Solar tax credit

Forum|Forum|7 years ago
August 20, 2018
3 replies
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Has anyone successfully used turbotax to claim the solar tax credit for rental property - using section 48 I think

Employee

I looked at IRC 48, and there's only sections (a) through (d). There is no 48(i) or 48(I). (Note that capitalization of letters matters.)

But from what I find on a Q&A page on the IRS website for IRC 25(C) and 25(D), IRS notice 2013-70 addresses your specific situation. Take a look at question/answer 6 and 7 on that notice at https://www.irs.gov/pub/irs-drop/n-13-70.pdf

Q&A #7 is the most specific, since the dwelling unit is used to conduct business. A rental property is a dwelling unit used to conduct business. So it doesn't qualify for any of the energy credits.

Carl11_2

Employee

My original response to this thread has been bugging me. With some highly appreciated help from a colleague I have corrected my original response. So please revisit the message board and re-read my original response which I have now edited and changed.

F

fgsherrilltAuthor

Employee

This accounting professor from University of Montana https://www.thetaxadviser.com/newsletters/2017/oct/credit-residential-solar-panels.html

says the investment tax credit for solar panels is allowed for rental property.

My question was how to enter it using turbotax

Carl11_2

Employee

The accounting professor at the University of Montana is not an IRS authority. Neither is the tax advisor website. The website and document I reference *IS* an IRS authority. If you want to pursue this, ask your accounting professor to sign a notarized legal document that makes them liable and culpable for all taxes, fines, penalties and late fees that will be assed on you, when the IRS audits you and disallows the credit. (will be in the thousands quite easily.)

CameronRobertson

Employee

Thanks for the verified info. This is really useful knowing that rental units are also able to make a claim. Previously I thought such tax offsets only apply to homeownerships. Regardless of the amount, every single tax claims plays a part in yearly payments.

J

joe12pack

wait I'm totally confused. Can we or can we not take the 30% credit on a residential rental property that had solar installed on it? Seems like the professor is correct but someone is saying he is wrong but the last message from CameronRobertson says we can take it after all?