Bio Mass Stove for energy credit

[Peachie]

Have any of you had anyone have the energy credit and it not be worth anything on the tax return? Yesterday, My client comes in beaming so brightly because she bought this stove and knew she could get 30% of her purchase price back. Told her she was absolutely correct but there's one caveat--you must have taxes to use it against as it's a nonrefundable credit.

Well, guess what-that $1100 was a complete waste. She got to use not one bit of it. She's low income with high medical bills. By the time the itemizing and personal exemption was complete--she owed zero taxes. She couldn't believe it. I asked her if she would have purchased the stove were it not for the rebate and the nice heat she's getting from it--she said no.

This is my sad story of the day. Any of you have others?

Peachie

[Larmil]

Have any of you had anyone have the energy credit and it not be worth anything on the tax return? Yesterday, My client comes in beaming so brightly because she bought this stove and knew she could get 30% of her purchase price back. Told her she was absolutely correct but there's one caveat--you must have taxes to use it against as it's a nonrefundable credit.

Well, guess what-that $1100 was a complete waste. She got to use not one bit of it. She's low income with high medical bills. By the time the itemizing and personal exemption was complete--she owed zero taxes. She couldn't believe it. I asked her if she would have purchased the stove were it not for the rebate and the nice heat she's getting from it--she said no.

This is my sad story of the day. Any of you have others?

Peachie

Not today - But I have a client who was a first time home buyer. He fully expected the $8,000 credit. The only problem was he bought the home from a partnership which consisted of his mother and her two sisters.

[dkss]

I have had a few people who could not use the energy credit because they owed no tax. Some understand the concept some do not.

I also had one guy with a FTHBC - he bought the house for $6000 and thought he would get $8000! LMAO!

Debbie

[superman]

The owner of the building where I rent my office asked earlier in the year about the credit for a hvac unit he put in his house. It went something like this the sales guy said I get $1500 back on my return for putting this in my house I tell him it is a credit against tax due he said I never owe tax anymore!! Sorry you do get it. So he asks around and the only guy that says he gets it is the sales guy that he called back after it is already installed. I then tell him maybe the sales guy does taxes on the side he laughs.

I guess he knew that he had been sold a line of you know what.

Superman

[RLymanC]

Enery Credit

I have a client that is livid about the credit. He purchased 35,000 worth of deductable items, sales person told him 30% WOULD BE DEDUCTABLE on his tax return.

WHAT....only $1500. HOW COME,,,I was told that I would get my taxes reducded by $10,500. His understanding of the $1500.00 limit is LIMITED. Not fun.

[joanmcq]

Well if the items were solar panels, yes, he'd get that much of a credit (against his taxes mind you). I'm glad most of my clients are well educated. And I'm educating them more and more as time goes on. As in 'call me before you do anything tax oriented!'.

[Peachie]

Now this is

I have had a few people who could not use the energy credit because they owed no tax. Some understand the concept some do not.

I also had one guy with a FTHBC - he bought the house for $6000 and thought he would get $8000! LMAO!

Debbie

just too darn funny Debbie. Our clients. can't live with or without them.

Peachie

[tpnl]

We all know . . .

that sales people are telling what they want consumers to believe to get that sale. Then the consumer is made at us.

An elderly couple waterproofed their basement for $15000. The basement people told them it qualified for the 30% credit. I called the basement people and only about $750 of the insulation qualified for the 10% credit. Couple was upset. I told them to call the basement people and vent their frustration. Basement people called me. They said they told the couple to consult their tax professional for exact specifications on the tax credit. I asked "Did you tell them that before or after the basement work was done?" Silence on the other end of the telephone.

[dyne]

The $1500 energy tax credit is a LIFETIME LIMIT. So taxpayers who claimed this
$1500 credit on their 2009 tax returns will be allowed NOTHING on their 2010 tax
returns for further expenditures which would otherwise qualify. We need to ADVISE
our clients of this and WATCH for this issue when preparing the 2010 tax returns.
This limit does NOT apply to geothermal heat pumps, small wind turbines and
solar energy systems for which there is NO upper limit for the credit.