Residential Energy Credits - Form 5695

[tallguy]

I received a question which I would like to pass along to make sure my reading of the situation is correct. Thanks for any help.

There are two parts to Form 5695. Part I is the Nonbusiness Energy Property Credit. Part II is the Residential Energy Efficient Property Credit. Am I correct that neither credit is refundable, and that while one can carry forward an unused credit from Part II, that there is no such carryforward from Part I? That if the taxpayer in question cannot use all of their Part I credit due to the limitation based on tax liability (Line 13 of Part I (from the Credit Limit Worksheet)) that the unused credit is lost for good? Again thanks.

[mwcpa]

please see the instructions to the form 5695. specifically on page 6 of this link www.irs.gov/pub/irs-pdf/f5695.pdf, worksheet 13 for line 13. (empahsis added in italics)

"Credit Limit Worksheet—Line 13
1. Enter the amount from Form 1040, line 46, or Form 1040NR, line 44
2. Enter the total, if any, of your credits from Form 1040, lines 47 through 50, and Schedule R, line 22; or Form 1040NR, lines
45 through 47
3. Subtract line 2 from line 1. Also enter this amount on Form 5695, line 13. If zero or less, stop; you cannot take the nonbusiness energy property credit"

[tallguy]

You know, a simple, "Yes, your understanding is correct" would have sufficed.... ;D

[mwcpa]

the extra explanation for for other readers that may have had a similar question... this forum is not for one one one interaction.