By Adam L. Kroft, CPA
Adam L. Kroft, CPA, Supervisor, works in the tax services group and practices in the areas of income tax preparation, payroll and sales tax return preparation, and bookkeeping. For guidance on the tax-extenders provision for energy saving items, or tax preparation, contact Adam L. Kroft, CPA at 315.701.6340 or firstname.lastname@example.org.
In December, Congress passed a “tax-extenders” provision for energy saving items added to your primary residence, such as windows, insulation, roofs and doors. Accordingly, you are allowed a 10% credit, up to a maximum of $500. This is a cumulative credit so any credit that you took in the past counts against the $500. This was a benefit in years before 2018, but was unavailable for your 2018 tax return.
Now, with the passage of this “tax-extenders” provision, this not only relates to 2019, it also relates back to 2018! Therefore, if you invested in energy saving property in 2018, and were unable to take the credit, please let us know so that we can amend your 2018 tax return and claim the credit up to $500.
Also, be sure to let us know if you invested in this kind of property in 2019 and we will include this credit in your 2019 tax return.