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Rakhi Vasavada
Rakhi Vasavada, Financial and Legal Consultant
Category: Finance
Satisfied Customers: 2574
Experience:  Graduated in law with Emphasis on Finance and have have been working in financial sector for over 12 Years
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I would like to speak to a tax professional via telephone

Customer Question

I would like to speak to a tax professional via telephone regarding our up and coming 2016 tax return and you must also be well versed on California's PACE program for homeowners that make energy saving improvements to their homes, i.e. removal and replacement of brand new energy qualifying HVAC systems, exterior doors, and the purchase and installation of a roof top solar system. Our income tax obligations will be vastly different than any other tax year we have ever had in our entire lives because we have income from a huge lawsuit settlement that we have to deal with and we have numerous deductions we will be claiming as well. Most of the discussion is going to center around our desire to purchase a solar system for our home and tax implications of withdrawing money from one of our retirement investment accounts, the amount will be equal to the estimated 30% federal income tax credit that will received when we install the solar system as this money will act as our down payment on the PACE loan. However, we fully intend to deposit this money back into our retirement investment account next year, as our tax burden for 2016 will decrease and the money we set aside for pay our taxes should decrease significantly with the 30% federal tax credit. We have already determined which solar company has presented the best proposal to us and I have discussed various financing options with the PACE bank that will be servicing our loan for the solar system and I just want to be sure that these transactions will not have a negative affect on both our 2016 and 2017 tax obligations.I know it is too late right now for telephone session, but I have some time tomorrow or Saturday to discuss these issues with a qualified tax professional who is also very experienced in the main tax issues that will be impacting our 2016 and 2017 tax returns, i.e. a large lawsuit settlement, the numerous deductions that we should be able to claim this year including and brand new HVAC system installed in September of 2015 and the possible future installation of a rooftop solar system on our home, which is tentatively planned to take place next month, and withdrawing funds from one of our retirement accounts to cover the down payment of the solar system, with the full intent replenish our retirement investment account when we receive the 30% federal income tax credit for installing a solar system on our home.Please let me know your availability to speak to me via telephone tomorrow or Saturday. Thank you.
Submitted: 2 months ago.
Category: Finance
Expert:  bkb1956 replied 2 months ago.

Welcome to Just Answer. My name is ***** ***** I will be happy to assist you.

Based on the information you provided in your question, it appears you may be under the impression that you will receive a refund in the amount of the 30% federal income tax credit. That is NOT the case. The amount of the credit DOES NOT get added to whatever refund amount to which you are entitled. In order to benefit from the credit, you first must have sufficient tax liability. In other words, you must owe at least as much money in taxes as the amount of the credit.

As you requested, I have made you an offer of a phone call. If you accept the offer, please provide your phone number and the best time to call you. I am located in Florida--Eastern time zone.

Thank you and best regards,

Barb

Customer: replied 2 months ago.
I ended being busy all day today. Are you available tomorrow?
Customer: replied 2 months ago.
PS - I have estimated our tax burden for 2016 to be approximately $40,000.00.
Expert:  bkb1956 replied 2 months ago.

Yes. I am available tomorrow.

Once you accept the Premium Service Offer, please provide your phone number and the best time to call you. I am located in Florida--so Eastern Time.

Expert:  bkb1956 replied 2 months ago.

If you estimate your tax liability to be approximately $40,000, then you will benefit from the credit.

Customer: replied 2 months ago.
I am already aware that we will benefit from the federal tax credit but our actual tax situation is a bit more complex than that. Since, you are located in Florida I have to ask if you are very experienced with California's PACE Program. I stated in my initial question that the expert I am seeking must be well versed in California's PACE program.
Expert:  bkb1956 replied 2 months ago.

I am familiar with California's PACE program, but since you have doubts, I will opt out so another expert can assist you.

Best regards,

Barb

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