GIVE YOURSELF AND YOUR HOME A CHRISTMAS PRESENT!

The countdown to Christmas is on (and I won’t add to your stress by mentioning how many shopping days are left before December 25^th!).

While you are busily making holiday preparations, I will remind you there is another countdown underway.  Homeowners have until the end of 2010 to complete certain energy-related improvements to their homes to be able to cash in on the tax credits available for doing this type of work.  Be sure to check with your CPA for particulars about what is included in this program, and what is not.

Here are a few details you should understand if you want to give yourself and your house a holiday bonus:

A tax credit is available in the amount of 30% of the cost of qualifying improvements up to a maximum credit of $1,500.00.  If you replace windows for example, and the cost is $5,000.00, you will have reached the maximum credit of $1,500.00 ($5,000.00 x 30% = $1,500.00).  You can spend more on your improvement projects, of course, but the tax credit is maxed out at $1,500.00.  If you have already done work on your home this year, pull your receipts and see if you qualify!  Examples include heating, ventilating, and air conditioning, insulation, roofs (metal and asphalt), water heaters (non-solar), windows and doors, etc.  You can use multiple jobs to reach the maximum, but the maximum credit is $1,500.00 no matter how many projects you complete.  This program applies to your primary residence only.

If you are planning to do this type of work anyway, you would be wise to finish the work this year and let the government “pay” for part of the job.  Good luck, and if you need the name of an excellent contractor for any of the work listed above or beyond, let me know.  I work with the best!