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April 14, 2021
Question

Tax Year 2020 - If I added solar to my home and included that cost in the refinancing of my mortgage, is that considered pulling money out?

  • April 14, 2021
  • 1 reply
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If I added solar to my home and then included that cost in the refinancing of my mortgage, is that considered pulling money out?

1 reply

April 14, 2021

No. The cost of solar installation is considered home improvement but non-deductible. The capital improvement (adding value to the house) cost can be added to the tax basis in the house. The mortgage interest after refinancing is fully deductible (mortgage limit applies).  You may also claim a residential energy credit up to 26% (2020) on the cost of the solar

 

April 17, 2021

Thanks!