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Paul is now part of the fourth generation in America that is involved in farming and hopes the next generation will be involved also. Through his blog he provides analysis and insight to farmer tax questions.
We had a reader ask the following question:
I am afraid that we do not have good news for Dave. The nonbusiness energy credit that he is asking about is normally claimed on form 5695 as he states, however, the type of costs that Dave is describing are restricted to existing homes. The credit is designed to help offset the cost of retrofitting an existing home with energy saving devices.
However, if Dave and his wife had put in any of the following devices:
Then Dave would claim those credits on form 5695, but it does not appear that these costs were incurred in their new house. These type of costs are allowed as a credit on both new homes and existing homes.
So, the bottom line is that the credits for the typical insulation, windows, doors, etc. must be on an existing home, not on a new home.
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