My Kozyheat Z42 qualifies for the tax credit. I purchased it in October of 2008 - but it was not installed until late December 2008. Since this new IRS ruling came into effect in June 2009, do you think I can claim my stove credit on this years taxes? Anybody else in this boat?
Tax Credits
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Llamaman said:
I believe it is a combined credit, not to exceed $1500. You should check with your accountant to be sure.
BrotherBart said:
This quote follwing from
(broken link removed)
The IRS defines "placed in service" as when the property is ready and available for use. It's not when you purchase product, but the day installation is complete, and you are able to use your new product.
I believe it is based on purchase date not installation date.
http://www.irs.gov/pub/irs-drop/n-09-53.pdf
http://www.irs.gov/pub/irs-drop/n-09-53.pdf
wsorg said:
See Section7
.04 For amounts that are paid or incurred in taxable years beginning before
December 31, 2008, with respect to property placed in service in calendar year 2009,
the credit is computed in accordance with section 2.02 of this notice
And as far as I can see all 2.02 says is that the changes that were made do not extend to property placed in service in 2008
But that's goverment gobble-de-gook for ya - call 'em - they have a special phone tree option for these new credit.
szmaine said:
Oh, and aslo wanted to mention for anyone seaching the topic...
The credit is NOT refundable like the housing credit - if you have small to no tax liability - it won't help you much.
So lets say I purchased my liner and insulation kit before Jan 1 2009 but purchased my stove after Jan1 2009. Placed them both into service during 2009.
I installed it myself so no receipt avail from a sweep or shop. Would I be able to claim the cost of both the stove and liner/insul kit against the 30percent credit ?
Also purchased several hundred dollars worth of supplies to complete the install. Can this cost also be included?
I'm looking to leverage the entire 30percent or 1500 back from Uncle Sam so I need to reach 5000 total..
I installed it myself so no receipt avail from a sweep or shop. Would I be able to claim the cost of both the stove and liner/insul kit against the 30percent credit ?
Also purchased several hundred dollars worth of supplies to complete the install. Can this cost also be included?
I'm looking to leverage the entire 30percent or 1500 back from Uncle Sam so I need to reach 5000 total..
bren582 said:
OK - me again -
I called them because it fun talking to IRS, it's sort of like talking a BORG/Sybil hybrid..
This unit I spoke with proceeded to look up what DOE/Enerystar had to say which I already knew and read to it.
It said they would go with that because it was "the GOV".
I asked "what about this 2009-53 Notice Sec. 7 pats .01 and .04" - it ask me to read it aloud....
It said "ok, we have to go with that then" I say "ok, but what does it mean?"
This unit finally admitted it didn't have a clue and that the form (5695) used to claim these credits wasn't even finished yet.
Sooooo, the answers to all your questions will be answered when you file your taxes.
Ahhhhhh!
The "help line" guys at the IRS usually don't know any more than you, and often they give incorrect answers to questions. I'd say if by any stretch you think you can legally claim anything that gives you a more favorable tax rate, just do it, and let the IRS determine if you did something wrong later.
The BI Guy said:
I actually think that not only is the $1500 combined (windows, doors, wood stoves), the credit cannot exceed $1500 for two years (ie, I don't think you can take a $1500 credit in 2009 and another $1500 in 2010).
I'm actually bummed about this - I didn't think that was how it worked until I had already ordered my windows. I'm getting my stove anyway, but I'll be loosing out on the credit.
I can't seem to find any mention of woodstoves on the version of Form 5695
that's in the Turbotax 2009 I just installed ...
that's in the Turbotax 2009 I just installed ...
It is a maximum credit of $1,500 over the two calendar years of 2009 & 2010. The effective date is the date the unit was placed into service (not the date you bought the stove). You can claim the cost of the stove, the cost of any supplies required to install the stove, and the installation labor itself. Keep your receipts as records.
I am a self employed builder/carpenter and installed my own stove, chim, etc. Is there any way I can claim the value of the install?
The IRS pdf is still a draft
(broken link removed to http://www.irs.gov/app/vita/globalmedia/5695.pdf)
But the 1040 instructions do mention biomass stoves, w/ no DRAFT watermark:
http://www.irs.gov/pub/irs-pdf/i1040.pdf
Maybe there will be a patch for your software???
Patience, I guess. The year isn't quite over yet.
(broken link removed to http://www.irs.gov/app/vita/globalmedia/5695.pdf)
But the 1040 instructions do mention biomass stoves, w/ no DRAFT watermark:
http://www.irs.gov/pub/irs-pdf/i1040.pdf
Maybe there will be a patch for your software???
Patience, I guess. The year isn't quite over yet.
[/quote]
I would do it by # of hours x hourly rate for carpenter,chim sweep or similar tradesperson in your area. I would guess this could be anywhere from $20/hr on up. Probably be a good idea to go on the conservative side. If you had never done anything like this before, you probably spent a lot of time figuring things out, which you shouldn't charge for.
Bottom line though is, Can you claim a value for self install? Something tells me that you won't be able to do this as you never laid out money for the install, and now you are trying to get a tax credit for money you never really spent.
That makes sense about not getting reimbursed for something you didn't pay out for. I spent a total of roughly 2500 dollars for the stove and chimney. My math tells me I should get a credit when I file for 750 bucks right? What is this about needing to come up to 5000?
regency said:
5000 is the max expense you could use to figure your credit. 30% of 5000 is 1500 which is the max tax credit. If you spent say $9000, you still can't get any more than $1500 tax credit.
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