Today TaxMama hears from Bruce in the TaxQuips Forum, with exciting news, “I purchased a new home in October and added some builder upgrades, including energy efficient appliances, radiant barrier roof, etc. Are these tax relief items available to me as an individual taxpayer? Even though I don’t have receipts on each item, I did pay the builder upgrade costs; and these were added to my purchase price of the home.”
Here is a cardinal rule when it comes to tax breaks:
IF YOU DON’T HAVE RECEIPTS, YOU DON’T GET THE TAX BENEFIT.
So, if you want any tax breaks, ask the builder to provide receipts. Before you do, please read all about the kinds of receipts you will need in order to qualify for the credits.
However, when it’s a new home, generally, the builder will get the tax breaks if they are available to him/her.
Tax breaks potentially available to you? Perhaps up to $1500 for the roof, windows, etc.
In addition, the appliances might get you refunds from your city or state. You can find more information in a recent Equifax Tax Blog.
Incidentally, Bruce, I’ve owned two brand new homes. So let me give you one tip – keep a sharp eye out for anything at all that is wrong. Notify the builder, in writing, each time you find something that needs to be corrected. Generally, the builder will take care of them properly. But just in case they only make promises, not repairs, you will have a record of the date of each notification.
You know the universal rule of record-keeping: If you keep excellent records, you will never need them. If you don’t keep meticulous records, uh oh – you WILL need them.
And remember, you can find answers to all kinds of questions about energy credits and other tax issues, free. Where? Where else? At www.TaxMama.com.[Note: If you were subscribed to the e-mailed TaxQuips, you’d be getting other exciting news and tips by e-mail, that never appear on the site. Please click on the join TaxMama.com link – it’s free!]
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