Energy Credit

[JG EA]

I have a couple of situations I need to think about - any help will be appreciated.
1. Taxpayer buys qualifying property for their home in 2009. Taxpayer sells the home in the fall of the year. So, it was their

home located in the United States in 2009.

And it was their main home

Your main home is generally the home where you live most of the time.

And they did live there most of 2009. So can you see any problem for selling during the year?

Quotes from Form 5695 instructions.

2. Taxpayer buys windows at a yard sale. They were brand new, never used, and had the Energy Star stickers on them. The taxpayer put the windows in their home.

We do not have a list of qualified windows, doors, or skylights.

You can find the U-factor and SHGC on the National Fenestration Rating Council (NFRC) label. See an example of the NFRC label. NFRC is the only federally recognized organization for determining the energy performance of windows, doors and skylights. Please see the NFRC website for information concerning product performance.

So if this label was on them - will that work?

Quote from Energy Star

[Gretel]

Part of no. 2

Notice 2009-53 states that if windows etc. are bought before 6/1/09 the Energy Star label is sufficient. I assume in that case it doesn't matter if they come from a yard sale.

It gets trickier if the purchase happened after this date. I believe a manufacturer certificate is required then.

[S T]

Hmm

All of the above seem to meet the "Must be an existing home & your prinicpal residence criteria"

From IRS.gov

For property purchased before June 1, 2009, homeowners generally can rely on the manufacturers’ certifications and Energy Star labels that were available at the time for those products. Manufacturers have been advised that they should not continue to provide certifications for property that fails to meet the new standards. The IRS has issued Notice 2009-53 that will allow manufacturers to certify that their products meet the new standards. Please note, not all ENERGY STAR qualified products qualify for a tax credit. For detailed information about qualifying improvements, visit the U.S. Department of Energy’s EnergyStar Web site and the EnergyStar Frequently Asked Questions site

As Gretel posted and referenced, Maybe the "key answer" here is whether or not your t/p purchased prior to 6/1/09 at the "garage/yard sale"

Sandy

As you know the credit is only allowed on the "cost of the Windows" - No installation costs are included.

Also, according to what I have read, the Homeowner needs to have a receipt for the purchase along with all window labels and stickers to apply for the credit. (Another file folder

I was not successful in locating info regarding the purchase at a garage or yard sale (if that makes any difference)

[BHoffman]

I wonder if yardseller might be also be thinking of taking the tax credit....

[S T]

Probably

The original purchaser also has the "original receipt".
Wonder if a "yard sale" receipt will work in this circumstance?
One of the criteria is to also save the "Stickers and Labels" Energy Star, etc.
Wonder how many t/p's do that?

S

[JG EA]

Thanks very much. Date of purchase? I didn't ask. Save the sticker? I doubt it but I'll check. I really appreciate all the help.

I am adding a note here: I didn't think through all of this, you gave me many ideas to follow. I really appreciate this board and the care used in answering questions.

[Lion]

Save?

By the time I scrap stickers off, they're in no shape to save!

[taxea]

They do need the invoice for the purchase. My thought is, although the windows were never installed, the credit is intended for the original purchaser.