4 replies to this topic

[Kea]

Client is living in his grandmother's house. They added insulation last year. May the client claim the energy credit on Form 5695? The instructions say that it has to be for his "main home" and defines that as where he lives most of the year. I see no restriction that he must "own" the home.

Thanks

[jainen]

>>I see no restriction that he must "own" the home.<<

Read the instructions to Form 5695: "your main home that you owned."

Or read the tax code Section 25C, "a dwelling unit located in the United States and owned and used by the taxpayer as the taxpayer's principal residence."

[Kea]

Thanks for the Tax Code Section jainen. When I read the 5696 instructions, this was all I saw for the definition of "home:"


Who Can Take the Credits
You may be able to take the credits if you made energy saving improvements to your home located in the United States in 2011.
Home. A home is where you lived in 2011 and can include a house, houseboat, mobile home, cooperative apartment, condominium, and a manufactured home that conforms to Federal Manufactured Home Construction and Safety Standards.
You must reduce the basis of your home by the amount of any credits allowed.
Main home. Your main home is generally the home where you live most of the time. A temporary absence due to special circumstances, such as illness, education, business, military service, or vacation, will not change your main home.

I was sure there "should be" an ownership requirement - I just didn't see it specified. Thanks for confirming.

[jainen]

>>this was all I saw for the definition of "home:"<<

Agreed--but see the definition of "qualified energy efficient improvements" on the same page, middle of right hand column.

[Kea]

Humm, just right across from where I was looking. I knew it had to be there & just didn't look far enough. Silly me - trying to figure what they considered a qualified home so I only looked under the part about the home.

Thanks again. Hope the rest of the season goes better.