Energy Credit for unmarried couple, question.

[Twin Turbo Z]

First time I have encountered this situation. Unmarried couple split the cost of new hvac system. From what I have read (5695 instructions) and make out of it, they can both claim the credit and not be limited to $500 total between the two.? Am I wrong ? I figured IRS would treat them as a married couple in this instance and limit it to $500 total. Thanks in advance.


Here is IRS instructions:

Joint occupancy. If you owned your home jointly with
someone other than your spouse, each owner must complete his
or her own Form 5695. To figure the credit, there are no
maximum qualifying costs for insulation, exterior doors, and a
metal or asphalt roof. Enter the amounts you paid for these items
on the appropriate lines of Form 5695, Part II. For windows and
residential energy property costs, the amount allocable to you is
the smaller of:
1. The amount you paid, or
2. The maximum qualifying cost* of the property 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.
*$2,000 for windows; $300 for energy-efficient building
property; $150 for qualified natural gas, propane, or oil furnace
or hot water boiler; or $50 for an advanced main air circulating
fan.

[kathyc2]

First time I have encountered this situation. Unmarried couple split the cost of new hvac system. From what I have read (5695 instructions) and make out of it, they can both claim the credit and not be limited to $500 total between the two.? Am I wrong ? I figured IRS would treat them as a married couple in this instance and limit it to $500 total. Thanks in advance.


Here is IRS instructions:

Joint occupancy. If you owned your home jointly with
someone other than your spouse, each owner must complete his
or her own Form 5695. To figure the credit, there are no
maximum qualifying costs for insulation, exterior doors, and a
metal or asphalt roof. Enter the amounts you paid for these items
on the appropriate lines of Form 5695, Part II. For windows and
residential energy property costs, the amount allocable to you is
the smaller of:
1. The amount you paid, or
2. The maximum qualifying cost* of the property 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.
*$2,000 for windows; $300 for energy-efficient building
property; $150 for qualified natural gas, propane, or oil furnace
or hot water boiler; or $50 for an advanced main air circulating
fan.

Maybe I'm not following what you are saying, but they each get the percent of maximum (or actual) to their proportion of cost. Say furnace costs 6,000 and they each pay 3,000. The equation would be 3000/6000 x 150 or $75 each.

[Twin Turbo Z]

Thanks for the reply. Figured it out. Same "limits" as if couple were married.