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Solar Panels


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Clients had solar panels installed on the small barn next to the house with wires for electricity connected to supply the house.  The original house is quite old with a funky roof, apparently.  The instructions require that they be for your 'main home' but also that the costs are 'for property that uses solar energy to generate electricity for use in your home.'  So the fact that the panels are on a building adjacent to the main living space should not be a problem, right?

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20 hours ago, Margaret CPA in OH said:

The instructions require that they be for your 'main home'

Except for fuel cells, the 25D credit is not just for the main home.  The solar credit is for any "property which uses solar energy to generate electricity for use in a dwelling unit located in the United States and used as a residence by the taxpayer."  So vacation homes, etc. qualify.   Only for fuel cells does it say "principal residence".

The Form 5695 instructions say:

Quote

A home is where you lived in 2023 and can include a house,
houseboat, mobile home, cooperative apartment, condominium, and
a manufactured home that conforms to Federal Manufactured Home
Construction and Safety Standards.

...

Qualified solar electric property costs.

The home doesn't have to be your main home.

 

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