Tax credit questions and what buddies CPA as said!

[Hiram Maxim]

Guys, last October (2009) my buddy bought my New Englander 13 when I bought My BK.

So fast forward he calls me and tells me today that his CPA says to claim it for next year (2010) because he didn't buy the pipe and install it. She says it will put up red flags!

Well I haven't talked to my CPA yet, but I'm in the same boat I was going to take the credit from 2009 and use the money for the stove pipe in 2010.

Anyone have an opinion or real world knowledge?
thank you,Hiram

 

[BrotherBart]

The CPA is correct. The law says it is eligible for credit the year it is placed in service not the year you bought it. Hard to do that without the pipe. And also it would preclude you from claiming credit for the pipe later.

 

[Hiram Maxim]

The CPA is correct. The law says it is eligible for credit the year it is placed in service not the year you bought it. Hard to do that without the pipe. And also it would preclude you from claiming credit for the pipe later.

BB,

Total bummer :-/

Seriously thanks for the quick reply. Looks like I'm going to have wait to get my refund on the stove until next year tax season when she is operational. Craaaaaaaaaaaap!

What about all the insulation I had blow in the attic and walls? Can I claim that this year.

Thank you, Hiram (who has Brother Barts Brown Englander model 30's sister) :cheese:

 

[Backwoods Savage]

Hiram, I can see no reason you can't claim the insulation. That is a total separate job from the stove and pipe. But, I'm not a CPA either...

 

[BrotherBart]

Yep. The insulation is good to go for the 2009 return if it was installed by year end.

 

[EatenByLimestone]

I claimed the new stove, but didn't claim the liner. *shrug* I'm still happy.

Matt

 

[Hiram Maxim]

Yep. The insulation is good to go for the 2009 return if it was installed by year end.

Yeah it was done in the late Summer 2009! Receipt's in hand!

 

[Fsappo]

Hiram! There are limits on the tax credits and some fall under the same energy category. The credit that applies to the wood stove maxes out at $1500 in credits or $5000 in purchases. There is a chance that if you claim the insulation in 2010 that it may take a chunk out of what you can claim on your taxes in 2011 for the wood stove. The wood stove (biomass stoves, etc) credit applies towards stoves put in service from 1/1/2009 thru 12/31/2010 only. I dont know if there are similar limits for the windows, insulation, etc credits. So you may be better off not claiming the windows, insulation until 2012. I havent read the tax code for those other improvements. So my suggestions should be confirmed in the event I am leading you towards a circumnavigation or loophole. For some, this may be ok, to others who render unto Ceasar, etc, it may not be on the level.

 

[Hiram Maxim]

Hiram! There are limits on the tax credits and some fall under the same energy category. The credit that applies to the wood stove maxes out at $1500 in credits or $5000 in purchases. There is a chance that if you claim the insulation in 2010 that it may take a chunk out of what you can claim on your taxes in 2011 for the wood stove. The wood stove (biomass stoves, etc) credit applies towards stoves put in service from 1/1/2009 thru 12/31/2010 only. I dont know if there are similar limits for the windows, insulation, etc credits. So you may be better off not claiming the windows, insulation until 2012. I havent read the tax code for those other improvements. So my suggestions should be confirmed in the event I am leading you towards a circumnavigation or loophole. For some, this may be ok, to others who render unto Ceasar, etc, it may not be on the level.

Franks,

Thanks for the information.
I contacted my CPA about the matter and when he gets back with me I will post what I find out.

I had Home Depot blow in another 10" of fiberglass into attic and bring it up to about an R-50. The taxable amount was about $600 bucks so at 30% its only $200. I also brought my exterior walls in the main room of the house (600sqft) out another 4" and used spray foam and R-15. I dont think it was more than say $200 total so at 30% only $60 for that! And I dont think you can count the drywall? I also spent around $600 on a new insulated energy star rated front door so another $200 in credit.

So if I understand it, I'm at about $600 return for insulation improvements?

My BK was $2750.00 so - 30% would be $825.

$600+$825=$1425

I would be just below the $1500 total/limit?

Did I pork the pooch on this?

Seriously thank you to everyone on this subject!

And Happy Easter, Hiram