Tax Question

[McKraut]

It's that time of year to give more of my money to my friends in the government. I was reading that I can claim up to $300 of the cost of the EKO Biomass 60 I bought last year according to this:
(broken link removed to http://www.dsireusa.org/incentives/incentive.cfm?Incentive_Code=US43F&re=1&ee=1)
According to the IRS Form 5695 line 24b, the maximum I can claim is $150. Any of you folks tax wizards that would know how this works? The more of my money I can keep, the happier I am.

Thank you,

Bob

 

[Fred61]

According to the document it's a tax credit and not a deduction and may go on another form. Credits are always better than deductions because you get the full value off the bottom line of your tax due. If you haven't taken the full $500.00 allowed in the past for energy improvements you should be eligable. I will try to find out more about this and get back to you.

 

[Norwegian Wood]

It look like it's $300:

• Biomass stoves that use "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": $300

 

[McKraut]

It look like it's $300:

• Biomass stoves that use "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": $300

I agree with you that it should be $300. The IRS form says it's a maximum of $150....that's the problem. I love our tax system.

 

[McKraut]

According to the document it's a tax credit and not a deduction and may go on another form. Credits are always better than deductions because you get the full value off the bottom line of your tax due. If you haven't taken the full $500.00 allowed in the past for energy improvements you should be eligable. I will try to find out more about this and get back to you.

Thank you for taking the time to look into it.

Bob

 

[Fred61]

McKraut

Go to "irs.gov" and click on forms an publications (orange box on the left) then click on search, type in "form 5695" > go to page 2 and read instructions attached to the end of the form.The instructions include biomass burning units. It looks like you will be eligable for $300.00. It must be entered on line 24A.

You must have a a certificate from the importer. I think I downloaded my certificate from New Horizon's website when I did mine.

One thing tax preparers whine about is that people want a tax credit when they don't pay taxes so be sure you pay taxes before you apply for a credit.

 

[McKraut]

Fred61,

Thank you for looking into this for me. I really do appreciate the effort. I will take you advice and enjoy getting a little more money back. Yes, I do pay taxes so I will be able to apply for the credit.

Bob