Nonbusiness energy property credit

[Dan]

Question 1: Can you take this credit if you are putting a new metal or asphalt roof on the home you live in but do not own?

The reason you do not own the home: There is a trust and your name along with your brother's name is in the trust to receive this home. You live in the home but your bother lives in another town.

Question 2: What happens if the trust finally deeds half of the home to you and the deed is recorded. How much can you take as credit to the question above?

Question 3: Does the roof need to be completed before you can take the credit?

Look for your reply! Thanks!

[Jack from Ohio]

1. No

2. No

3. Yes

4. The roofing materials must meet specific requirements to be eligible for the credit.

Click here for Energy Credit information is the site with all the specifics.

[Dan]

1. No

2. No

3. Yes

4. The roofing materials must meet specific requirements to be eligible for the credit.

Click here for Energy Credit information is the site with all the specifics.

Question 1: You have question 2 marked as no. Can you deduct 1/2 of the credit or $750 dollars if you get the roof on your half of the house by the end of year 2010?

Question 2: Do you need to own at least 1/2 of the house before 2010? What year?

Thanks for responding.

[Jack from Ohio]

Question 1: You have question 2 marked as no. Can you deduct 1/2 of the credit or $750 dollars if you get the roof on your half of the house by the end of year 2010?

Question 2: Do you need to own at least 1/2 of the house before 2010? What year?

Thanks for responding.

1. No Only the OWNER of the home may take the credit.

2. No See #1 Unless you were the owner before the upgrades were made, the amount is STILL $0

3. Yes

4. The roofing materials must meet specific requirements to be eligible for the credit.

Click here for Energy Credit information is the site with all the specifics.

IRS Special Edition Tax Tip 2009-12

Taxpayers who take energy saving steps this year may get bigger tax savings next year. The Nonbusiness Energy Property Credit, a tax credit for making energy efficient improvements to homes has been increased as part of the American Recovery and Reinvestment Act of 2009.

Here are seven things the IRS wants you to know about the Nonbusiness Energy Property Credit:

1. The new law increases the credit rate to 30 percent of the cost of all qualifying improvements and raises the maximum credit limit to $1,500 claimed for 2009 and 2010 combined.
2. The credit applies to improvements such as adding insulation, energy-efficient exterior windows and energy-efficient heating and air conditioning systems.
3. To qualify as "energy efficient" for purposes of this tax credit, products generally must meet higher standards than the standards for the credit that was available in 2007.
4. Manufacturers must certify that their products meet new standards and they must provide a written statement to the taxpayer such as with the packaging of the product or in a printable format on the manufacturers' Website.
5. Qualifying improvements must be placed into service after December 31, 2008, and before January 1, 2011.
6. The improvements must be made to the taxpayer's principal residence located in the United States.
7. To claim the credit, attach Form 5695, Residential Energy Credits to either the 2009 or 2010 tax return. Taxpayers must claim the credit on the tax return for the year that the improvements are made.

Here is the article