Effects of the new Stimulus Package

[noobs]

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.

That should be the least of our worries. Have you considered what our future tax liability is going to be for the bank, auto bailots and the stimulus plans?

[Mr Bill]

That should be the least of our worries. Have you considered what our future tax liability is going to be for the bank, auto bailots and the stimulus plans?

O yea! I know there is no comparison, but I just figured while we were all pouring out
our hearts here, we may as well get all the truth out....

[mrs reb77]

Many locations (ours included) don't have a permitting process in order to spy on you and raise your property taxes. The only permitting around here is for electrical upgrades or actual construction. THEN they spy on you and report to the assessor's office
Property taxes on our home raised the last two years in a row after reassessments (no upgrades performed!), d'ya think they might come back and lower the assessment since everyone's property is supposed to be 'worth less' now?

[mrs reb77]

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.

There, what he said! With real people words, not words from 'the irs'.

Ever notice when you type 'the irs' if you leave out the space it's 'theirs'?

[rossb]

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.

I think based on my little experiment and what you are saying here, I'm good on the credit. The problem for a contractor will be in being VERY careful in how they present this to a customer....no absolutes! Alot can happen during the course of year to change your liability status. Heck, I might even make money in the stock market this year and owe taxes on that!

[kmartj91]

when the Dems get through taxing us to pay for this stimulus and the bailouts the small companys are going to be forced to sale out

[heatpumpguru]

Watch out for AMT(alternative minium tax) people may not get it like me

[noobs]

Watch out for AMT(alternative minium tax) people may not get it like me

That's why it needs to be passed by an accountant or at minimum simulated in a Turbo Tax program. If you are considered "rich" by AMT standards and itemize deductions and have deductions for mortgage interest and others, you may hit the AMT floor before you can use the tax credit.

[rossb]

That's why it needs to be passed by an accountant or at minimum simulated in a Turbo Tax program. If you are considered "rich" by AMT standards and itemize deductions and have deductions for mortgage interest and others, you may hit the AMT floor before you can use the tax credit.

I think I'm pretty safe in saying that there will be some percentage of mighty irritated folks over this come tax time next season. I feel for you contractor guys in how you're going to have to explain/"sell" this.

[udarrell]

Since the tonnage needs to be below 4-Tons to qualify the unit for credit, everything possible should be done to get the load calc down to 3.5-Ton or less. Though retired, I need to read the new rules.

In many cases the duct system is under sized for 4-Ton & above residential systems. How many 4-Ton systems are delivering 3-Ton of cooling? Ah.
Click my name to access detailed web page info.

[motoguy128]

when the Dems get through taxing us to pay for this stimulus and the bailouts the small companys are going to be forced to sale out

Yes, business as usual by the fiscal conservatives was working so well. Deregulate, line the pockets of the wealthy in a hope the money will "trickle down"... which it clearly doesn't (as the lower and middles classes have shrunk over the last 25 years since "trickle down" started), and drop the fed rates and taxes so low that there's no longer any other way to stimulte the economy other than to borrow huge sums of money.

I don't nessesarily favor socialism, but those crazy, repressed, socialist Europeans have hgiher quality, more efficient healthcare, better education, and a more stable economy.


Back on topic... speaking as a non-pro, I suspect online sales of 95% Goodmans will take off.

[noobs]

Back on topic... speaking as a non-pro, I suspect online sales of 95% Goodmans will take off.

Maybe. I guess every few hundred will help, but those buying online and installing themselves or with friends will do it that way anyways, credit or no credit.

Personally I see more value in getting a professionally installed system with a warranty for 30% less.

[motoguy128]

Maybe. I guess every few hundred will help, but those buying online and installing themselves or with friends will do it that way anyways, credit or no credit.

Personally I see more value in getting a professionally installed system with a warranty for 30% less.

Oh.. I completely agree. I was just pointing out that this is a likely result of the stimulus... especially in more urban areas where the HVAC pros have more overhead, the online prices look pretty good. In smaller towns and rural areas, my complete Trane system cost me less than just the equipment prices alone for a comparable Goodman. There is still a sizeable mark-up through those online distributors. It just looks cheap after you take out labor...which includes overhead costs.