Monthly Archives: January 2012

Last Chance to Claim Home Energy Credits Expiring in 2011

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Cross References
  • IRC §25C, Nonbusiness Energy Property
  • Form 5695, Residential Energy Credits
The nonbusiness energy property credit is scheduled to expire at the end of 2011 so taxpayers only have a short time to take advantage of this credit.
The 2011 credit is more limited than in past years but is still available for qualifying improvements placed in service for the taxpayer?s principal residence located in the United
States before January 1, 2012.
Principal residence. The taxpayer must own the home and use it as a principal residence.
Credit. The nonbusiness energy property credit is a credit for making qualifying energy
efficient home improvements. The tax credit is 10% of the cost (up to $500), or a specific
amount, for qualified energy efficient improvements. It must be an existing home and the
taxpayer?s principal residence. New construction and rentals do not qualify.
Eligible items include:
Item: Credit Amount:
Biomass stoves $300
Heating, ventilating, air conditioning (HVAC) Varies from $50 ? $300
Insulation
10% of the cost, up to $500 (does not include installation costs)
Roof (metal and asphalt)
10% of the cost, up to $500 (does not include
installation costs)
Water heaters (non-solar) $300
Windows and doors
10% of the cost, up to $500, but windows are
capped at $200 (does not include installation
costs)?must be ENERGY STAR qualified
Energy Star. For 2011, an Energy Star label is generally sufficient proof that property is
qualifying property for the nonbusiness energy property credit.
Lifetime maximum credit. The lifetime credit for all types of property is $500. Therefore,
a taxpayer is not eligible to claim a 2011 credit if they claimed energy credits in previous
years that exceed $500. Additionally, the credit is nonrefundable and may not be carried
forward.
Basis. If a taxpayer receives a credit, the taxpayer?s basis in the qualifying property is
reduced by the amount of the credit received.
www.GEMMS.us

IRS Updates -Foreign Persons Receiving Rental Income From U.S. Real Property

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U.S. real estate professionals and rental agents/property managers are encountering an increasing number of situations that involve foreign persons? acquiring U.S. real estate as a part-time residence, for investment or in some cases to conduct a U.S. business.

Read more here -

http://www.linkedin.com/news?viewArticle=&articleID=864037108&gid=118813&type=member&item=76843219&articleURL=http%3A%2F%2Fwww%2Eintltaxcounselors%2Ecom%2Fblog%2F%3Fpage_id%3D9907&urlhash=Vev8&goback=%2Egde_118813_member_76843219

I like Herman Cain’s 9-9-9 plan but have one question.

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What happens to all the people that work in the tax fields if his plan is fully implemented?

That is, what happens to the employees at the IRS, the Big 4 firms, the HR Blocks, the people that make tax programs, the Post Office (the only thing they deliver any more is the tax returns), even Auditors (why would we need audits if taxes were flat) and the other local tax firms like us?

Here is the link to his plan - https://www.hermancain.com/999plan
Addition – 10/19/11 – Question raised to www.FORBES.com

http://www.forbes.com/sites/deborahljacobs/2011/10/19/cains-9-9-9-plan-has-tax-pros-worried-about-their-jobs/