Dollar$
& $ense
Tax Corner
Indiana Private
School Deduction
by Devon Weaver, Keeping Tabs Accounting
Home Energy Credits
The Nonbusiness Energy Property
Credit is aimed at homeowners installing energy efficient improvements such
as insulation, new windows and furnaces. The credit is more limited than
in the past years, but can still provide
substantial tax savings.
• The 2011 credit rate is 10 percent
of the cost of qualified energy
efficiency improvements. Energy
efficiency improvements include
adding insulation, energy-efficient
exterior windows and doors and
certain roofs. The cost of installing
these items does not count.
• The credit can also be claimed for the
cost of residential energy property,
including labor costs for installation. Residential energy property
includes certain high-efficiency
heating and air conditioning
systems, water heaters and stoves
that burn biomass fuel.
• The credit has a lifetime limit of $500,
of which only $200 may be used for
windows. If the total of nonbusiness energy property credits taken
in prior years since 2005 is more
than $500, the credit may not be
claimed in 2011.
• Qualifying improvements must be
placed into service to the taxpayer’s principal residence located in
the United States before January
1, 2012.
Homeowners going green should
also check out the Residential Energy
Efficient Property Credit, designed to
spur investment in alternative energy
equipment.
• The credit equals 30 percent of what
a homeowner spends on qualifying property such as solar electric
systems, solar hot water heaters,
geothermal heat pumps, wind turbines, and fuel cell property.
• No cap exists on the amount of credit
available except for fuel cell property.
• Generally, labor costs are included
when figuring this credit.
Not all energy-efficient improvements qualify for these tax credits, so
homeowners should check the manufacturer’s tax credit certification statement before they purchase. Taxpayers
can normally rely on this certification
statement which can usually be found
on the manufacturer’s website or with
the product packaging.
Crossroads
Food Animal
Veterinary
Service
Serving
Northern
Indiana &
Southwest
Michigan
2007 Graduate Purdue
School of Veterinary Medicine
Herd Health Maintenance
Basic Medicine & Surgery
Emilie J. Blough DVM
57643 CR 31 • Goshen, IN
46528 • 574-606-7280
Reproductive Ultrasound
Cattle • Sheep • Goats • Pigs
One bill provides a deduction for individuals if they send a child to a private
school or provide home schooling and
have unreimbursed education expenses. For parents that meet the qualifications, a deduction against income of up
to $1,000 per dependent child for tax
years beginning after December 31,
2010 is available. Education expenses
include expenses in connection with
enrollment, attendance, or participation of the taxpayer’s dependent child
in a private school or homeschooling.
Homeschooling does not include the
delivery of instructional service in a
home setting to a dependent child who
is enrolled in a school corporation or
a charter school. There is a 180 day
qualification on this credit.
Phone 260.768.7043 • Fax 260.768.7085
24 Hour Service 260.463.1404
Ryan Miller • Glen Miller
Monday - Friday 8-5 • Saturday 8-1
7965W 050N • Suite 1 • Shipshewana, IN 46565
½ mile south of US 20 on the left hand side
in the old Double Eagle Building
New & Used Tires
Major Brand Tires
Off Brand Tires • Flat Repairs
Custom Wheels • Trailer Wheels
Brakes • Oil Changes
Suspension • Ball Joints
Tranny Flushes • Much More
We do tires for: Semis • Trucks
SUVs • Farm Equipment • Etc.
The Hometown Treasure · Feb. ‘12 · pg 39