Cruisers Forum
 


Join CruisersForum Today

Reply
 
Thread Tools Rate Thread Display Modes
Old 10-03-2010, 03:26   #1
Registered User
 
bloodhunter's Avatar

Join Date: Dec 2009
Location: Baltimore MD
Boat: Morgan 45 Enchantress
Posts: 171
Images: 11
Talking Tax Credit

Was not sure whether to post this here or on Dollars & Cents but our accountant tells us that we can get a tax credit for the wind generator and solar panel we're installing on Enchantress. Seems that as long as the boat qualifies as a primary residence or summer home you can get the credit. Nice to get a break for a change
__________________

__________________


SV Enchantress
located Herrington Harbour South, Friendship MD
Sufficient unto the day is the evil thereof
bloodhunter is offline   Reply With Quote
Old 10-03-2010, 06:30   #2
Eternal Member
 
imagine2frolic's Avatar

Join Date: Feb 2008
Location: Las Brisas Panama AGAIN!
Boat: Simpson, Catamaran, 46ft. IMAGINE
Posts: 4,508
Images: 123
Listening to the news several weeks ago. I was thinking the same thing? I am sure if it works they will make changes in the coming years!..........i2f
__________________

__________________
SAILING is not always a slick magazine cover!
BORROWED..No single one of is as smart as all of us!
http://sailingwithcancer.blogspot.com/
imagine2frolic is offline   Reply With Quote
Old 17-03-2010, 13:24   #3
Registered User
 
boat_alexandra's Avatar

Join Date: Aug 2009
Location: Masachusetts
Boat: bristol 27
Posts: 2,802
I have installed a wind generator and solar panels, but I guess they don't give tax credits if you don't pay taxes?
__________________
boat_alexandra is offline   Reply With Quote
Old 17-03-2010, 14:09   #4
Registered User
 
S/V Illusion's Avatar

Join Date: Oct 2007
Location: Lakewood Ranch, FLORIDA
Boat: Alden 50, Sarasota, Florida
Posts: 1,692
Quote:
Originally Posted by geckosenator View Post
I have installed a wind generator and solar panels, but I guess they don't give tax credits if you don't pay taxes?
Sure you can. Just think of it another way - you can get a 10% credit back on the total amount of tax you paid --
10% of 0 = 0

I think someone may be confusing a tax credit incentive program for replacing energy inefficient appliances with energy star-rated appliances
__________________
S/V Illusion is offline   Reply With Quote
Old 17-03-2010, 16:04   #5
Senior Cruiser
 
FSMike's Avatar

Cruisers Forum Supporter

Join Date: Aug 2009
Location: Bahamas/Florida
Boat: Solaris Sunstar 36' catamaran
Posts: 2,654
Images: 5
Nope - The solar panel/wind generator tax program does exist. Too late for those of us who already had them. Darn.
__________________
Sail Fast Live Slow
FSMike is offline   Reply With Quote
Old 17-03-2010, 16:30   #6
Senior Cruiser
 
Captain Bill's Avatar

Cruisers Forum Supporter

Join Date: Apr 2008
Location: On the boat
Boat: Endeavourcat Sailcat 44
Posts: 2,313
Quote:
Originally Posted by S/V Illusion View Post
Sure you can. Just think of it another way - you can get a 10% credit back on the total amount of tax you paid --
10% of 0 = 0

I think someone may be confusing a tax credit incentive program for replacing energy inefficient appliances with energy star-rated appliances
Clearly you don't understand the concept of a Tax credit. If you pay zero taxes, the government will give you the value of the tax credit in the form of a refund. So if you got a $1000 tax credit and you owed zero taxes, the goverment would send you a check for $1000.
__________________
Captain Bill is offline   Reply With Quote
Old 17-03-2010, 16:36   #7
Registered User
 
S/V Illusion's Avatar

Join Date: Oct 2007
Location: Lakewood Ranch, FLORIDA
Boat: Alden 50, Sarasota, Florida
Posts: 1,692
Bill
a "credit" is a credit. One can't get credit for doing nothing or in this case, paying nothing.
__________________
S/V Illusion is offline   Reply With Quote
Old 17-03-2010, 17:25   #8
֍֎֍֎֍֎֍֎֍֎

Cruisers Forum Supporter

Join Date: Apr 2006
Posts: 13,022
In the US, there are federal tax credits and like all [sic] federal tax matters they are determined by the IRS. The IRS defines what a residence is, and the IRS doesn't care if it has wheels or sails or wings or a basement, as long as it meets the other criteria for a residence. (Bunk, galley, head.)

Sometimes the tax man is outright reasonable!
__________________
hellosailor is offline   Reply With Quote
Old 26-03-2010, 23:16   #9
Senior Cruiser
 
rebel heart's Avatar

Cruisers Forum Supporter

Join Date: Oct 2005
Posts: 6,190
Images: 3
I put my purchases on there; it's something like 30% of the total cost, up to a couple thousand. Nice of them to put a tax break in a place that helps the environment and independence.
__________________
rebel heart is offline   Reply With Quote
Old 27-03-2010, 10:20   #10
Registered User
 
svHyLyte's Avatar

Join Date: Mar 2006
Location: Tampa Bay area, USA
Boat: Beneteau First 42
Posts: 3,420
Images: 25
Quote:
a "credit" is a credit. One can't get credit for doing nothing or in this case, paying nothing.
I would agree with that under normal circumstances but at the present, the current administration has designated many "tax credits" for favored programs/ groups as "refundable" meaning that, if one doesn't pay taxes, the government will borrow the money and send one a check. Just because one doesn't pay taxes, one shouldn't be deprived of the benefit of tax credits. That would only favor the wealthy.

FWIW...
__________________
"It is not so much for its beauty that the Sea makes a claim upon men's hearts, as for that subtle something, that quality of air, that emanation from the waves, that so wonderfully renews a weary spirit."
svHyLyte is online now   Reply With Quote
Old 27-03-2010, 10:27   #11
Registered User
 
sabray's Avatar

Join Date: Aug 2008
Location: Wash DC
Boat: PETERSON 44
Posts: 3,169
I took the credit on my return and included the wiring panels controller and improved battery bank it's all a part of the system. Next year I think I will add 2 more panels. I did have taxes deducted last year I paid. Intersting that if you don't have income you can still get a return not sure I can believe that but it's abit off my skill level.
__________________
sabray is offline   Reply With Quote
Old 27-03-2010, 11:58   #12
Registered User

Join Date: Jul 2008
Location: Currently Milford, CT
Boat: S/V Running Fish - Passport 40
Posts: 78
Tax credit vs tax deductible

It used to be - not sure if it's still in place - that alternative energy purchases (like wind or solar) were tax deductible, meaning that the price paid was deducted from your taxable income before taxes owed were calculated. This is different than a "tax credit" as described above.
__________________
RunningFish is offline   Reply With Quote
Old 27-03-2010, 16:29   #13
Elvish meaning 'Far-Wanderer'
 
Palarran's Avatar

Cruisers Forum Supporter

Join Date: Jan 2008
Location: Me - Michigan / Boat - Tenerife
Boat: 56' Fountaine Pajot Marquises
Posts: 2,641
I pretty darn sure Capt. Bill is right, a credit is a credit and the government will send you a check if you don't owe any taxes, regardless of whether you had income or not. You do of course have to file a return. And, if you file a return and show that you had no income, then claim $10,000 for installing solar and want your 30% back, be prepared for an audit.

There are two types of audits. The first is where the IRS comes in and teaches you the proper method of accounting, then hands you a bill for the privilege of the lesson. The second is where the IRS comes in and you leave in handcuffs. Tax evasion verses legal tax avoidance.
__________________
Not all who wander are lost

http://www.sailblogs.com/member/palarran/
Palarran is offline   Reply With Quote
Old 27-03-2010, 18:17   #14
֍֎֍֎֍֎֍֎֍֎

Cruisers Forum Supporter

Join Date: Apr 2006
Posts: 13,022
"And, if you file a return and show that you had no income, then claim $10,000 for installing solar and want your 30% back, be prepared for an audit."
That may trigger an investigation, but not necessarily a full audit. For instance, if they say "Come to our offices and bring your papers" you may be able to satisfy them by showing there was no income and the $10,000 came out of savings while you were unemployed for a year. That's all you have to do--if the 30% is a rebate and not a tax refund or credit. Tax credits can also sometime sbe carried forward, so whether this is a problem or not depends on exactly what the details are, and how they apply in a situation.
The IRS.GOV web site has great documentation on most problems, and for most of the year the IRS actually does a damn fine job answering the phone and detailed questions for taxpayers. And has offices in most "federal buildings" and county centers, etc.
Right now...they still answer the phone but I'd expect an hour's wait and some impatient staff.
__________________

__________________
hellosailor is offline   Reply With Quote
Reply

Thread Tools
Display Modes Rate This Thread
Rate This Thread:

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Sales Tax and Use Tax - What the...? jpemb7 Dollars & Cents 7 18-01-2010 22:04
I Wonder - If You Install a Wind Gennie or Solar Panels, Can You Get a Tax Credit? chuck711 General Sailing Forum 4 09-01-2010 08:09
$8,000 Tax Credit snort Liveaboard's Forum 6 01-07-2009 10:16
Which Credit Cards to Carry waterworldly Liveaboard's Forum 15 04-02-2008 22:47



Copyright 2002- Social Knowledge, LLC All Rights Reserved.

All times are GMT -7. The time now is 06:42.


Google+
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.
Social Knowledge Networks
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.

ShowCase vBulletin Plugins by Drive Thru Online, Inc.