topic For 5695 in Deductions & credits

For 5695

crkemper360 — Sun, 28 Feb 2021 21:15:41 GMT

In 2018 and 2019 I replaced the windows and furnace, respectively, in my house (house #1, main/primary residence) and took the applicable energy credits on my 2018 and 2019 taxes (aggregated to $500). In 2020, I sold that house and bought a different house (house #2) as my main/primary residence in which I replaced the water heater. If the energy credit for the water heater is $300, can I take that credit in 2020 because it was associated with house #2? Does the lifetime $500 ($200 for windows) limit apply to a given property or me as the tax payer?

Re: For 5695

DaveF1006 — Sun, 28 Feb 2021 22:53:20 GMT

According to this link from iRS.gov., "you may take these credits if you made energy saving improvements to your principal residence during the taxable year. In 2018, 2019 and 2020, the residential energy property credit is limited to an overall lifetime credit limit of $500 ($200 lifetime limit for windows)."

Based on that ruling, you should be able to take the remaining $200 for house #2.

Re: For 5695

crkemper360 — Wed, 03 Mar 2021 12:06:12 GMT

Thanks for the quick reply. So, for clarity, the credit is per tax payer's lifetime, not the property, right?

Re: For 5695

Opus 17 — Wed, 03 Mar 2021 12:49:25 GMT

The $500 lifetime maximum is per taxpayer. It sounds like you are done.