Solar Tax Credits

[wfred]

All:

I'm starting to seriously consider adding solar to my trailer now that our state is matching 60% of the federal energy tax credit. For those of you that have taken advantage of the tax credits, I have a couple of questions.

1.) Can/did you include the cost of the batteries? I have seen several briefs about an IRS ruling confirming the cost of the batteries can be included.

2.) What paperwork do you need in addition to the IRS form 5695? Is it as simple as totaling your receipts and adding it to the form or is there more paperwork I need to present?

Thanks for the help,

Fred

[Bumpyroad]

D & M wrote:

n7bsn wrote:
Personally I would find a Tax expert on Solar Credits and ask them, not us morons in a forum,
I would -not- be surprised that RVs are excluded.

x2. Unless any of us morons are really tax accounts and are willing to put their name and reputation behind their answer, I would seek out professional advice.

And really, since we are not talking about a solar farm here, how much are you going to get? If you are scrubbing around for tax pennies, perhaps you shouldn't own a RV anyway.

Is it really worth the potential hassle?

But I can imagine you are talking in the $1,000s and doesn't that come right off the taxes, not reduced to 20-30% of what you spend as a deduction?
bumpy

[D___M]

n7bsn wrote:
Personally I would find a Tax expert on Solar Credits and ask them, not us morons in a forum,
I would -not- be surprised that RVs are excluded.

x2. Unless any of us morons are really tax accounts and are willing to put their name and reputation behind their answer, I would seek out professional advice.

And really, since we are not talking about a solar farm here, how much are you going to get? If you are scrubbing around for tax pennies, perhaps you shouldn't own a RV anyway.

Is it really worth the potential hassle?

[EsoxLucius]

1. Yes
2. Yes

We received the credit for our RV solar installation on our 2013 Federal income taxes. The batteries and inverter for the system were eligible for the credit.

[Supercharged]

I don't think it should be allowed, and I don't have it, so I don't want it to be taken off taxes.

[wintersun]

Whatever is in the installer's invoice is included and that can include batteries, panel mounts, and with our house it included a new roof. No point in putting a 30-year solar array on a roof that is going to need to be replaced in 10 years time.

Smart move as electrical rates have already tripled in many parts of the country over the past 10 years and with global warming it is going to get much worse and with more demand comes higher prices.

Get it while you can as the Koch brothers whose businesses profit from dirty coal and oil production have already succeeded in getting the tax credit for solar killed in Oklahoma. Now the billions in subsidies for coal and oil and natural gas and nuclear power are not touched as those are "good" subsidies.

[Bumpyroad]

mich800 wrote:

wfred wrote:

Bumpyroad wrote:
that law was extended then expired at the end of 2013, did it get extended? I think at the time I asked the tax lady it hadn't been.
bumpy

The law has been extended through 2016 and Iowa will match 60% of the federal credit up to $5000. Effectively I get 48% of the total cost of my solar setup as a tax credit.

From everything I've read and the information here, it sounds like i simply total the amount of all the components and add them to IRS form 5695. It doesn't sound like anybody has included the cost of battery upgrades for their system as part of the tax credit. I'll consult my CPA on that, seems like the IRS ruled it is allowed but that doesn't mean it won't get red-flagged somehow.

Thanks for the help,

Fred

It has been a long time since I looked at this. But I seem to remember that there were different treatments depending on if it was grid tied. Maybe that is where the different interpretations come in. Either way, if you can get some of your tax dollars back for something you were going to do anyways you should do it. You could always just delete your receipts before the audit 🙂 At least that works for big brother.

my hard drive got scratched.
bumpy

[mich800]

wfred wrote:

Bumpyroad wrote:
that law was extended then expired at the end of 2013, did it get extended? I think at the time I asked the tax lady it hadn't been.
bumpy

The law has been extended through 2016 and Iowa will match 60% of the federal credit up to $5000. Effectively I get 48% of the total cost of my solar setup as a tax credit.

From everything I've read and the information here, it sounds like i simply total the amount of all the components and add them to IRS form 5695. It doesn't sound like anybody has included the cost of battery upgrades for their system as part of the tax credit. I'll consult my CPA on that, seems like the IRS ruled it is allowed but that doesn't mean it won't get red-flagged somehow.

Thanks for the help,

Fred

It has been a long time since I looked at this. But I seem to remember that there were different treatments depending on if it was grid tied. Maybe that is where the different interpretations come in. Either way, if you can get some of your tax dollars back for something you were going to do anyways you should do it. You could always just delete your receipts before the audit 🙂 At least that works for big brother.

[wfred]

Bumpyroad wrote:
that law was extended then expired at the end of 2013, did it get extended? I think at the time I asked the tax lady it hadn't been.
bumpy

The law has been extended through 2016 and Iowa will match 60% of the federal credit up to $5000. Effectively I get 48% of the total cost of my solar setup as a tax credit.

From everything I've read and the information here, it sounds like i simply total the amount of all the components and add them to IRS form 5695. It doesn't sound like anybody has included the cost of battery upgrades for their system as part of the tax credit. I'll consult my CPA on that, seems like the IRS ruled it is allowed but that doesn't mean it won't get red-flagged somehow.

Thanks for the help,

Fred

[Bumpyroad]

that law was extended then expired at the end of 2013, did it get extended? I think at the time I asked the tax lady it hadn't been.
bumpy

[dahkota]

We took the deduction for installing solar on our tt. At the time, it was our second home.

Here is the information on IRS.gov. It specifically states:
"You must install qualifying equipment in connection with your home located in the United States. It does not have to be your main home."

And:"A home includes a house, condominium, cooperative, mobile home, house trailer, boat, or similar property that has sleeping, cooking, and toilet facilities."

[SCVJeff]

n7bsn wrote:

Bumpyroad wrote:
I asked my tax lady about solar in my second home and was told it applies to primary residence only. all I get to do is deduct interest, etc. from my taxes
bumpy

SCVJeff wrote:
Well this morons tax guy says it is legal in this state since the motorhome is considered a second home, so the solar was deducted. As far as batteries are concerned... Don't push it... Wether or not you can tie those together, I doubt you will find an auditor that understands the story you whipped up.

Looks like two "experts" have different opinions.

If you have nothing to say, don't.
And if you were paying attention you would have noticed that BOTH comments came from a CPA or tax person. Besides, Bumpy is in a completely different state. So lighten up...

[12thgenusa]

TerriStar wrote:
Form 5695 asks if the solar panels were attached to your main residence. Says, if "no", deduction not allowed.

This is incorrect. That question is asked in Part II, Nonbusiness Energy Property Credit. The part that would apply to RVs is Part I, Residential Energy Efficient Property Credit. It specifically says that "The home does not have to be your main home".

[2oldman]

Bumpyroad wrote:
If you own a house and a RV, good luck on passing an audit.

I have taken a solar deduction twice, online,no paper. No audit yet.

The gov't loves it when you file online, because it's so much less work for them, and you.

[Bumpyroad]

TerriStar wrote:
Form 5695 asks if the solar panels were attached to your main residence. Says, if "no", deduction not allowed.

If you own a house and a RV, good luck on passing an audit.
bumpy