I would like geothermal for my vacation home for personal use, meaning not a rental. My primary home does not have geothermal.
Can I claim the geothermal tax credit for my vacation home? Instructions for Form 5695 Residential Clean Credit Energy Part I says "Qualified geothermal heat pump costs: The home doesn't have to be your main home".
Yet in Part II Question 17a on Form 5695 asks "Were the qualified energy efficiency improvements or residential energy property costs for your main home..." and "Caution: If you checked the “No” box, you cannot claim the energy efficient home improvement credit".
How would I answer question 17a or do I need to do something else to claim the credit? Or does this not qualify for the credit?
Thanks
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OK
1) The Geothermal is not a part of Part II. Part II is for energy efficient building property or as insulation, Doors, windows ,roofing.....but it goes on a different page.
2) If you are using the desktop software in forms mode, you shouldn't be messing with it there. If you had gone thru the interview questions, it would have properly entered it as an entry in Part I. (At least it did for me....delete the form and go thru the interview questions again. (If you are using the "Online software, you could also delete the form and start over with it)
3) IF you did make energy efficient changes to the second home...correct, those are apparently not included as credits. In fact, if you answer the leading in interview questions properly, it skips over the Door/window/roof/insulation stuff entirely and goes directly to the page for solar/geothermal/biomass.
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However, if you have not yet done it yet...than that would be on the 2023 tax return, next year....and I haven't checked to see whether the credit is still allowed for 2023..
The form 5695 is not supposed to be finalized in the software, until the end of the week. after 12 January (though it could be delayed further )
But...
It all goes in well and properly (at least so far on the desktop), as follows:
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