Tax Rebate, question on hearth and chimney pipe

[CTburning]

"30% consumer tax credit (up to $1500) for the purchase and installation of a 75-percent efficient biomass-burning stove. "

Ok, so labor to install the stove is included but what about a hearth pad and new stove pipe to operate the stove. My old stove took 8" piping and it won't work with the Fireview that takes 6". I need to replace it to safely operate my stove. It is a very grey area. I also need a new hearth as my old one was painted concrete blocks (came with the house). I know that won't fly from what I read on Woodstock's website. Once again I need to purchase a new pad to safely operate my stove. Same could be argued if my outside chimney was dangerous/unsafe or in my case I need a new chimney cap to be able to use the stove. What do you think? Thanks in advance

 

[DAKSY]

From the way I read the blurbs on this issue, the stove, connector, chimney, hearthpad
& labor should be calculated into the equation - UP to $5K
Bottom line is that the interpretation is going to be up to the IRS (or your Taxman) when you apply for the credit
when the next filing occurs...

 

[BrotherBart]

Actually the only time the IRS would interpret anything is if you happened to get audited. Then you pay penalties and interest on the tax back to when you filed the return for anything that is disallowed.

 

[stejus]

I had so many questions about this I called the IRS and spoke to someone a few months ago. In a nut shell, all costs associated with installing a biomass heating device is eligible up to $1500 credit (30% of costs) in 2009/2010. So I asked him about "everything" and he said "yes", if it was to install a biomass heating device.

Here's what I am claiming because "ALL" of this was needed to make my biomass heating device operational. Some will argue that the stone mantle, chimney cap and insulation is not eligible, but in my case it "WAS" required to make the biomass heating device operational.

Stove
Flex Pipe
Insulation
Stone mantle and hearth extension
Chimney cap
Install of all above

 

[onesojourner]

Here is what I plan to claim

Thinset- $25
Hardibacker $20
Tile $80
Tile Blade for Grinder $20
Tile Spacers $8
Grout $15
Stove $1300
Gasket for stove $7
Liner Kit $685
SIlicon Sealant (guess) $20

Should get around $654 back making the real total $1526. I am hoping to save $200+ per winter and have a warmer house.

 

[CarbonNeutral]

Here is what I plan to claim

Thinset- $25
Hardibacker $20
Tile $80
Tile Blade for Grinder $20
Tile Spacers $8
Grout $15
Stove $1300
Gasket for stove $7
Liner Kit $685
SIlicon Sealant (guess) $20

Should get around $654 back making the real total $1526. I am hoping to save $200+ per winter and have a warmer house.

The only thing I would not include perhaps is the tile blade as presumably you'll still be able to use it after the install - for only $20 ($6.66 credit?) I'd leave that off just in case someone at the IRS is having a bad day.

 

[Don Ed]

That's interesting that you can count labor for a woodstove install. We're having almost all our windows replaced plus new garage doors and a new downstairs entry door that all meet the tax credit requirements so we are not lacking for ways to come up to the full $1500 of tax credit. I'll be anxious to see how the IRS form looks to indicated what we had done this year. I don't want to just put down the full $1500 without there being a place to show all the improvements we had done or did ourselves. Seems like a red flag for an audit.

The best thing about all the improvements is that we are sure to have much lower heating bills even with having to buy part of this winter's wood supply.

 

[BrotherBart]

That's interesting that you can count labor for a woodstove install. We're having almost all our windows replaced plus new garage doors and a new downstairs entry door that all meet the tax credit requirements so we are not lacking for ways to come up to the full $1500 of tax credit. I'll be anxious to see how the IRS form looks to indicated what we had done this year. I don't want to just put down the full $1500 without there being a place to show all the improvements we had done or did ourselves. Seems like a red flag for an audit.

The best thing about all the improvements is that we are sure to have much lower heating bills even with having to buy part of this winter's wood supply.

Just list them on a separate sheet of paper and include it with the Form 1040. Indicate the line number where you took the credit on the same sheet of paper.

But why worry about an audit in the first place? You ain't Bernie Madoff I presume. They actually haven't caned a taxpayer in his living room since 1996. I take "gray area" deductions all of the time. If they happen to disallow something they send you a bill for penalties and interest. Neither one excessive.

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