Last year, we did our solar as a business to get the 80 percent depreciation. This year, I am trying to get it again but do not know how to do it.

Forum|Forum|1 year ago
February 16, 2025
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Do i need to run it as a business again or just take the carry over as the depreciation

PatriciaV

Employee

If you were unable to claim the full amount of the special "bonus" depreciation last year, TurboTax would have carried the unused portion forward to your current tax return. The carry over deduction should be automatically applied. Look at Form 8582 Passive Activity Loss Limitations.

Note that you can claim special depreciation only once for an asset and only in the year it was placed into service. You should see additional depreciation expense in subsequent years, based on the remaining balance after the special depreciation was applied.

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cunninghamsubscriptionsAuthor

Thank you.

I had a follow up

So we had a tax place do it for us last year as the forms were not in for a while on turbo tax and we needed to get it done. I am not sure how they did it but i know they did not use turbo tax.

If this is the case, no need to file Schedule C this year and i have the form that shows me each year how much Credit I get to use. Is the below the carry over I would claim, no need for another section C?

For you additional information, this is how depreciation will be deducted for tax purposes:

20% in the first year

32% in year two

19.2% in year three

11% in year four

11% in year five

and the final portion in year six, 5%

PatriciaV

Employee

If you reported this solar installation on Schedule C last year, you will need to continue to include Schedule C with your tax return until it is fully depreciated. There is no other way to report depreciation except for a business or rental property.

For additional help, see Where do I enter Schedule C?

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