Tax

Certain energy-efficient home improvements can cut your energy bills and save you money at tax time. While many of these tax credits expired at the end of 2016, tax credits for residential and non-business energy-efficient solar technologies do not expire until December 31, 2021. Here are some key facts that you should know about these tax credits:

Residential Energy Efficient Property Credit

• This tax credit is 30 percent of the cost of alternative energy equipment installed on or in your home.
• Qualified equipment includes solar hot water heaters and solar electric equipment placed into service on or after January 1, 2006, and on or before December 31, 2021.
• There is no maximum credit for systems placed in service after 2008.
• The tax credit does not apply to solar water-heating property for swimming pools or hot tubs.
• If your credit is more than the tax you owe, you can carry forward the unused portion of this credit to next year’s tax return.
• At least half the energy used to heat the dwelling’s water must be from solar in order for the solar water-heating property expenditures to be eligible.
• Solar water-heating equipment must be certified for performance by the Solar Rating Certification Corporation (SRCC) or a comparable entity endorsed by the government of the state in which the property is installed.
• The home must be in the U.S. It does not have to be your main home.
• Use Form 5695, Residential Energy Credits, to claim the credit.

Equipment costs such as assembling or installing original systems, on-site labor costs, and costs related to wiring or piping solar technology systems are considered final when the installation is complete. For a new home, the placed in service date is the occupancy date.

The maximum allowable credit varies by the type of technology:

Solar-electric property

• 30% for systems placed in service by 12/31/2019
• 26% for systems placed in service after 12/31/2019 and before 01/01/2021
• 22% for systems placed in service after 12/31/2020 and before 01/01/2022

Solar water-heating property

• 30% for systems placed in service by 12/31/2019
• 26% for systems placed in service after 12/31/2019 and before 01/01/2021
• 22% for systems placed in service after 12/31/2020 and before 01/01/2022

If you would like more information about this topic please contact the office today.

• By Leon Clinton
• November 19, 2017

As IRS e-Services begins its move later this month to Secure Access authentication and its two-factor protections, cybercriminals are likely to make last-ditch efforts to steal passwords and data prior to the transition.

IRS e-Services users should be aware of a new phishing scam that tries to trick tax professionals into “signing” a new e-Services user agreement.

The phishing scam seeks to steal passwords and data.These and other sophisticated schemes are adaptive in nature, and everyone should be cautious before clicking on a link or entering sensitive personal information.

How the e-Services Scam Works

The scam email claims to be from “e-Services Registration” and uses “Important Update about Your e-Services Account” in the subject line. It states, in part, “We are rolling out a new user agreement, and all registered users must accept its revised terms to have access to e-Services and its products.” It asks the individual to review and accept the agreement but takes them to a fake site instead.

What to do if you Clicked on a Link

For those who may have clicked on this link, perform a deep scan with security software, and then contact IT/cybersecurity personnel and the IRS e-Help Desk on IRS.gov.

Questions or Concerns?

Don’t hesitate to call the office if you have any questions about IRS e-Services or believe you may have been a victim of an IRS-related scam. To learn more about what the IRS is doing to protect accounts with Secure Access authentication, please visit the e-Services landing page on the IRS website.

• By Leon Clinton
• November 16, 2017

As the end of year approaches and tax season right around the corner, taxpayers who are victims of a natural disaster might need to reconstruct records to prove their loss. Doing this may be essential for tax purposes, getting federal assistance, or insurance reimbursement. With that in mind, here are some tips will help individual taxpayers, as well as business owners, reconstruct their records after a disaster:

Individual Taxpayers

1. Taxpayers can get free tax return transcripts by using the Get Transcript tool on IRS.gov or use their smartphone with the IRS2Go mobile phone app. They can also call 800-908-9946 to order them by phone.

2. To establish the extent of the damage, taxpayers should take photographs or videos as soon after the disaster as possible.

3. Taxpayers can contact the title company, escrow company, or bank that handled the purchase of their home to get copies of appropriate documents.

4. Homeowners should review their insurance policy as the policy usually lists the value of a building to establish a base figure for replacement.

5. Taxpayers who made improvements to their home should contact the contractors who did the work to see if records are available. If possible, the homeowner should get statements from the contractors to verify the work and cost. They can also get written accounts from friends and relatives who saw the house before and after any improvements.

6. For inherited property, taxpayers can check court records for probate values. If a trust or estate existed, the taxpayer could contact the attorney who handled the trust.

7. When no other records are available, taxpayers can check the county assessor’s office for old records that might address the value of the property.

8. There are several resources including Kelley’s Blue Book, National Automobile Dealers Association, and Edmunds that can help someone determine the current fair-market value of most cars on the road. These resources are all available online and at most libraries:

9. Taxpayers can look on their mobile phone for pictures that show the damaged property before the disaster.

10. Taxpayers can support the valuation of property with photographs, videos, canceled checks, receipts, or other evidence.

11. If they bought items using a credit card or debit card, they should contact their credit card company or bank for past statements.

12. If a taxpayer doesn’t have photographs or videos of their property, a simple method to help them remember what items they lost is to sketch pictures of each room that was impacted.

Small Business Owners

After a disaster, many business owners might need to reconstruct records to prove a loss as well. Here are four tips that may be helpful for business owners that need to reconstruct their records:

1. To create a list of lost inventories, business owners can get copies of invoices from suppliers. Whenever possible, the invoices should date back at least one calendar year.

2. For information about income, business owners can get copies of last year’s federal, state and local tax returns. These include sales tax reports, payroll tax returns, and business licenses from the city or county. These will reflect gross sales for a given period.

3. Owners should check their mobile phone or other cameras for pictures and videos of their building, equipment, and inventory.

4. Business owners who don’t have photographs or videos can simply sketch an outline of the inside and outside of their location. For example, for the inside the building, they can draw out where equipment and inventory were located. For the outside of the building, they can map out the locations of items such as shrubs, parking, signs, and awnings.

Help is Just a Phone Call Away

If you have been a victim of a natural disaster this year, and need assistance reconstructing tax records, don’t hesitate to call.

• By Leon Clinton
• November 13, 2017