Posted on December - 06 - 2011
Answer: Doug – IRS Form 5695 and Instructions has the answer to your question. The form is used to calculate the Residential Energy Credits including the Residential Energy Efficient Property Credit. Your geothermal system is covered under this particular credit.
The credit amount will be determined using part II of the form. When you look at the form you will see that you first calculate the amount of the credit. The credit amount you can claim on your tax return is the lesser of the credit or your tax reduced by certain other credits.
If you are unable to claim the full amount of the credit because of this limitation you can carry the unused portion of the credit forward until the credit has be used.
You can find Form 5695 and Instructions at the IRS web site, as well as other information on energy credits.
Posted on December - 03 - 2011
Who actually enjoys paying fees? Not me! But some fees can be even more unpleasant than others when it comes to credit cards. An annual fee, for example, can be justified if it’s getting you access to an elite frequent flyer programme. A late fee because a payment you sent arrived a bit later than expected? That’s a harder fee to accept.
Let’s look at three credit card fees you should be able to avoid, and how you can do it.
Late Fees
How to avoid them: I know what you’re probably thinking. “Avoiding late fees is easy. Just pay your bill on time!” But it isn’t always that simple. You might send a cheque for your payment well in advance of your due date and still be charged a late fee.
It depends on how quickly your payment arrives at its destination and how quickly it’s opened and processed by your credit card company. To avoid this fee, don’t just pay on time. Pay early
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Posted on November - 21 - 2011
As required by law, CBO prepares regular reports on its estimate of the number of jobs created by the American Recovery and Reinvestment Act of 2009 (ARRA), which was enacted in response to significant weakness in the economy at that time. In its latest report, issued this afternoon, CBO provides estimates of ARRA’s overall impact on employment and economic output in the third quarter of calendar year 2011, as well as over the entire period since February 2009.
Estimates of ARRA’s Impact in the Third Quarter of 2011
CBO develops estimates of ARRA’s effects on output and employment by looking at recorded spending to date along with estimates of the other effects of ARRA on spending and revenues, by using evidence about the effects of previous similar policies, and by drawing on various mathematical models that represent the workings of the economy. Using
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Posted on November - 12 - 2011
August 27, 8:54pm
Answer: Susan – This kind of sale usually creates a requirement to report the sale on your federal income tax return for the year of the sale. The sale would be reported on schedule D, form 1040.
You would pay capital gains tax on the sale if you sold the land for more than your cost basis at the time and any expenses related to the sale such as a sales commissions.
Since you owned the land for more than one year, any gain would be taxed at the long term capital gain tax rates. If you sold the land at a loss, the loss would be a long term capital loss.
There are many variables that can come into play depending on the exact circumstances of your ownership and sale.
Based on the information in your question, I am only able to give you a very general answer.
IRS Publication 544, Sales and Other Dispositions of Assets, Publication 550, Investment Income and Expenses and Publication 551, Basis of Assets all contain helpful information on this subject.
You may find looking at the Schedule D and instructions valuable at well.
