I have a second (vacation) home in Florida, and for that home earlier this year I ordered replacement energy-efficient windows, through Home Depot. The payment terms are 24 months same as cash using my Home Depot credit card, with a stipulation that each month I pay the minimum amount due, meaning around $100 per month.
The windows are ready for installation but are sitting in the warehouse of the install subcontractor waiting for my return to Florida in a few weeks. Initially we’d planned on an install date in early November, but it seems the Inflation Reduction Act would indicate I’d be better off pushing back the installation to January.
My understanding is that as of January 2023 the legislation allows for tax breaks for second (vacation) homes. So to take advantage of the tax break I need to delay installation until sometime after January 1, 2023.
By that time I’ll have made 2022 payments totaling around $1,000, but I’ll still have a balloon payment waiting, which I plan to make sometime in 2023. The amount of the balloon payment will vary depending on how long I wait to pay off the balance, but it will be a minimum of $9,000.
It’s my understanding that if I push installation back to January 2023, and pay off the balance of my debt (>$9,000) in 2023, I should be eligible for a $600 tax credit when I file my 2023 return. Correct?
