Today TaxMama hears from Tony in Virginia who tells us. “We have purchased a high efficient heat pump that qualifies for the 30% tax credit. We plan to remove the old system and install the new system. Can we charge our labor to the tax credit amount? I have a side engineering business along with schooling from the USAF for HVAC (heating, venting, air conditioning). I also am EPA certified. HVAC is not my primary line of work, I engineer all sorts of control systems (industrial & naval).”
Congratulations on having all those skills!
They are undoubtedly useful in a great many ways. Even towards helping you cut substantial costs of installation for this and other things.
However, your own labor is never a tax cost – not for credits, not charitable contributions, not for self-employed businesses, …you’re getting the picture.
Valuable to you – worthless to IRS.
For the credit, you may use your expenditures for appropriate credit-worthy items.
And remember, you can find answers to all kinds of questions about the value of your labor, 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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