The question came up as to whether the investment energy credit applies
to rental real estate. It should, but I haven't been able to find any >specific authority.
The short answer is that the taxpayer may take the credits if he uses
the home as a primary residence. In the case of a second home, certain >credits apply but others do not. If the taxpayer making the qualifying >improvements is the taxpayer,
he may take the applicable credits. If the
landlord made the improvements, there are no credits available to take.
Stuart O. Bronstein <spamtrap@lexregia.com> wrote:
The question came up as to whether the investment energy credit
applies to rental real estate. It should, but I haven't been able
to find any specific authority.
I'm not sure what credit you are talking about.
This is what I found:
IRS releases frequently asked questions about energy efficient
home improvements and residential clean energy property credits
IR-2022-225, December 22, 2022 https://www.irs.gov/newsroom/irs-releases-frequently-asked-question s-about-energy-efficient-home-improvements-and-residential-clean-en ergy-property-credits
That links to this:
Frequently asked questions about energy efficient home
improvements and residential clean energy property credits
FS-2022-40, December 2022
https://www.irs.gov/pub/taxpros/fs-2022-40.pdf
See the section on Qualifying Residence.
The short answer is that the taxpayer may take the credits if he
uses the home as a primary residence. In the case of a second
home, certain credits apply but others do not. If the taxpayer
making the qualifying improvements is the taxpayer, he may take
the applicable credits. If the landlord made the improvements,
there are no credits available to take.
I hope you weren't asking about something else entirely different.
"Adam H. Kerman" <ahk@chinet.com> wrote:
. . .
I hope you weren't asking about something else entirely different.
Actually I am talking about something entirely different. I'm talking
about the investment tax energy credit under section 48 of the Tax
Code. This is not for a principal residence but for rental property.
I looked at the instruction for Form 3468. It only refers to rental
property when talking about qualified rehabillitation expenditures,
and that particular credit is only available for certified historical >structures. I suspect this means that all rental properties qualify
for the energy credit because that limitation is not present. But I
haven't been able to find anything specific.
Stuart O. Bronstein <spamtrap@lexregia.com> wrote:
"Adam H. Kerman" <ahk@chinet.com> wrote:
. . .
I hope you weren't asking about something else entirely
different.
Actually I am talking about something entirely different. I'm
talking about the investment tax energy credit under section 48 of
the Tax Code. This is not for a principal residence but for
rental property.
Sorry about that.
I looked at the instruction for Form 3468. It only refers to
rental property when talking about qualified rehabillitation
expenditures, and that particular credit is only available for
certified historical structures. I suspect this means that all
rental properties qualify for the energy credit because that
limitation is not present. But I haven't been able to find
anything specific.
I found this on page 3 of the instructions. Does this apply to
your situation?
Part I--Information Regarding the
Election To Treat the Lessee as the
Purchaser of Investment Credit
Property
Generally, for purposes of eligibility for and figuring the
amount of the investment credit, a lessor of property may
elect to treat the lessee as having acquired the property.
Once the election is made, the lessee will be entitled to an
investment credit for that property for the tax year in which
the property is placed in service and the lessor will not be
entitled to such a credit.
If the leased property is disposed of, or otherwise ceases to
be investment credit property, the property will generally be
subject to the recapture rules for early dispositions.
The lessor will provide the lessee with all the information
needed to complete lines 11h and 11i, if applicable.
For information on making the election, see section 48(d) (as
in effect on November 4, 1990) and related regulations. For
limitations, see sections 46(e)(3) and 48(d) (as in effect on
November 4, 1990).
"Adam H. Kerman" <a...@chinet.com> wrote:
Stuart O. Bronstein <spam...@lexregia.com> wrote:
"Adam H. Kerman" <a...@chinet.com> wrote:
Actually I am talking about something entirely different. I'm
talking about the investment tax energy credit under section 48 of
the Tax Code. This is not for a principal residence but for
rental property.
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