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Merlo, Accountant
Category: Tax
Satisfied Customers: 9783
Experience:  25+ years tax consulting. Specializing in returns for US citizens living abroad
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Im an 85 year old WII veteran 100% disabled. I live alone

Resolved Question:

I'm an 85 year old WII veteran 100% disabled. I live alone here in PA in a house that I'm trying to sell. Last NOV(2008) I bought a house in TN using a GI loan. The purpose is to live with my son and grand children. My family now occupies the house - I will move there when this Pa house is sold.

I spent considerable money on storm windows, garage doors, insulation, even a new geothermal furnace on the TN house - some of it in 2008. Can I declare this for tax purposes even tho at this time the TN house is not my primary residence- but it was purchased to be that.
Submitted: 7 years ago.
Category: Tax
Expert:  Merlo replied 7 years ago.



If you are referring to the energy tax credits which are being offered, the home must currently be your primary home in order to qualify for claiming the credits. Also, expenses paid for energy improvements in 2008 do not qualify. The energy credits only apply to improvements made in 2009 and 2010.


However, even though you intend to make this your primary home, you may not claim these credits since it was not your primary home at the time these improvements were made.


If this was helpful please press the Accept button.


Thank youCustomer/p>



Merlo and 2 other Tax Specialists are ready to help you
Customer: replied 7 years ago.
The answer to my questions were incorrect!!!!!

U mentioned that energy improvements made in 2008 do not qualify - incorrect. SEE FORM 5695 for 2008

Also U mentioned that energy improvements must be on the primary home - incorrect. SEE FORM 5695 for 2009. A geothermal furnace heat pump can be deducted for a second home.

Sir, please credit my credit card with the $15 that U charged me.
Expert:  Merlo replied 7 years ago.



I am not the one who can personally issue you a refund. That is handled by the JA administrators. I will send them an email and ask them to issue a refund to your account. Please keep in mind it may take a couple of days for the credit to appear on your card, but rest assured I have requested a refund on your behalf.


I would like you to know that you just because Form 5695 exists for the year 2008, that was for carryforward credits only. If you look at page 3 of the instructions for that form, it clearly says "You cannot take the non business energy property credit for property placed in service in 2008".


There were credits available in 2007 and some taxpayers who could not use the entire credit in 2007 had to carry forward some of that credit to the 2008 tax year. And they do that by using the Form 5695. But energy improvements made in 2008 for a personal residence are not eligible for credit. The credits expired at the end of 2007 and were reactivated for 2009 and 2010.


As far as the geothermal heat pumps, you are correct that they qualify for credit even on a second home. I missed seeing that you had listed that as one of your purchases. Geothermal heat pumps, solar panels, solar water heaters and small wind energy systems are the only 4 energy improvements which are still eligible for credit even if they were made on a second home rather than on your primary home.