Should I report the loan amount for a solar project that was paid for partially in 2020 but is still continuing into 2021?

Forum|Forum|5 years ago
February 18, 2021
1 reply
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We started the project this fall and have a loan from a bank for the payment. We have made one payment to the solar installation company, but are waiting on an electrician to finish the project and install. I have been making loan payments, however, since fall 2020. Is this something I just wait to report in 2021? Or do I do part of it for 2020 and the rest of the amount in 2020?

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MinhT1

You do not report the loan on your tax return. Interest paid on the loan is not tax deductible and is not reported on your tax return either.

When your solar project is completed and put in service in 2021, you will claim the solar tax credit based on the total cost of your installation on your 2021 tax return.

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