Question

claiming solar array depreciation when I got line 3 income 1099-misc for State electricity generation

Forum|Forum|5 years ago
April 20, 2021
1 reply
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I got a 1099 misc reporting my SMART (Eversource) incentive payments for solar power generation.

This looks like "business income" even if it is just under $700. If I were to claim the depreciation for the solar array which produces the electricity for which I am receiving this incentive, I would get a significant tax deduction. Can I do that?

When the array was installed at the end of 2019, I was able to claim the "REsidential energy efficient property credit" I feel it would be reasonable to subtract that figure from the cost of the array, and use that figure as the basis for the depreciation.

Benigno

Critter-3

Since you are not in the business of producing power and they issued a box 3 1099-misc then this is not self employment to be listed on the Sch C instead it is other income to be reported on Sch 1 line 8 and no expenses can be deducted on that income.