Attn Gene V: Roof credit for Vacation Home

[dyne]

See the instructions for form 5695, page 3 in the upper left under the heading:
Who Can Take the Credits which says "If less than 80% of the use of an item
is for non-business use purposes, only that portion of the costs that are allocable
to the non-business use can be used to determine the credit." Notice this does not
say 50% as I found before but instead says the allocable percentage can be used
to determine the credit.

[Gene V]

See the instructions for form 5695, page 3 in the upper left under the heading:
Who Can Take the Credits which says "If less than 80% of the use of an item
is for non-business use purposes, only that portion of the costs that are allocable
to the non-business use can be used to determine the credit." Notice this does not
say 50% as I found before but instead says the allocable percentage can be used
to determine the credit.

Thanks--I see that--however, does that apply to a vacation home?

[dyne]

It is NOT clear to me either. I believe I will refer such client to a CPA unless someone finds
the answer for us. I have researched until I am blue in the face and not yet found the
definitive answer. Does anyone know the answer?

[Gene V]

Form 5695

Looking at the first sentence, they say “improvements to your home” then they define home in the next paragraph as the place where you lived. My conclusion is that this credit does not apply to vacation homes.

Where it say if less than 80% of the use is for nonbusiness purposes. I believe they are still referring to your home. This could probably be use if your using part
Of your home for office in the home more then 20%
IMO

[dyne]

I agree that the credit is NOT allowed on a vacation home.
The first question on the form 5695 is were improvements or cost made to your MAIN home
located in the U.S?. Drake Tax Software will not allow ANY credit if this is answered:NO.
A vacation home would not be a main residence. This appears to disqualify the credit
entirely and that is my position on this issue.