Form 5695 Residential Energy Credit

[mevorba]

I purchased a tankless natural gas water heater for $5,500 including installation,How do I figure the tax credit per the specific requirements in the form,i.e. specific equipment, pumps,the heater itself and electrical improvements and replacement of panel boards,branch circuits,feeders (the invoice does not  itemize line items just the total amount)

Thanks for the help,

Barry M

[RobertB4444]

That is a list of potential places to enter the cost.  In your case you would just enter 5500 in the space for natural gas water heater.  That will allow you to finish your entry and make sure that you qualify for the deduction.

@mevorba 

[mevorba]

Thank you for your response, Robert. I have a follow up question that will qualify me for $600 credit, however per 29b the nat gas pump will qualify me for higher credit, can i split the total amount into these two-line items? to optimize the credit.

Thanks Robert, i appreciate your response,

Barry

[RobertB4444]

As long as you actually have a natural gas pump then of course.  Save any calculations that you do in order to reach the amounts in each block in case there are ever any questions.

@mevorba 

[mevorba]

Thanks Robert,

My last question is, can I also use item 25a " cost of improvements or replacement of panelboards, branch circuits or feeders" for electrical type of work done.  

I will definitely document my work to substantiate the allocated costs to the specific line items.

I appreciate your feedback,

Barry M.

[RobertB4444]

You can use any costs that you can substantiate for the credits.  If you are going to divide them up this way it might be worth it to reach out to the contractor for an itemized invoice.

@mevorba