REsidential energy credit

[oceanlovin'ea]

My aunt just called and asked me a question. She had new storm windows and storm doors put in her house, new roof and some other repairs on her house done last year. It was done through the county and she didn't have to pay out any money but the county put a lien on her house. If she sells the house during a certain period, she has to pay them for the work done.

She wondered if she qualified for the energy credit. My first thought is no because she didn't pay for the improvements when they were done. But then maybe in a sense she did because she now owes the county money but doesn't have to pay them for it until she sells her house.

She is 79. so the chances are high that she might die and the house be sold before that time period expires and they would have to pay the county.

What are your thoughts?

Linda

[taxmom34]

we have a community grant program in our city that does this type of service. in addition to the repayment if house is sold part of it, if person stays in the residence for the allocated length of time they dont have to pay it back at all. i would say no to the energy credit

[veritas]

My inclination

is yes unless the debt is forgiven at some point.

Does interest accrue on the lien?

For instance in Oregon there is a property tax deferral for seniors. The property tax is considered paid when the lien attaches to the home.

[oceanlovin'ea]

1 yes and 1 no

1 yes and 1 no........any other opinions.

I will get more details from her when I call her back.

Linda

[Kram BergGold]

Another no vote

I was not going to respond with my baseless opinion but since yo asked I vote no.

[taxmom34]

it is paid for by a government (local) grant. she doesnt pay anything toward this expense unless she sells the property, then she pays back the grant, but not in the current year. she can take the credit the year she sells if it's available. my vote is still , no.

[Gene V]

How about if you buy your windows from (say Home Depot, etc.) no payment is due for 1 year from sale interest free or some other term. Are you allowed the credit, even if no payments are made this year?

[taxmom34]

home depot is not a grant, its a loan. you are in a contract to pay

[JohnH]

I'm leaning toward the "No" reply as well, but really can't put forth a good reason one way or the other - just instinct & intuition.

[JG EA]

How about if you buy your windows from (say Home Depot, etc.) no payment is due for 1 year from sale interest free or some other term. Are you allowed the credit, even if no payments are made this year?

Payrments to Stores (not through credit cards) are not considered paid until actually paid for other deductions - for instanace business deductions.

[oceanlovin'ea]

Thanks everyone

My opinion was no too. But I just wanted to make sure I wasn't missing something she should be entitled to.
I will call her tomorrow and let her know.

Linda