pv system depreciation for rental

[Jeannine poling]

photovoltaic system used on rental, depreciate like real estate or the life of the components, 20y

[taxea]

If it was purchased rather than leased you can take the credit. To my knowledge the life is advertised as 25 years. I don't see why you couldn't take the improvements depreciation of 15 years.

[taxmom34]

I didn't know energy credit (? that taxea is referring to) could be taken on rental real property. for depreciation I would take rental real life (it is attached to the house and will not be removed to new residence if sold)

[taxea]

PV is not considered as part of the structure and is removable. the credit can be taken by the rental owner if the system was purchased, not if it was leased.

[WhiteOleander]

PV is not considered as part of the structure and is removable. the credit can be taken by the rental owner if the system was purchased, not if it was leased.

Where is your cite? Everything I have read, including TTB, states the credit is available for first or second homes but not rental properties.

[taxea]

Where is your cite? Everything I have read, including TTB, states the credit is available for first or second homes but not rental properties.

this is not the cite but perhaps it will help

offprofresp@irs.gov

[DexEA]

this is not the cite but perhaps it will help

offprofresp@irs.gov

Based on your knowledge and experience what leads you to believe that the credit can be taken on rental property?

Like WhiteOleander, I can't find any info to indicate the credit can be taken for anything but a first or second home either.

[WhiteOleander]

this is not the cite but perhaps it will help

offprofresp@irs.gov

I don't understand. You want me to email the IRS? To say what? I would really like to know where you found this info. I would like to be able to inform my co-workers that this credit is available for rental property. However, I can't tell them that my info came from "some girl on the web". I also can't support claiming the credit at an audit by saying "some girl on the web said I could". So, I was merely asking where you found the info.

[taxmom34]

I hope that taxea can come up with a cite, because I will be amending my sister's return to claim credit on her rental duplex, I took the credit on personal portion but not on rental portion.

[dodgedipduck]

this is not the cite but perhaps it will help

offprofresp@irs.gov

The email address for the Office of Professional Responsibility is opr@irs.gov.

[dodgedipduck]

photovoltaic system used on rental, depreciate like real estate or the life of the components, 20y

Depreciation is based on MACRS recovery period which is based on class life, not the life of the property. The only quesiton would be whether the solar panel system would be considered a structrual component of the underlying building, which would be 27.5 years for residential rental, or 39 years for nonresidential real estate.

Also not 15 year "improvement" property as stated earlier. The 15 year recovery period is for land improvements, not building improvements.

[Kram BergGold]

Solar

Two or three years ago I had NATP research this issue and sure enough solar panels get a credit on a rental property. So I claimed the credit. Then reduced the basis by the creidt and depreciated over 27.5 years.

[WhiteOleander]

Two or three years ago I had NATP research this issue and sure enough solar panels get a credit on a rental property. So I claimed the credit. Then reduced the basis by the creidt and depreciated over 27.5 years.

Can you provide the info they gave you that said this is the case? I would really like to know this.

[taxea]

I have tons of research that I have saved over several years. I did extensive research on PV credits both for clients and myself. I am not in the habit of providing cites because of the time factor of locating my source. If I have to prove my position with the IRS I will do so.
You have now had two posters stating that the result of research provided the information posted by us. If we could find the answer, so can you. If you would prefer to pay for my time I will be happy to find the cite for you.

I give posters the benefit of my experience and training, if you need documentation of my statements then do the research. You will remember it better if you take the time to look for it as we did.

As for capitalization/depreciation vs. repair/expense there is an excellent article in the Apr 2013 issue of CPE Journal

[WhiteOleander]

I have tons of research that I have saved over several years. I did extensive research on PV credits both for clients and myself. I am not in the habit of providing cites because of the time factor of locating my source. If I have to prove my position with the IRS I will do so.
You have now had two posters stating that the result of research provided the information posted by us. If we could find the answer, so can you. If you would prefer to pay for my time I will be happy to find the cite for you.

I give posters the benefit of my experience and training, if you need documentation of my statements then do the research. You will remember it better if you take the time to look for it as we did.

As for capitalization/depreciation vs. repair/expense there is an excellent article in the Apr 2013 issue of CPE Journal

Ah...............I have done research. My research proves you to be incorrect. So, since you will not even post your source for others to look at, I must believe that you do not have any such sources.