Can I deduct Energy Efficiency Deductions if...

[Justmefromstrout]

My wife and I renovated a barn into a home on my parents property 27 years ago. Since that time My parents renovated the other half of the building and moved in. So the barn house is essentially a duplex with separate addresses and mailboxes.

When my father passed away in 2018, the deed was changed to put my mom as primary titleholder and me and my brother as receiving the property in the event of her death. (Considerations for capital gains and so forth...)

Now we are making some significant updates to the HVAC systems and they qualify for tax credits.

All parties are fine with my claiming the tax credits because I am paying for the improvements and do live here. (Brother does not live here.) 

Can I claim these deductions? 

Do I need to have my mom and / or my brother  sign or file any documents to make sure that I can claim these deductions without complications?

[PattiF]

No, you are not able to claim the Energy Efficient credits because you are not the owner of the property.  

From Expert DaveF1006:

"All IRS documents assume that the Homeowner is claiming residential energy credits although it may be specifically addressed in its documents. Some credits can be claimed if the residence is their principal residence and some can't if they don't live in the residence. For an example, read this IRS link that references improvements that can be claimed by homeowners. Also, refer to this link and read the bottom of it, it refers to homeowners.

One thing is apparent, IRS does not make it easy to determine who is really eligible to take the credit. The wording in these documents is very confusing but as a tax expert, I am 100% sure that only the homeowner can take the credit."

[Justmefromstrout]

So my mom would have to take the credit and give it to me after it comes back... 

[Cynthiad66]

Yes. Your mon would have to take the credit.  You and your mom would have to work out whether she gives the credit to you when it is received.  However, that is a good option.  These credits can only be deducted on the tax return by the homeowner.  Mainly, because you must reduce the basis of your home by the amount of any credit allowed.

@Justmefromstrout