solar tax credit

ldiorio

just wondering if i can take the tax credit if i purchase the equipment by the end of the year and not install it until 2013
lou

solar_dave

Re: solar tax credit

I believe the system has to be operational to claim the credit.

Vic

Re: solar tax credit

For the USA, believe that the IRS terminology is that the equipment must be "placed in service" in the year that the deduction is taken. Have not looked recently for any changes. Buy it anyway! Vic

SCharles

Re: solar tax credit

So, you want all invoices to have dates pre-Dec 31, and I suggest the sooner the better. Might be interesting trying to explain to an auditor how you got the system done in one or two days to beat the deadline.

On the other hand, once you have those invoices, who's to know when you actually installed the system.

Just sayin'.

Of course, you can always just wait to take the credit next year and relax.

GreenPowerManiac

Re: solar tax credit

Go ahead and buy everything you need (equipment only) for this year. Get a Federal tax credit for it 30% this tax year. Up to $6500 tax credit, roughly $22000 spent on equipment not including labor. Make sure you have paid in enough tax dollars and mortgage interest to smother the taxes owed. See IRS form 5695 for more details.

State works a bit different: Illinois works like this: Issues a lump sum paycheck and MUST be claimed in the following years Federal taxes as INCOME along with the State too. Be ready for this, cause it came back to bite the next tax year. They knit-pick and piecemeal everything, so the rebate is around 22% rather than the full 30% cause of labor they don't pay for. Also, the state may have a waiting list, so sign up ASAP to obtain a rebate check when/if approved during their funding fiscal year beginning.

Equipment includes: Wiring, conduits, circuits, breakers, charge controllers, batteries and anything related to its cause, so buy it up now.

Blackcherry04

Re: solar tax credit

GreenPowerManiac wrote: »

Go ahead and buy everything you need (equipment only) for this year. Get a Federal tax credit for it 30% this tax year. Up to $6500 tax credit, roughly $22000 spent on equipment not including labor. Make sure you have paid in enough tax dollars and mortgage interest to smother the taxes owed. See IRS form 5695 for more details.

State works a bit different: Illinois works like this: Issues a lump sum paycheck and MUST be claimed in the following years Federal taxes as INCOME along with the State too. Be ready for this, cause it came back to bite the next tax year. They knit-pick and piecemeal everything, so the rebate is around 22% rather than the full 30% cause of labor they don't pay for. Also, the state may have a waiting list, so sign up ASAP to obtain a rebate check when/if approved during their funding fiscal year beginning.

Equipment includes: Wiring, conduits, circuits, breakers, charge controllers, batteries and anything related to its cause, so buy it up now.

Before taking this advice You should talk to a tax expert. The system has to be " Installed and put into Service " to qualify. You can deduct anything on a 1040 you have guts enough to deduct, that doesn't mean the IRS will take the same view. Check IRS Form f5695.

GreenPowerManiac

Re: solar tax credit

That's what receipts are for, save them against IRS audit, if applicable. Everything stated earlier is based on experience, not theory.

Blackcherry04

Re: solar tax credit

GreenPowerManiac wrote: »

That's what receipts are for, save them against IRS audit, if applicable. Everything stated earlier is based on experience, not theory.

Please post it in writing from the IRS and I'll take you word for it. Everything on the Form 5695 says " Installed " and must be part of the Roof structure, not parts in a box.

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.

Qualified solar electric property costs. Qualified solar electric
property costs are costs for property that uses solar energy to
generate electricity for use in your home located in the United
States. No costs relating to a solar panel or other property installed
as a roof (or portion thereof) will fail to qualify solely because the
property constitutes a structural component of the structure on
which it is installed. The home does not have to be your main home.

GreenPowerManiac

Re: solar tax credit

So buy the stuff, then put it on shelf, installed, done. One installation this year, another one next year. Two installations, one project.

Scared ? Do it next year. The IRS can go after ANYONE who gets money back.

Cariboocoot

Re: solar tax credit

GreenPowerManiac wrote: »

So buy the stuff, then put it on shelf, installed, done. One installation this year, another one next year. Two installations, one project.

Scared ? Do it next year. The IRS can go after ANYONE who gets money back.

True, but they only prosecute the ones who are lying.
Putting it on a shelf would not fit with their definition of "installed" and they are the ones who get to say.

I'm going to suggest that everyone stop handing out tax advice on the forum, please. Unless you actually are a tax professional and are willing to stand up for your advice.
My wife is such a professional and I've heard a lot about it over the years. The short form is: you can claim anything - until you get caught.

And no I don't proffer advice in this field because I am not a tax professional and I don't even live in the U.S.A. Our two systems are similar in many ways, but definitely not identical.

GreenPowerManiac

Re: solar tax credit

Everyone's correct in their own way. Chances are better in winning the lottery than being audited when taken to a tax accountant. Just for insight, call your local accountant to check your options. You might be surprised on what's claimed.