Energy Credit - Jointly Owned Home

[JohnH]

Taxpayer & his wife live in and jointly own a home with their daughter and son-in-law. They always split the interest & property taxes down the middle because their names are all on the mortgage and they pool their funds 50-50 to pay the mortgage.

This year they spent $9K for energy efficient windows and $7K for a qualifying furnace system, again paid from their pooled funds in 50-50 ratio. Does each family get the credit with a $1,500 limitation on their individual returns, or does each family only get $750 of the credit?

[Gretel]

Instructions form 5695 say the credit must be prorated.

[ChEAr$]

Instructions form 5695 say the credit must be prorated.

First question on top of form 5695 asks if expenditures were made for "main home".

[Jesse]

Instructions:

Joint occupancy. If you owned your home jointly, each owner must
complete his or her own Form 5695. Your credit is limited to the smaller
of:
1. The amount you paid, or
2. $1,500 multiplied by a fraction. The numerator is the amount you
paid and the denominator is the total amount paid by you and all other
owners.

[JohnH]

Funny how we just read right over these things when we're hurrying.
Thanks everyone.

It is their main home - I failed to mention that in the original post.
Looks like they would be limited to $750 each on the 5695 even if one family had bought the windows and the other family bought the furnace.

[ChEAr$]

John, I see now you immediately said that they live in and jointly own....
That should have alerted me to it being their main home.

Hmmm, I think I'm just a little tired.