Sure, I’m much more aware of my personal finances now, and made some very positive changes in 2007, but looking back, I realize I’ve also made some very-avoidable mistakes, for which I’m kicking myself.
My first mistake is also the most annoying to me, since I’ll be feeling the impact of this particular poor decision as I trudge through my tax filing in the next two months.
1. Failing to Utilize the Energy Tax Credit
A tax law change in 2005 meant to encourage energy-conscious home investments by consumers offered a ten percent tax credit for 2006 and 2007 purchases of energy-efficient exterior doors, windows, insulation systems, metal roofs, furnaces and water heaters.
The credit, up to $500 in total, could be split across the two years.
In 2006, I was thrilled to take a $140 tax credit for new windows I’d purchased for my home, but planned to use the remaining $360 credit for door and window purchases in 2007.
I knew I needed to buy several exterior doors, knew they’d be expensive, had all year to make the purchases, and yet I failed to do so. My rationale? I figured that if I kept haunting the returned special order bins at Home Depot and Lowe’s, I’d eventually find dirt-cheap doors, and the savings would justify the wait.
Now it’s the first day of 2008, I still have no doors for my home’s impending remodel, and I lost out on a $360 tax credit I badly needed to offset my 2007 income.
The only way to make up for this now is if I really do find an insane deal on the doors I need, and with a month left until I need them for the remodel, that’s not looking likely.
I have 4 more mistakes to share; stay tuned.
Treasury and IRS Provide Guidance for Energy Credits for Homeowners [IRS]
Rebates and Tax Credits for Windows, Doors, and Skylights [EnergyStar.gov]
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I bought two new doors this year! Can’t wait to take the deduction. Thanks for the tip.
RocketC,
Glad someone got in on it!
unlike in my home country there’s no tax deduction… the beureaucrats so corrupted… I envy you guys…