Don’t Forget to Claim Your Energy Tax Credits

While the energy tax credits may be small, they are much better than a tax deduction, which only reduce your taxable income. You can get a dollar for dollar reduction. So, if you get $400 in tax credit, you will pay $400 less in taxes. Just keep-in-mind, the credit only covers 10% of the cost, so you have to spend $4,000 to get $400. And, there is a $500 lifetime cap. If you have already received a $500 tax credit, you are no longer eligible for more energy tax credits.

Another thing to look for is the energy-efficient improvements that meet IRS energy-efficiency standards. In some cases they will approve installation labor costs.

Items covered for installation include:

HVAC Systems

Biomass Stoves

Non-Solar Water Heaters

Items not covered for installation include:

Roofs

Windows

Doors

Insulation

Skylights

Here’s a list of real estate tax deductions you may also want to take a look at:

Casualty, Disaster and Theft Losses

State Sales Tax Deductions

Refinancing Points

Location is everything – Salma Dhanji is here to help you navigate the today’s real estate market and enjoy Florida’s distinctive lifestyle.

Originally posted at:

http://www.parklandflhomesblog.com/tips-and-advice/dont-forget-to-claim-your-energy-tax-credits-286/