I will be replacing my oil furnace and HVAC with geothermal. If my contractor has to demo my furnace and thus, the associated oil tank to add the geo system, can the oil tank removal costs be incorporated in entire system cost and thus be included in the federal tax credit? Thanks, Trent

I would say yes. That is a cost associated with installing geo. My tax preparer just asked for a bottom line number.

ChrisJ

Yes, it is part of installing the system. The tax code is using the term "install cost for the system". Disclaimer: I am not a tax professional. Check back with your accountant.

Depends how the company invoices it but I would say yes, then go check with a CPA to verify.

How far can we go with this?

 If I want to have a geo system and I don't have a house, can I deduct the cost of the house since I need the house to be able to install a geo system??

At the very least I need to have a few acres for my horizontal loop system.......

One clients customer claimed he was informed by his accountant that the labor didn't count. I informed him that (like Direct TV) installation is free with every order.

That's funny Dewayne!!

Where do we stop, I included all costs for radiant infloor for basement slab but didn't include the cement floor, my thought was I need a basement slab with or without geo. Someone said I should have included it because it was the radiant emitter, like duct work is to air heat. Would have been a few thousand more on my total.

ChrisJ

Posted By ChrisJ on 02 Mar 2012 09:53 AM
Would have been a few thousand more on my total.

If you want, you can ask your accountant about filing an amended return.  Not sure if the audit risk is any greater compared to filing a normal return.

I didn't land the job but the customer was building a pond with a golf green on an island in the pond(yes three hole golf course on the property) and he had the geothermal contractor dig the pond and run a 1 ton loop in it so the excavation of the pond and associated materials were part of it.

That was where it became a stretch for me as the pond was not needed for the heat transfer, but I didn't get the job so I guess I don't have to feel bad about putting in a pond for golfing as part of a tax credit