Solar Panels and the tax credit for Rv's

[Ozz]

I think it expired the last of 2014, but I got my system in before that date, my question to the learned readers of this Forum: Have any of you done taxes and had solar installed last year? If so, how did the tax credit go for you?
Sue just got our taxes ready for the tax man, she hates tax prep time. I don't mind it, because she does it...

[waynemoore]

Ozz, if I remember the tax credit is on primary home only. I just checked my book and I am correct. Primary residences only. It is nonrefundable ( if you have any non refunded tax money you can get the credit to the limit on the nonrefuned tax) Sorry in know confusing. If you PM me I will send you the IRS code.

[pineranch]

Pay the tax man Ozz, whole bunch of deadbeats counting on you.
Mike

[Ozz]

Thanks Wayne! I thought I read somewhere it is deductible. But, that is why I am asking.
Mike I am so poor, I probably won't owe anything anyway.
Poor as a Church mouse... so Poor I can't pay attention... so Poor if it cost a nickel.. oh wait I can't put that on here..

[PapaBeav]

We had solar put on our rig 2 years ago and wrote it off that year.

[Ozz]

quote:Originally posted by PapaBeav

We had solar put on our rig 2 years ago and wrote it off that year.

Could you elaborate on that please? Tax credit, tax.. something?

[7.3Ford]

Jim,

I don't know what it is for 2014, but in 2010 I got a credit of $647.00 for the tax I owed from my solar. In 2010 it was Form 5695 "Residential Energy Credits"

Part 1, first question is "Were the qualified energy efficiency improvements or residential energy property costs for main home located in the United States?" Answer "NO", it then tells you skip Part 1. In Part 2, put in your #12 "Qualified solar electric property costs", fill out rest of Part 2, and you still get 30% of the cost taken off the tax you owe.

Part 1 (main home) includes tax credit for many thing not include in Part 2, but solar electric is on Part 2.

[Ozz]

Thanks, I will run this by my number cruncher/bean counter.

[Bigboomer]

Ozz,

The credits are still good until 2016. I ordered and completed our system by the end of 2013 and took the full 30 percent credit on the cost.

See the link below for info....don't cheat yourself....get everything you can before it goes away or they give it to something else less deserving!

http://www.solar-electric.com/soentaxcr.html/

[Ozz]

That's a fact Thanks Buddy.

[waynemoore]

Ok guys if you look at the Federal Form 5695 page one line 1 to line 11 IS if YOU Carry Forward from 2012

Then go to page two line 17a that's where you would check yes or no if the improvements were to the main home. It says and I quote "if you checked the NO box you can not claim the nonbusiness energy property credit." DO NOT COMPLETE PART 2.

Publication 17 (Tax Bible) says only the main or primary resident.

Now all that being said the vast majority of the IRS regs and rules start with two words. "Generally speaking" Everything is a bit grey. You can do most anything you want till you get the letter from the IRS. However states can and do handle credits different from the Feds.

I hope this helps. But do as you like I have seen clients take credits that make me wonder if the IRS even looks at the returns.

[Ozz]

I would rather eat the deduction or credit rather than take any chance on a audit. No day on the beach there..
I will see what my CPA says.

[waynemoore]

Ozz.The following is from PUB 17 off of the IRS site. You make the call.



What's New


Separate instructions. Starting in 2014, the instructions for Form 5695 are separate from Form 5695.

Nonbusiness energy property credit. The nonbusiness energy property credit has been extended through December 31, 2014.





Purpose of Form


Use Form 5695 to figure and take your residential energy credits. The residential energy credits are:


•The residential energy efficient property credit, and


•The nonbusiness energy property credit.




Also use Form 5695 to take any residential energy efficient property credit carryforward from 2013 or to carry the unused portion of the credit to 2015.





Who Can Take the Credits


You may be able to take the credits if you made energy saving improvements to your home located in the United States in 2014.

Home. A home is where you lived in 2014 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.
You must reduce the basis of your home by the amount of any credit allowed.





Main home.


Your main home is generally the home where you live most of the time. A temporary absence due to special circumstances, such as illness, education, business, military service, or vacation, will not change your main home.

Costs. For purposes of both credits, costs are treated as being paid when the original installation of the item is completed, or, in the case of costs connected with the reconstruction of your home, when your original use of the reconstructed home begins. For purposes of the residential energy efficient property credit only, costs connected with the construction of a home are treated as being paid when your original use of the constructed home begins. If less than 80% of the use of an item is for nonbusiness purposes, only that portion of the costs that is allocable to the nonbusiness use can be used to determine either credit

[Ozz]

Thanks for the trouble of posting this Wayne, appreciate the info, I will talk it over with the tax guy.

[Drifty1]

Ozz, could you PM me with your findings as we are in the same boat... Or you could give me a call...

[Ozz]

You bet, our appointment is this coming week sometime.

[PapaBeav]

quote:Originally posted by Ozz

Could you elaborate on that please? Tax credit, tax.. something?

Tax Credit

[trfield58]

Ozz, I'm not an expert by any means, but AM Solar claims the tax credit can be taken by owner's of RVs

http://www.amsolar.com/home/amr/page_59/taxcredit.html


Tim

[DQDick]

I'll be taking mine this year and since we just added more, next year if they let you do it twice. I always save my iffy deductions and when they audit I refile with all the crap added in. I haven't been audited in some time because I think they have me flagged. We went at it four times during my business life and they had to pay me three of the four. I actually did make a mistake once and had to pay a little, but net I'm ahead of them several thousand.

[waynemoore]

Dam I hate this when this happens but I may just be wrong about the solar tax credit. It appears that only geo thermal is restrected to the main home. You can take it on more than one home, main home and second home. But not a rental???? Why not a rental because it is in fact a business and the credit is for non business. My sincere apologies to the group. But remember I have only been in the business for 21 years so some of this is still new to me.