Page 174 - TaxAdviser_Jan_Apr23_Neat

CASE STUDY

Special rules B. The expenditures allocated to any Allocation of expenditures
Rules similar to the joint occupancy individual for the tax year in which the If less than 80% of the use of an item
and allocation of expenditure rules calendar year ends is an amount equal is for nonbusiness purposes, only that
for the residential clean energy credit to the lesser of — portion of the expenditures for the
apply for purposes of the energy- 1. The amount of expenditures made item that is properly allocable to use
efficient home improvement credit. by such individual with respect to for nonbusiness purposes is taken into
such dwelling during such calendar account (Sec. 25D(e)(7)).
Joint occupancy rules year, or
In the case of any dwelling unit that is 2. The maximum amount of such ex- Basis adjustments
jointly occupied and used during any penditures set forth in item 1 above The basis of the property must be
calendar year as a residence by two or multiplied by a fraction (i) the reduced by the amount of the credit
more individuals, the following rules numerator of which is the amount allowed (Sec. 25C(g), as amended by
apply with respect to qualified fuel cell of such expenditures with respect the act). ■
property (Sec. 25D(e)(4)): to the dwelling made by the indi-
A. The maximum amount of expen- vidual during the calendar year, and
ditures that may be taken into (ii) the denominator of which is Contributor
account by all such individuals the total expenditures made by all
with respect to the dwelling unit such individuals with respect to the Patrick L. Young, CPA, is an executive
during the calendar year is $1,667 dwelling during the calendar year. editor with Thomson Reuters Checkpoint.
in the case of each half-kilowatt of C. Items 1 and 2 are applied separately For more information about this column,
capacity of the fuel cell property (as with respect to each qualified fuel cell contact thetaxadviser@aicpa.org.
defined in Sec. 48(c)(1)). property expenditure.

Demonstrate your

expertise with an

AICPA credential.

If you have a specialized interest, you can build on
the value you offer your clients, firm or organization
by adding an AICPA Advisory Services credential.
We offer six in a variety of specializations to
increase your opportunities, credibility and earning
power. And inspire trust and confidence!

Learn more at aicpa.org/credentials

© 2021 Association of International Certified Professional Accountants. All rights reserved. 2103-62839

4/29/21 9:48 AM
2103-62839 Credential Ads_CMYK.indd 2
60 March 2023 The Tax Adviser