Level 5

Solar panel credit

Forum|Forum|4 years ago
March 17, 2022
3 replies
17 views

I have a client who claims the solar panel company told her she can receive up to $11,000 dollars back

through her refund for adding solar panels to her new home. The taxpayer is a first-time homebuyer and received an FHA loan. Is there an article in that I can show my client the actual credit? She is a new client and I want to make sure to give her the right information.

This topic has been closed for replies.

R

rose323Author

Level 5

In addition, if they are only making payments are they able to write off the whole amount at one time.

qbteachmt

Level 15

The IRS knows:

https://www.irs.gov/newsroom/energy-incentives-for-individuals-residential-property-updated-questions-and-answers

https://www.irs.gov/instructions/i5695

TurboTax knows:

https://turbotax.intuit.com/tax-tips/going-green/federal-tax-credit-for-solar-energy/L7s9ZiB4D

Often, the installer does not know. They know nothing about your client's finances, typically.

Don't yell at us; we're volunteers

qbteachmt

Level 15

I found another article that might be helpful to your client:

https://www.energy.gov/eere/solar/homeowners-guide-federal-tax-credit-solar-photovoltaics

Don't yell at us; we're volunteers

R

rose323Author

Level 5

Awesome, Thank you

sjrcpa

Level 15

Those solar salespeople will say anything to make sale.

If client purchased and financed it, it still qualifies. If they are leasing it, then it does not.

The more I know the more I don’t know.

BobKamman

Level 15

But not your clients, right? Because they always call you first before making tax-related decisions.

Solar is a worthy cause, but a $30,000 system is priced at $40,000 as soon as a $10,000 tax credit is offered. I just had a client who bought one and then converted a chunk of IRA money to a Roth, so that his tax liability would use up the credit. Not something I would have suggested, but in this particular case I wouldn't condemn it. Then there is the client with a $6,000 carryover credit and no taxable income for the rest of her retirement life.

sjrcpa

Level 15

"Then there is the client with a $6,000 carryover credit and no taxable income for the rest of her retirement life. "

I've got one of those, too.

The more I know the more I don’t know.

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