The credit is the money you will save by using the stove. I was steamed, especially since the stove isn't living up to the dealer's promise.

You need to find a new accountant. Because of the credit, I actually got a refund this year. I still paid as my son says a "shitton" of money, but I did get some of it back.

Shawn

 

[orionrogue]

Turns out I would've been in the same boat, as we had central air installed which counts as an energy saving home improvement (who knew??).

 

[MishMouse]

I was told by my accountant that the "tax credit" for the stove was govt BS. The credit is the money you will save by using the stove. I was steamed, especially since the stove isn't living up to the dealer's promise.

Your accountant does not know what they are talking about. Get Form 5695
"Line 3a. Enter the amounts you paid for energy-efficient building property. Energy-efficient building property is any of the following. ...A stove that uses the burning of biomass fuel to heat your home or heat water for your home that has a thermal efficiency rating of at least 75% as measured by using a lower heating value. Biomass fuel is any plant-derived fuel available on a renewable or recurring basis, including agricultural crops and trees, wood and wood waste and residues (including wood pellets), plants (including aquatic plants), grasses, residues, and fibers."

As for your stove not living up to the dealer's promise, the Lopi is rated to heat at 2K sqft.
If it is not doing the job, there could be multiple causes:
1) Improper install causing heat loss up chimney
2) Improper Insulation in the house
3) To small of a stove
4) Improper seasoned wood
5) Improper use of stove
6) Poor heat circulation

Depending on the issues you are having you might have more luck opening a new thread stating your issue with your Lopi then people can figure out why your stove is not living up to expectations.

 

[oldspark]

If it is a good tax person they will ask if you did any thing to earn the credit.

 

[cptoneleg]

I was told by my accountant that the "tax credit" for the stove was govt BS. The credit is the money you will save by using the stove. I was steamed, especially since the stove isn't living up to the dealer's promise.

You need a new accountant I got mine give him his sign;

 

[tfdchief]

If it is a good tax person they will ask if you did any thing to earn the credit.

+ several! And there is still tax credit for 2011, just not as much.

 

[jophysx]

Thanks for the replies, everybody. I am resigned to the fact that there is no way to get more than the $1,500 credit in my case. Oh well. Still glad I did it.

-Jim

 

[flueguyPA]

Hey chief, where did you get info that there is still a credit available for 2011?

 

[oldspark]

Hey chief, where did you get info that there is still a credit available for 2011?

From what I understand if you have already got the 1500 you can not get any more even with the new one for 2011.

 

[tfdchief]

Hey chief, where did you get info that there is still a credit available for 2011?

From what I understand if you have already got the 1500 you can not get any more even with the new one for 2011.

Sorry, I didn't mean to mislead you. I don't think you can get credit (now 10% instead of 30%) again. One time deal only I believe. So you are correct.

 

[The Dude]

I was told by my accountant that the "tax credit" for the stove was govt BS. The credit is the money you will save by using the stove. I was steamed, especially since the stove isn't living up to the dealer's promise.

I am trying to find the logic in this comment. Let's say you save $1500 by using the stove and no such tax credit existed. That's great - you saved $1500 by using your stove. The credit is offered though. So in addition to saving $1500 by using your stove, the government is reimbursing you for 30% of the money you spent buying the stove, chimney, stovepipe, hearth, etc. and having it installed, up to $1500. Double great!

I hardly ever find the need to put multiple question marks to indicate serious confusion, but ????????

 

[MishMouse]

Myself I have 3 possible explanations
1) The Accountant in question is a complete idiot and has no understanding of the credit
2) The Accountant in question is going to cheat the person out of the credit possibly filing an admended return where he is the recipient of the extra money.
3) The person has already achieved the 1.5K tax credit through other means

I hope they went to a different accountant to have their taxes done or I predict an audit in there future.

 

[weatherguy]

I got $1365 last year when I bought my stove (2009 taxes). Last summer we had to replace our central AC and we went with a unit that qualified, since we had the credit in 09 we could only get $135 credit this year. My accountant said it was $1500 for a two year period. We could have fixed the AC for $1500 but went with a whole new unit for $3,300, we did get a $300 rebate from the power company but didnt get as much as a credit as we thought. I would have just did the $1500 fix if I knew.

 

[The Dude]

This may sound like a foolish statement, but reasons like the one above are why I don't trust having an accountant do my taxes for me. I have my own business and just getting all the finances together is about 75% of the work, so I don't mind doing the remaining 25% of tax forms. In return, I know all of the rules that affect me from having to read up on them. This wouldn't work for everyone, but I am a believer that if your taxes are simple, it pays to do them yourself if you are thorough.