Used stove, new stove pipe....tax credit?

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evamommy

New Member
Jul 7, 2010
1
nw missouri
I am selling my used Hearthstone Tribute, and was wondering on behalf of my buyer...
I know that the stove cannot qualify for the tax credit. But they have never had a woodstove in their home before, and so will need to install a new chimney/stovepipe. Will the chimney be eligible for the tax credit, does anyone know?

Thanks,
Carrie
 
Let me state up front that I have no professional knowledge of the answer.

It's an interesting question, though, so I've tried to use logic. If the purpose of the credit is to increase the number of fuel efficient stoves in use, I don't think the chimney would qualify. My reasoning is that, if you take the situation to extremes, assume that no new stove is ever sold again. Then assume that the used stove in question is resold hundreds or thousands of time, each time with a new chimney installation. If a new chimney alone did qualify for the tax credit, all of the available funding could be used up without one new, energy-efficient stove being placed into service.

As I said, I have no specific knowledge, but this line of reasoning suggests to me that the chimney alone wouldn't qualify.
 
Does the stove not qualify because of EPA emissions or because he is buying it used? My tax accountant said a used stove qualifies for the credit along with all the installation cost. I received my credit last year for my used stove and stove pipe.
 
If a tax accountant said a used EPA stove qualifies, then it makes sense that the chimney replacement and labor would qualify as well.
 
Archer39, you'd better hope you don't get audited.

This is from the Bill, found at http://www.irs.gov/pub/irs-drop/n-09-53.pdf

Part 3, Section 2 .05 (1):
"A taxpayer may claim a credit... only if each of the following requirements is satisfied:
(b) The original use of the item commences with the taxpayer."

If you buy a used stove, you're not the original user, and you can't claim the tax credit. Stove pipe, chimney, etc. only qualifies if the stove does, so your buyer's used stove installation is on his nickel.
 
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