Tag Archives: Q&A

hvac

Q&A on Energy-Efficient Tax Credits

Just two months from now, it’s time to pay the taxman once again – but for some homeowners, there may be a new way to cut the bill. The government legislation that avoided the so-called fiscal cliff included a provision that retroactively reinstated 25C Tax Credits for residential energy efficiency home improvements (up to $500 on the installed cost.) The credit applied to purchases made in 2012, as well as for future purchases in 2013. The credit previously expired December 31, 2011.

Service Experts, North America’s largest HVAC service company, has provided a recap of frequently asked questions and answers on the 25C Residential Energy Tax Credit (HVAC Tax Credits).

Q.  What purchases do the tax credits apply to?

The tax credit applies for qualifying new; water heaters, furnaces, boilers, heat pumps, central air conditioners, building insulation, windows, roofs, circulating fans used in a qualifying furnace, and stoves that use qualified biomass fuel

Q.  What are the applicable purchase dates to redeem the credit?

The credits were made retroactive to January 1, 2012 and apply to qualifying equipment installed any time after December 31, 2011 through December 31, 2013.

Q.  What are the household qualifications?

The home must be the taxpayer’s primary residence to qualify.

Q.  How much is the tax credit for?

For purchases made in 2011, 2012, and 2013, the total amount for all three years is limited to $500. Taxpayers are ineligible for this tax credit if the credit was claimed in an amount of $500 in any previous year.

Q.  How do I claim the tax credit?

File IRS Form 5695 with your 2012 and 2013 federal tax return. (Service Experts has the form available for download at:

http://www.serviceexperts.com/SamsBlog/February_2013/HVAC_Tax_Credit_FAQs_for_2013.aspx

Most major tax software providers should include the form in their tax return process, but check to make sure. Also make sure your CPA knows about all your home improvement purchases to receive all the applicable tax benefits.

Q.  When does the tax credit expire?

The energy efficiency home improvement tax credit will expire on December 31, 2013 unless reinstated again by the government.

Q. What heating and air equipment qualifies for a tax credit?

Only specific models meet the specified minimum efficiency requirements to qualify for the tax credit. Service Experts Heating & Air Conditioning provides a detailed breakdown at:

http://www.serviceexperts.com/SamsBlog/February_2013/HVAC_Tax_Credit_FAQs_for_2013.aspx

 

hvac

Q&A on Energy-Efficient Tax Credits

Just two months from now, it’s time to pay the taxman once again – but for some homeowners, there may be a new way to cut the bill. The government legislation that avoided the so-called fiscal cliff included a provision that retroactively reinstated 25C Tax Credits for residential energy efficiency home improvements (up to $500 on the installed cost.) The credit applied to purchases made in 2012, as well as for future purchases in 2013. The credit previously expired December 31, 2011.

Service Experts, North America’s largest HVAC service company, has provided a recap of frequently asked questions and answers on the 25C Residential Energy Tax Credit (HVAC Tax Credits).

Q.  What purchases do the tax credits apply to?

The tax credit applies for qualifying new; water heaters, furnaces, boilers, heat pumps, central air conditioners, building insulation, windows, roofs, circulating fans used in a qualifying furnace, and stoves that use qualified biomass fuel

Q.  What are the applicable purchase dates to redeem the credit?

The credits were made retroactive to January 1, 2012 and apply to qualifying equipment installed any time after December 31, 2011 through December 31, 2013.

Q.  What are the household qualifications?

The home must be the taxpayer’s primary residence to qualify.

Q.  How much is the tax credit for?

For purchases made in 2011, 2012, and 2013, the total amount for all three years is limited to $500. Taxpayers are ineligible for this tax credit if the credit was claimed in an amount of $500 in any previous year.

Q.  How do I claim the tax credit?

File IRS Form 5695 with your 2012 and 2013 federal tax return. (Service Experts has the form available for download at:

http://www.serviceexperts.com/SamsBlog/February_2013/HVAC_Tax_Credit_FAQs_for_2013.aspx

Most major tax software providers should include the form in their tax return process, but check to make sure. Also make sure your CPA knows about all your home improvement purchases to receive all the applicable tax benefits.

Q.  When does the tax credit expire?

The energy efficiency home improvement tax credit will expire on December 31, 2013 unless reinstated again by the government.

Q. What heating and air equipment qualifies for a tax credit?

Only specific models meet the specified minimum efficiency requirements to qualify for the tax credit. Service Experts Heating & Air Conditioning provides a detailed breakdown at:

http://www.serviceexperts.com/SamsBlog/February_2013/HVAC_Tax_Credit_FAQs_for_2013.aspx

 

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Wealth Management Q&A With GenSpring Executives

Here are answers to some common wealth management questions from Pat Soldano, chairman – Western Region, GenSpring Family Offices, and Mark Mushkat, senior advisor – Western Region, GenSpring Family Offices:

What is the biggest mistake people make — that could be corrected by an effective financial adviser — when they try to manage their assets on their own? They misjudge the time, expertise and resources necessary to truly manage their assets effectively, and achieve an appropriate level of return for an appropriate level of risk.

What has been the biggest change in wealth management strategies in the wake of the recession? Investors have become more risk-averse and become less trusting of the wealth management industry in general. They are questioning their advisors more and trying to understand if their advisors are doing what is in the best interest of the investor or the advisor and/or their firm!

Is there one particular trend you’re seeing in clients or is there one particular strategy you’re steering clients toward that may be different from strategies employed five years ago? GenSpring has concerns about the risks of the stock market relative to its expected returns. As this market will likely remain highly volatile, we expect comparable returns in other asset classes without as much risk as stocks.

Are there things that people can or should do between now and the end of the year to protect or build their wealth? Take advantage of the $5 million per person gift tax exemption, by using as much of it as practicable, based on their spending needs, before it may go away at the end of 2012. This will take assets out of their estate that would other be subject to a 35 to 55 percent estate tax at their death.

What advice would you give someone who is just reaching an age where they are starting to worry about protecting and building their wealth? Careful financial planning is key to effective saving, investing and spending. It’s important to consider taxes, inflation, market risks and expected returns in asset classes like stocks, bonds, CDs, real estate, etc.

What advice would you give someone who is established, but wants to protect and build their wealth for the next generations? Our families find it helpful to have clear objectives spelled out in an Investment Policy Statement. This document is a road map for good times and for bad, and it’s useful to share with guardians of future generations to maintain a consistent and disciplined investment plan.