energy tax cridit

[mpbarber]

Jurisdiction

Michigan

I am currently a resident of South Carolina. If I meet the "number of days" requirement (and obtain a Michigan driver licensed, etc.) to become a Michigan resident, can I then file my Federal Tax Return and claim the energy tax credit for the solar system I am having installed on my home in Michigan? I am currently a resident of South Carolina. I am retired. I am over 65.

 

[army judge]

You seek a dentist to address your dental problems.
You take your pet to a vet.
You consult a physician if you become ill.
You have a tax concern, which is best addressed by a CPA, the IRS, or a tax attorney (who'll be far more expensive than a CPA).

The answer to your question is too complex and important for strangers over the Internet.

 

[mpbarber]

You seek a dentist to address your dental problems.
You take your pet to a vet.
You consult a physician if you become ill.
You have a tax concern, which is best addressed by a CPA, the IRS, or a tax attorney (who'll be far more expensive than a CPA).

The answer to your question is too complex and important for strangers over the Internet.

Very true however, I have had such great results from this site, I always research the answers I get here and it isn't cheap with a CPA, almost impossible to get anyone on the phone at the IRS and a tax attorney is way to expensive for me. BTW, my dental problems, my pet health and my personal health risk factors are completely different issues than my taxes.

Thank you for your advise.

 

[adjusterjack]

it isn't cheap with a CPA,

Well, it could be a lot more expensive if you take the credit in error.

What I just read on the IRS website leads me to believe that the residency gimmick isn't going to work if the South Carolina home is your "main home" while this installation is happening in Michigan.

You really do need to consult a tax pro before you do something that will cost you even more in penalties.

I can't see where an hour of discussion should cost you very much. And, hey, you have two homes. You can afford it.

 

[mpbarber]

Well, it could be a lot more expensive if you take the credit in error.

What I just read on the IRS website leads me to believe that the residency gimmick isn't going to work if the South Carolina home is your "main home" while this installation is happening in Michigan.

You really do need to consult a tax pro before you do something that will cost you even more in penalties.

I can't see where an hour of discussion should cost you very much. And, hey, you have two homes. You can afford it.

Thank you for that information. Would you be willing to share where specifically you found the IRS information on their website.

My plan all along has been to change my residency PRIOR to the installation. I am not trying to do anything illegal nor do I see this as a "gimmick".

And with all due respect, you have no information regarding my financial situation.

 

[adjusterjack]

Would you be willing to share where specifically you found the IRS information on their website.

The instructions for the energy tax credit form:

Form 5695, Residential Energy Credits | Internal Revenue Service

And Publication 17 has additional information about "main home."

https://www.irs.gov/pub/irs-pdf/p17.pdf

Forms and publications for tax year 2017 aren't out yet but the information is likely to be the same.

My plan all along has been to change my residency PRIOR to the installation.

This appeared to imply that it was already in progress. Perhaps I misinterpreted.

the solar system I am having installed on my home in Michigan?

Changing residency for a tax benefit when you own two homes might not fly. What will you do next year if there is a tax benefit available for your SC home? Change back to residency in SC?

Might be a different story if you sold the home in SC.

I still say consult a tax pro.

 

[mpbarber]

The instructions for the energy tax credit form:

Form 5695, Residential Energy Credits | Internal Revenue Service

And Publication 17 has additional information about "main home."

https://www.irs.gov/pub/irs-pdf/p17.pdf

Forms and publications for tax year 2017 aren't out yet but the information is likely to be the same.



This appeared to imply that it was already in progress. Perhaps I misinterpreted.



Changing residency for a tax benefit when you own two homes might not fly. What will you do next year if there is a tax benefit available for your SC home? Change back to residency in SC?

Might be a different story if you sold the home in SC.

I still say consult a tax pro.

Thank you very much for the IRS site links.

I should have said that I am in the process of getting a solar system installed. I have already made the down payment, the company is in the process of obtaining the permits so I considered it in process.

I agree with you that this might not fly so that is why I am doing my due diligence to make sure I have the facts. The incentive for me to even consider this, after all, this is not a simple thing, is that since this is a tax credit it is a sizeable amount of money. Could be as much as $7,000 dollars to me in taxes that I don't have to pay.

I don't think I'm doing anything wrong here. The government created this program to encourage renewable energy and I find this is a way for me to not only help the environment but also to help myself financially.

As far as your question regarding whether or not I would do the same if there was a tax benefit to having my residence in South Carolina, it completely depends on the economics and the effort required to make the change.

$7,000 is a lot of money to me and if by gathering the information, making sure I have the facts, making sure I am not breaking any laws and making some paperwork changes can save me that kind of money, then yes, I am willing to do it.

 

[adjusterjack]

$7,000 is a lot of money to me and if by gathering the information, making sure I have the facts, making sure I am not breaking any laws and making some paperwork changes can save me that kind of money, then yes, I am willing to do it.

For a $7000 tax credit, go spend a hundred or two on a tax pro and make sure you are getting it right.

 

[mpbarber]

For a $7000 tax credit, go spend a hundred or two on a tax pro and make sure you are getting it right.

I was really hoping to get some answers from the folks on this site but that isn't working out like I had hoped. Enough with the "go see a tax pro" already...... geeesh )

 

[adjusterjack]

I was really hoping to get some answers from the folks on this site

You got an answer. It's just an answer you didn't like.

Try this tax forum site:

Ask TaxGuru - Free tax help and discussion forum

Maybe you'll find solace there.

 

[mpbarber]

You got an answer. It's just an answer you didn't like.

Try this tax forum site:

Ask TaxGuru - Free tax help and discussion forum

Maybe you'll find solace there.

First of all, thanks to everyone that took the time to try to help me.

Dear Adjusterjack, I actually did not get the answer to the questions I asked. I got advice, some personal judgements and a cliche which was unhelpful and unproductive.

Actually I just registered at TaxGuru.

p.s. I'm not looking for solace. Simply factual answers to my questions. As detective Friday used to say in the Dragnet TV series.... "Just the facts mam".