Question

residential energy credit

Forum|Forum|2 years ago
January 9, 2024
1 reply
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if there are two (not spouses) residents of home, can they each pay half cost of solar panel installation and claim the amount they have paid on their individual tax returns?

O

Opus 17

Employee

Yes.

J

jandeefujimotoAuthor

Thanks. Looking at turbotax directly I see a question regarding joint "ownership" of property. It is my understanding that you need to be a resident of the property, but not necessarily an owner, in order to qualify for residential clean energy credit. Turbotax seems to have installed only one Q&A easy step for both energy efficient and residential clean energy credits yet does not provide an option for sharing residence without ownership with regards solar. Can I say "yes" to the "do you share ownership" question in easy step, or is there a different section of turbotax that I should be using?

O

Opus 17

Employee

@jandeefujimoto wrote:

Thanks. Looking at turbotax directly I see a question regarding joint "ownership" of property. It is my understanding that you need to be a resident of the property, but not necessarily an owner, in order to qualify for residential clean energy credit. Turbotax seems to have installed only one Q&A easy step for both energy efficient and residential clean energy credits yet does not provide an option for sharing residence without ownership with regards solar. Can I say "yes" to the "do you share ownership" question in easy step, or is there a different section of turbotax that I should be using?

There are some energy efficient credits where you must use the home as a residence (you don't have to own or use it as your main residence). There are other credits where you must use the home as your main home, and some credits you must be an owner. Without looking over all of IRS section 25C and 25D, I can't list them out for you, but the solar panel credit is one where you only have to use the home as a residence. You don't have to own it or use it as your main residence.

Turbotax has not updated the energy efficiency credits for 2024 yet, the estimated date is January 17. Check back then. If you still aren't sure, ask here.

However, there are other significant legal risks to installing solar panels on a home you don't own. In most states, when an improvement is permanently installed on a piece of real estate (real property), the owner of the real property becomes the immediate owner in full of whatever is installed, no matter who pays for it. If you pay for solar panels on a property you don't own, and you have a falling out with the owner, you may never recoup the cost.