Window Tax Credit Part 2

- D
- Dale Sempek
  
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posted
13 years ago

Thu, Jul 29, 2010 5:42 AM

I'm buying windows for someone I know.
> >These windows qualify for the $1500 tax credit. > >I have already received the credit for my own windows. > >Can the person I'm buying the windows for take advantage of this credit? > >Thanks for any advice you may offer! >Why not give the money for the windows to this person, who then can >buy the windows and take the credit. You can't.

I have already purchased these windows under my name@ Doh!!

If the window company would give me a statement with my friend's name on it......?? I know him pretty well.

Would this be unethical or illegal for me, the window company or my friend??

- R
- removeps-groups
  
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posted
13 years ago

Fri, Jul 30, 2010 7:54 PM

Not sure if it matters whose name is on the invoice. It's as if you bought it on his behalf, in lieu of giving him the money and having him buy it. I don't really know how strict the IRS is.

- P
- paulthomascpa
  
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posted
13 years ago

Fri, Jul 30, 2010 8:15 PM

I see a tracing issue here. Can the taxpayer who plans to take the tax credit for the windows prove that *those* windows were installed in his house and not the house of the guy who bought the windows.

Then there is the argument of the tax credit being based on the amount

*paid*, which for the claiming taxpayer is zero. Under gifting rules, the basis (or cost) would transfer to the recipient of the windows. So maybe there is hope, but maybe there isn't.

An FYI: These new "one time" tax credits are going to be the subject of audits in the future, and some have already been or are being audited based on tax credit claims. So be aware that any monkey business is usually caught.