Energy Credit -Rental Property?

[zeros]

Does the Energy Credit apply to rental property? Client needs furnace in 2011. Other credits available?

[appelman]

I think not.

Unless it's for a solar, wind or geothermal system of some kind. At least that was the case for 2010, and I'm not aware of a change.

[spanel]

Plus they can "write" it off anyway... no credits far as i know.. depreciate it, be done with it.


Chris

[taxea]

I don't think any of the credits apply to furnace unless you are talking the appliance credits and those, I believe, are only for your primary residence. But it is certainly worth reading the regulations for yourself.

[S T]

If you "google" you will find that most energy credits do not apply for tax return credit for "Rental-IInvestment Property" - I believe they are mostly directed to residential property occupied by the Homeowner.

Sometimes there are rebates from the local Utility Companies that they taxpayer might check out, such as Gas company, and then even check out rebates from the Manufacturer or Distributor that might apply.

Of course if the owner were to receive some of those rebates, I believe the cost basis would have to be reduced for a capital improvement being depreciated.

Sandy

[FEDUKE404]

Nix on business

If you "google" you will find that most energy credits do not apply for tax return credit for "Rental-IInvestment Property" - I believe they are mostly directed to residential property occupied by the Homeowner.

Sometimes there are rebates from the local Utility Companies that they taxpayer might check out, such as Gas company, and then even check out rebates from the Manufacturer or Distributor that might apply.

Of course if the owner were to receive some of those rebates, I believe the cost basis would have to be reduced for a capital improvement being depreciated.

Sandy

I have a "creative" (and perhaps "slippery" ?) client who is already assaulting me with 2011 questions and very little official tax information (other than Form 5695) is currently out there. (Well, the contractor apparently seems to think he fits into that category.)

I tend to agree with Sandy that most of the federal credits cannot be used on business property since, in theory, you get to deduct those expenses anyway! The newest 2011 confusion is that some credits apparently are for a primary residence only and some others can include expenses for a "second home."

To further muck things up, NC has its own set of energy credit rules/forms which completely defy comprehension by any person of normal mental capabilities.

FE

[taxea]

I have a "creative" (and perhaps "slippery" ?) client who is already assaulting me with 2011 questions and very little official tax information (other than Form 5695) is currently out there. (Well, the contractor apparently seems to think he fits into that category.)

I tend to agree with Sandy that most of the federal credits cannot be used on business property since, in theory, you get to deduct those expenses anyway! The newest 2011 confusion is that some credits apparently are for a primary residence only and some others can include expenses for a "second home."

To further muck things up, NC has its own set of energy credit rules/forms which completely defy comprehension by any person of normal mental capabilities.

FE

I would as client where the "contractor" got his tax degree. Actually, I usually as the client to provide me with documentation from the "contractor or other" that the info came from so I can determine whether it applies

[AJsTax]

energystar.gov

The best resource for this information is still at Energystar.gov. find the "1040" button and click on it to see all the requirements to qualify for this year.
Most are still available, many with reduced rates. Some will qualify on first or second home, but not on a rental.
Why would you want a partial credit for something you can write off totally. And if it is personal property you can bonus depreciate 100% of it (for new items).