Comparing apples to apples: alternative accounting calendar lets retailers track sales better

Hardware Retailing, Jan, 2007 by Heather Kauffman-Peters

Residential Energy Credits

A $500 lifetime credit is now available for energy improvements made to a taxpayer's principal residence. The credit has two components. First, there is a 10 percent credit for expenditures related to the building envelope (things such as doors and windows that reduce heat loss or gain). However, the maximum credit for windows is $200. The second credit is a "dollar for dollar" tax credit for residential energy property expenditures such as:

* Heat pumps, efficient central air conditioners or water heaters up to $300;

* Qualified natural gas, propane or furnace or hot water boiler up to $150;

* Advanced mum air circulating fan up to $50.

Besides the personal tax benefit, retailers may also have a marketing opportunity. Work with suppliers and customers to highlight the energy and tax savings available for products you stock.

Phasing Out a Phase Out

Higher-income taxpayers are not allowed a full deduction for all of their itemized deductions. For several years, itemized deductions have been subject to a phase out based on adjusted gross income. For each of the next three years. the phase out is going to be reduced by one-third.

IRS regulations (Circular 230) require us to advise you that, unless otherwise specifically noted, any federal tax advice in this article is not intended or written to be used, and it cannot be used by any taxpayer for the purpose of avoiding penalties imposed by the IRS: Furthermore, this article is not intended or written to support the promotion or marketing of any of the transactions or matters it addresses.