Tax deduction on new air conditioner?? ?

Question

Hi guys! I was wondering about something. My brother said that when I install my new upstair AC unit (cost approx. $2500.00) that I need to claim it on my taxes. Will I get a deduction for this?? If so, about how much will I get? THANKS!

Answer 1

Sounds like he's pulling your leg.

Answer 2

You need to ask him what he means? Is he speaking of a deduction for installing an energy efficient appliance?

Answer 3

The last couple years, there has been a credit available for some types of energy-saving home improvements.  It expired at the end of 2007, so you're too late unless Congress passes an extension - don't count on that happening.

See http://www.irs.gov/newsroom/article/0,,i... for info about the credit.

Answer 4

No, there is no income tax deduction unless the air conditioner went into a rental unit, and then there is a deduction against your income from rent.  

However, you may be able to use the cost of the air conditioner against your tax basis when you go to sell the house, so save your receipts.

Answer 5

The only thing I could find on irs.gov about energy credit for AC was "A central air conditioner that achieves the highest efficiency tier that has been established by the Consortium of Energy Efficiency and is in effect on January 1, 2006;"

However, those energy credits for home owners expired at the end of 2007.

Answer 6

Some states may give tax credits for buying certain energy-efficient appliances to replace older ones. You should ask your brother for details. He may know what he's talking about.

There's no kind of federal deduction for the purchase of any air conditioner.