Purchased solar for rental property and where do get my tax credit

Forum|Forum|6 years ago
June 6, 2019
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MinhT1

The solar energy tax credit is not available for rental properties. It can only be used for residential homes.

Pleas read this TurboTax article for more information:

https://turbotax.intuit.com/tax-tools/tax-tips/Tax-Deductions-and-Credits/Federal-Tax-Credit-for-Sol...

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ksb2

Solar Energy Tax Credits (ITC) is available to businesses such as LLCs, that have rental properties.

The applicable IRS code that applies is ITC under paragraph 48 and as defined under Section 38.

Refer to section 48 (a)(3)(A) i. Form 3468 may be used to claim the ITC

jarcom

Hello,

I own a llc that does real estate. The address of the LLC is my home. Do you know if i can get solar panels in my house as part of section 48? I would rather do that as section 48 allows to carry back the tax credit one year and that's the part i am more interested in.

thanks,

AMBadri

Do I have to then reduce the basis of the solar panels by the amount of the credit for depreciation purposes ?

DianeW777

Not the solar credit, the Investment Tax Credit (ITC) for businesses. The solar energy credit is reserved for your main residence, NOT a rental property. You may be able to take the Investment Tax Credit (ITC) using Form 3468, if you qualify. See page 4, for Line 7, under Qualifying Advanced Energy Project Credit.

What is Form 3468 Investment Tax Credit

Sign into your TurboTax account > Search (upper right) > type form 3468 > press enter > select the Jump to ... link
Menu selection is Wages & Income > Other Business Situations > Business Credits Start or Revisit > Investment credit Start or Revisit
Regardless of your path begin to answer the questions and complete the section to receive your credit.

Yes, you must reduce your cost basis by the amount of the credit you receive

The details and qualifications can be reviewed here for the solar credit.

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bravo0123

Interesting the people here who just give wrong answers. The depreciation amount is 85% of the total cost. Yes the credit is 30% which would seem to lower the amount to 70%, but the IRS allows half of that credit to be counted. Thus 85%