CARRY FORWARD: If we purchased $9,000 heat pump system in 2017 & the max amt of cost for credit was $2,000, can we carry forward the remainder of the cost this year,2018?

[Anita01 · Accepted solution]

No, that's not how a carryforward works.  The credit is calculated in the year you installed and paid for the improvement.  If the entire amount of the CREDIT cannot be used, that can carry forward, but you don't carry forward unused costs to be used in calculating a new credit in future years.

[MomandMe]

Thank you for your quick response and clear explanation.  It was a nice thought though right? LOL

[Anita01]

Very nice thought.  I'm sure that's one of the reasons Congress did not write that law that way, too good to be true.