Question

Sale of solar system to to utility 1099-MISC

Forum|Forum|4 years ago
March 26, 2022
1 reply
0 views

Hi: I purchased panels in a community solar array several years ago. Last year, the community solar company went under and our local utility offered to buy my panels, otherwise I had to remove them. I took their offer and received a 1099-MISC from the transaction. I would like to report the cost and the income from sale but cannot figure out where to do that on Form 1040. Anyone know?

E

ErnieS0

Report this as sale of personal property. Your gain or loss will be the purchase price less your cost.

Losses on personal property are not deductible, but you should report this because you received a Form 1099-MISC. The IRS will assume your profit is the number on the 1099-MISC and tax you on that unless you tell them otherwise.

You don't say what version of TurboTax you are using.

Type investment sales in Search in the top right
Select Jump to investment sales (you may have to upgrade)
On Let's import your tax info, tap Enter a different way at the bottom
Select Other and continue through the screens

Subtract any solar energy credit you claimed from the cost.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

R

RSCTaxHelpAuthor

Thanks, I did that but the loss has lowered my tax owed since it thinks it is an investment loss. That does not seem right. I could lower my basis to make it balance or try to add another cost?

R

RSCTaxHelpAuthor

I think I got it figured out. I chose the check mark for "collectible" sale and it gave me another set of options. One of them was that it was sale of personal property. When I selected that, my previous tax owed returned. I think that I am set, thanks