Has anyone had any experience in purchasing tax credits and using them to get a refund?
There are both State Tax Credits and Federal Tax Credits. I was approached by my financial adviser who introduced me to an accountant who does the books for a clean energy/green coal company. They have millions in federal clean coal tax credits that have been saved over the last 10 years and they want to sell some. (They get taxed at capital gains for the sale of tax credits).
Tax Credit Sale Favorably Taxed - Forbes
Essentially I would pay 75 cents for every $1 in tax credits. Allowing me to save around 25% on my federal taxes per tax credit I purchased. The credits can go back 1 year or forward 20 years. Weird part is I have to wire the money for the tax credits, then I get issued a K1 and can refile taxes and have the IRS send me a refund for 2011.
Just wanted to get a feel if this is legit or not - or if I am going to get screwed by this company/accountant along with pissing off the IRS. I have tried searching online for State Tax Credits as well (specifically for California) and federal credits, but have had no luck finding any for sale. My accountants also said no clients of their entire firm are using tax credits - so that is weird.
There are both State Tax Credits and Federal Tax Credits. I was approached by my financial adviser who introduced me to an accountant who does the books for a clean energy/green coal company. They have millions in federal clean coal tax credits that have been saved over the last 10 years and they want to sell some. (They get taxed at capital gains for the sale of tax credits).
Tax Credit Sale Favorably Taxed - Forbes
Essentially I would pay 75 cents for every $1 in tax credits. Allowing me to save around 25% on my federal taxes per tax credit I purchased. The credits can go back 1 year or forward 20 years. Weird part is I have to wire the money for the tax credits, then I get issued a K1 and can refile taxes and have the IRS send me a refund for 2011.
Just wanted to get a feel if this is legit or not - or if I am going to get screwed by this company/accountant along with pissing off the IRS. I have tried searching online for State Tax Credits as well (specifically for California) and federal credits, but have had no luck finding any for sale. My accountants also said no clients of their entire firm are using tax credits - so that is weird.
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