Tax Time for me....and YOU!

[Jackman]

I have a question for those of you who know tax stuff. I just bought a house last year and there is a section for energy efficient improvements on the tax form that I don't quite get.

Can I deduct the high efficient gas dryer and the high efficient washer I bought? How about my highly efficient EPA approved fireplace insert. They all save me a ton but I don't know if I can deduct this stuff. The tax laws aren't in english for me...I'll stick to boats and stay away from the taxes!

 

[skrmetta90]

Your washer and dryer are out (from my interpretation of the code). The credit (not a deduction, deductions adjust your tax base and credits are direct reduction in the amount of tax you pay- which are better) is geared toward improvements or modifications that are more efficient at heating and cooling your primary place of dwelling. The equipment must have some sort of manufacturer statement to the effect that it is qualified energy property and it complies with the IRC, however, it's not necessary to include this with your return. You will need to have it if you get audited. You can take a credit up to $300 (I believe this is still the amount for residential energy property) which must be met by the acquisition of the property only, installation cannot be included. There are additional credits for items such as storm windows and storm doors; and the amounts for these credits are different. I believe the total amount of credit you can take on energy efficiency items in or on your home is capped at $500, but once again, that number may have changed. Hope this helps!


IRS Circular 230 Disclosure: This communication is not intended to be a covered opinion as defined in Treasury Regulations and, therefore, is not intended to be used as, and cannot be relied upon as, a defense against penalties that may be imposed by the IRS.

 

[yachtbrokerguy]

If you bought a boat last year and you paid sales tax, you may be able to deduct the tax. Check with your accountant, if you live in one of the few states without an income tax, like Florida, it is a good deal.
The sales tax provision has expired for 2008 but might get revived to help with the economy, might have even been done this week.
I am a yacht broker, not an accountant, take my advice about boats, not taxes, so check your own accountant!!!
Tucker Fallon

 

[skrmetta90]

This deduction was extended to include the 2007 tax year. If you purchased a boat, as I did, please consult your tax professional. It will be included in your itemized deductions, which must be greater than the standard deduction in order to provide any benefit.