Korene's Blog

Are You Taking Advantage of
Existing Homeowners Tax Credits?

I was talking to a client of mine the other day.  Naturally, our topic of conversation got to the economy and of course the problems of homeowners.  One topic lead to another until we were discussing the Tax Credit for First Time Home Buyers.   You know you can not leave an opening like that for me...I will jump right through it most every time.

I have had a page on my website since early this year that talks about and lists a number of the tax credits that are available for existing homeowners. Even though energy prices have come down some, we should continue to think about going green and energy conservation. The IRS is giving enticements to homeowners to make energy efficient  improvements in their homes.

For a complete list of Energy related credits such as new heat pumps and Hybrid cars etc, Click on  Energy Related Tax Credits, in the ENERGY CONSERVATION section in the Library below.

In last year's stimulus package, taxpayers are providing incentives to each other for a 10% tax credit of the cost of new windows, doors, roofing, insulation, furnaces, air-conditioning systems and heat pumps. The old rules had a lifetime maximum of $500 total credit.

The remodeling industry rightly said the meager 10% credit was not enough reason to undertake major renovations. As you may know a tax credit lowers your total tax due dollar for dollar. If you owe the IRS $500  and have a $200 credit, that $500 gets lowered to $300. A tax deduction, however means you can reduce the amount of taxable income that you owe taxes on. The real benefit is seen after your apply your tax bracket. Anytime you figure it out, a Credit is better than a Deduction.

In order to both increase economic activity (remodeling) and expand energy efficiency, the tax credit for homeowners is now at 30% of the cost. It also tripled the lifetime maximum to $1,500. It is retroactive from Jan 1, 2009 and expires at the end of 2010.
 
For specific information on new Windows and Doors CLICK HERE

 The new provisions also apply to newly added systems such as solar-energy panels, water heaters and geothermal heat pumps.

A lot of what is included in the above actions are considered "energy Star" approved. You can get a better picture of what is and is not covered at http://www.energystar.gov/index.cfm?c=products.pr_tax_credits

Korene Clopine-Seaman, CMPS, CMA, RRDS, LMB
Senior Mortgage Banker
Pacific Coast Mortgage, Inc
6991 East Camelback Road, Suite C-250
Scottsdale, AZ 85251
BK# 0905081
Direct Phone 623-340-0934
Direct Fax 623-218-1807
Free 24 Hour Consumer Tip Hot line 800-466-2531
Office Message Phone: 480-481-2800 Please leave a message for Korene
korene@klcsloanteam.com
www.klcsloanteam.com
www.NARLO.com/30326