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February 28, 2025
Question

We own solar panels and get an amount paid to us each month for production through a MA program. I have a 1099-Misc for this, can my solar panel payment be an expense?

  • February 28, 2025
  • 1 reply
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This is through the SMART solar incentive payment

    1 reply

    February 28, 2025

    No.  This amount should be entered as 'Other Income' on your 1040 and not subject to self-employment tax.  Since it is not business income you can't deduct expenses from it.

     

    In addition you already deducted the full value of the solar panels when you got a solar panel tax credit in the year that you had them installed.  Deducting them again would be double dipping.

     

    @MeghanCAyres 

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