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Deductions & credits
No, when you took out the loan, the amount was considered to be paid in full. You can claim the credit on the total cost of the improvement for the year that the improvement was installed and the year you got the loan to pay the cost.
If it was installed in 2022 and qualifies for the credit, claim the credit on your 2022 tax return based on the total cost of the improvement, not just based on the amount that you have paid back so far.
Then, in later years while you are still paying back that cost over time, you will not enter anything on your tax return because you already claimed the credit based on the total cost.
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March 4, 2023
8:42 AM