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Level 3
February 4, 2023
Question

Can solar pannel credits be claimed for more than one year?

  • February 4, 2023
  • 4 replies
  • 24 views

I have a client that is financing solar pannels and was told that he could claim a percentage of the credit for more than one year. Does anyone know anything about this? I was aware that solar pannel credits can only be claimed for the year that they were bought, maybe he is confused?

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4 replies

Level 6
February 4, 2023

You claim the full amount on 5695 and any unused credit is carried forward.

 

Dusty

qbteachmt
Level 15
February 4, 2023

"I was aware that solar pannel credits can only be claimed for the year that they were bought,"

It's an asset, so it falls under the asset rules of "in service" and "complete." Not over years and years for the same system.

If your client was told this by the sales person, then...Duh.

Don't yell at us; we're volunteers
Skylane
Intuit Community Champion
February 4, 2023

I love when client tells me the salesman said…. I tell them to have the salesman do their tax return…. Just read the instructions, you’ll do it correctly 

edit:   I installed the first solar panels in 1985. The salesman told me that it was renewable energy as long as the sun kept circling,  and not only was the energy renewable but so was the tax credit… so after an initial investment of only  $8650 …the tax credit has amounted to 73,432. 

If at first you don’t succeed…..find a workaround
qbteachmt
Level 15
February 5, 2023

"so after an initial investment of only $8650 …the tax credit has amounted to 73,432."

Well, sure, but that was back when a dollar was worth a dollar.

Don't yell at us; we're volunteers
Level 8
February 5, 2023

This is why you are the preparer and he is the client. And always remember, sales staff will say anything to make the sale. Thats why they are salesmen and you are the preparer. Always go with your research and prior knowledge.