Nov
14

Get Tax Credits on Eco-Friendly Home Upgrades

November 14, 2011

Have you considered making some energy-efficient improvements to your Chicago real estate? Do you realize that doing so before the end of the year could generate tax savings?

It’s one of the recommendations offered by officials at Riverwoods-based CCH, a Wolters Kluwer business and the leading global provider of tax information, who are advising taxpayers to look at their financial situations now, as the clock winds down on the 2011 tax year.

“It’s wise to incorporate traditional year-end strategies as well as specific ones that react to situations unique to this year,” said Mark Luscombe, JD, LLM, CPA, and CCH Principal Federal Tax Analyst. “Some things to take note of include the impact of certain tax benefits scheduled to end with 2011; a look ahead at possible sea-changes in the tax laws starting in 2013; and attention to new opportunities and pitfalls created during the past year through court cases and IRS rulings.”

man working on a new roof

Replacing your roof before the end of the year could save you in taxes.

CCH listed some potential year-end tax strategies taxpayers should do now that could make a significant difference in what’s owed in the future.

Among the recommendations are Energy Efficiency Tax Incentives: Through December 31, 2011, some green residential upgrades and products qualify for tax credits, including new roofing, heating and cooling systems, water heaters, high-efficiency appliances, windows, doors, skylights and insulation products.

So, if you were planning on doing the improvements anyway, why not get them done now and save?

CCH also covered Gift and Estate Tax: “The current estate tax through 2012 is set at a maximum 35-percent rate and a $5 million exemption amount. Many experts predict after 2012 that Congress will lower the exclusion to $3.5 million and raise the top rate to 45 percent. In light of this possibility, lifetime gift-giving, ideally on an annual basis, should continue to form part of a master estate plan.”

CCH also provides advice on Income and Deduction Shifting, Alternative Minimum Tax, Roth Conversions, Gains and Losses and senior contributions.

For more information on how to get better positioned for filing income tax returns in 2012, visit CCHGroup.com.

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