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  1. #40
    Join Date
    Dec 2002
    Location
    Houston,Tx.
    Posts
    16,068
    Quote Originally Posted by rossb View Post
    Honestly, I may be more confused than ever on this thing now. Lets say we get a $5k refund next year, but pay considerably more in Fed income taxes. As long as we pay at least $6500 in fed taxes during the year, we'd get the whole $1500 back? Is that right?
    I will say this and I am sure you will appreciate it, please talk to your personal CPA or Accountant or Tax Attorney to get this info. I would not this early in the race take any word of anyone here period, this would be my best personal advise for you, and I really think Mrs Reb would probably somewhat agree.
    __________________________________________________ _______________________
    “Experience is a hard teacher because she gives the test first, the lesson afterwards". - Vernon Law

    "Never let success go to your head, and never let failure go to your heart". - Unknown

  2. #41
    Join Date
    Mar 2009
    Location
    Central Texas
    Posts
    16
    Quote Originally Posted by Mr Bill View Post
    You said is perfectly "from your perspective" please be honest with me, do you feel everyone will feel the same as you about it? It is a little different feeling, when you really never psychically see the money for some folks.
    I absolutely have to agree with you on this.

  3. #42
    Join Date
    Mar 2009
    Location
    Central Texas
    Posts
    16
    Quote Originally Posted by Mr Bill View Post
    I will say this and I am sure you will appreciate it, please talk to your personal CPA or Accountant or Tax Attorney to get this info. I would not this early in the race take any word of anyone here period, this would be my best personal advise for you, and I really think Mrs Reb would probably somewhat agree.
    I gotta tell ya, I was alot happier 48hours ago with this whole buying a new system before I stumbled onto this whole Tax Credit thing!!!!!! Ignorance is bliss!!! LOL!!!

  4. #43
    Join Date
    Feb 2009
    Posts
    24
    I'm another consumer who has finally been bumped over the edge to invest in a more efficient system because of this tax credit. Probably the only good thing congress has done this year. We have been considering replacing our 80% furnace with a 95% unit. Its still a nice chunk of money and we won't get our money back in the tax credit for a year but it brings the end price down enough to be able to get our return in a decent number of years.

    As others have said it was a royal PITA to get details on the tax credit.

  5. #44
    Join Date
    Dec 2002
    Location
    Houston,Tx.
    Posts
    16,068
    Quote Originally Posted by rossb View Post
    I gotta tell ya, I was alot happier 48hours ago with this whole buying a new system before I stumbled onto this whole Tax Credit thing!!!!!! Ignorance is bliss!!! LOL!!!
    Yep, there are 3 sides to every story as you have witnessed here, my side his side and the right side. I try my best to lean closer to the right side. I know there is already going to be a lot of disappointed folks in this, so we need to give them the complete-real, honest info on this and have zero tolerance to anything else, if were going to hold on to any integrity in our industry at all. Yes I would like to sell a 100 systems this year, but not at the cost of my customers ignorance, but then again I am of a different breed.
    __________________________________________________ _______________________
    “Experience is a hard teacher because she gives the test first, the lesson afterwards". - Vernon Law

    "Never let success go to your head, and never let failure go to your heart". - Unknown

  6. #45
    Join Date
    Apr 2005
    Location
    N. E. Missouri
    Posts
    9,750
    Quote Originally Posted by rossb View Post
    Honestly, I may be more confused than ever on this thing now. Lets say we get a $5k refund next year, but pay considerably more in Fed income taxes. As long as we pay at least $6500 in fed taxes during the year, we'd get the whole $1500 back? Is that right?
    I'm not sure what you're saying.
    If Uncle Sam were to normally keep some of the amounts you paid in during the year to federal income taxes, or at the filing date you actually owe more money than you paid in during the year then the credit may be able to help you.
    If you already qualify for Earned Income Credit then NO
    If someone's system qualifies for the credit and they actually have a tax liability at the end of the year, a non-refundable tax credit reduces the liability $ for $. The tax credit is 30% of $5,000 max qualifying system for a total maximum credit of $1500.00

    Here are a couple of places to research: http://energystar.custhelp.com/cgi-b...ted=1183398502

    http://www.usatoday.com/money/perfi/...ficiency_N.htm
    http://energystar.custhelp.com/cgi-b...p_new_search=1

    Anyone with questions regarding their own tax liability or refunds should really talk to a qualified accountant or CPA. Everyone's situation is different, the only thing I'm trying to point out here is that it is not a rebate. People seem to be getting the idea you automatically get this $$ from the government if you buy a qualifying system and that just isn't so.
    Do not argue with an idiot. He will drag you down to his level and beat you with experience.

  7. #46
    Join Date
    Apr 2005
    Location
    N. E. Missouri
    Posts
    9,750
    I'd like to qualify that previous post.

    While it is true that the credit isn't automatically money from the government for upgrading equipment it sure should be! If the American people aren't deserving of such a program then Wall Street, GM and the Big Banks sure as diddly AREN'T!
    Do not argue with an idiot. He will drag you down to his level and beat you with experience.

  8. #47
    Join Date
    Feb 2009
    Posts
    24
    So here is another question. Whats the cost basis upon to ask for 30% back. For example is the base price on a new furnace is $4000 and then you add on extra warranty and a service plan which takes you up to $5000. The final bill from the contractor is $5000 even through only $4000 was for the actual furnace. Which number do you use when filing with the IRS for your 30% Tax Credit?

  9. #48
    Join Date
    Apr 2005
    Location
    N. E. Missouri
    Posts
    9,750
    My understanding is the ENTIRE cost of the installed system.

    from this link: http://www.usatoday.com/money/perfi/...ficiency_N.htm
    However, if you buy a new air conditioner, furnace, heat pump or boiler that meets the energy-efficient guidelines, you can include the cost of installation in calculating the credit.
    Do not argue with an idiot. He will drag you down to his level and beat you with experience.

  10. #49
    Join Date
    Feb 2009
    Posts
    110
    Quote Originally Posted by rossb View Post
    Honestly, I may be more confused than ever on this thing now. Lets say we get a $5k refund next year, but pay considerably more in Fed income taxes. As long as we pay at least $6500 in fed taxes during the year, we'd get the whole $1500 back? Is that right?

    You need to check with your accountant, but if your tax liability is more than $1,500 as determined by your return, then you should get the credit. How you get the credit depends on how your witholdings or installments have been paid to the government. It has nothing to do with how much refund you expect.

    Your witholding (amount deducted from pay) is an estimate of the tax you will owe. The refund or payment come April 15 is just a true up of the actual tax liability as calculated by your return against the estimated liabilities your witholding was based on.

    If you owe money after your tax return, the $1,500 credit will reduce the amount you need to pay and you will get a refund for any difference if you have more that $1,500 in tax liability after other deductions and credits.

    If you are getting a refund, your refund with be $1,500 larger provided the $1,500 does not reduce your tax liability past zero.

  11. #50
    Join Date
    Feb 2009
    Posts
    110
    Quote Originally Posted by Mr Bill View Post
    Again "for the record" I am not condemning the credit "said that once already for the in between line readers" all I am saying is it's mostly for the rich. I am a very opened minded person, and all ears, please explain to me the best you can, how this will benefit the working man in today's economy, I'm listening.
    I have said this before in other posts, I agree and think the criteria are too strict. It's only the expensive high end stuff that qualifies. They should have made all Energy Star stuff eligible to avoid confusion. Since most people don't have Enegry Star gear, efficiency would be improved and more people would get the credit and more systems sold, etc.

    You need to be able to afford a high end system up front and be able to wait a year for the money back. With the lack of credit and financing in the market today, there are few families that can drop that kind of money on a high end system. Food and shelter are more important.

    At least it encourages those that can afford it to get off the fence and generate more work for you guys and more demand for the manufacturers.

  12. #51
    Join Date
    Mar 2009
    Location
    Central Texas
    Posts
    16
    Quote Originally Posted by mrs reb77 View Post
    I'm not sure what you're saying.
    THat makes two of us!!!

    I do my own taxes, do not have an accountant. I have made a call to hook me up with an accountant to get some info.

    I did one other "excercise" on this tax credit thing, today. I got to looking at the energy credits that were offered in 2008. Other than the total limits, the 30% part looks the same. I went back & opened up my 2008 return and filled in the form 5695 with a $5000 total expense under one of the sections in the form. It gave me a $1500 credit and bumped the amount of my return up $1500. I have not used any credits prior, so I hope this little excercise might mean it's all good or me. My tax situation really does not change from year to year....hopefully.

    Maybe I can get some info tomorrow from an accountant to be sure.

  13. #52
    Join Date
    Dec 2002
    Location
    Houston,Tx.
    Posts
    16,068
    Has anyone here even considered the amount of tax your county will "up you" on your home for this improvement? when you pull a permit to do a job there is a record of an improvement to your property, and will normally reflect on your appraisal the following years to come, this is the way it works in Houston, but I only look for obstacles I forgot, good thing someone looks for the obstacles I guess.
    __________________________________________________ _______________________
    “Experience is a hard teacher because she gives the test first, the lesson afterwards". - Vernon Law

    "Never let success go to your head, and never let failure go to your heart". - Unknown

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