Client's geo thermal was hit by lightning, had to be replaced. Cost approx. $20,000, will receive $1000 credit from electrical coop, and client had insurance on the pump with a deductible. Company putting it in is figuring his bill to send to insurance as 20,000 minus 1000 minus $5700(30 % credit) = $13,300 bill to send to insurance co. Client will then pay deductible and insurance will pay the rest. Doesn't sound right to me. Is the credit figured on the cost without any regard to electrical credits or insurance received? I think 30% would only apply to his actual out of pocket expense. Please correct me if wrong, maybe the installer is correct?
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has anyone had experience with the insurance reimbursement on a geo thermal heat. Will they get the credits again? only the out of pocket expenses? -
if anything this is a loss if he is out of pocket on the replacement. I don't think this would qualify for a tax credit again..Believe nothing you have not personally researched and verified.Comment
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I agree - from Form 5695 instructions pg 1:Originally posted by taxea View Post
Costs. For purposes of both credits, costs are treated as being
paid when the original installation of the item is completed, or, in
the case of costs connected with the reconstruction of your
home, when your original use of the reconstructed home begins.Comment
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