new roof qualifies for solar tax credit?

[chunglau]

I installed a new roof earlier this year, so that I can install solar panels. The old roof was a light weight tile roof that was hard to walk on without breaking tiles. It was not leaking. If 20% of the new roof has solar panels on it, can I prorate the roof cost and apply for solar tax credit on that amount? Thanks.

[sensij]

I installed a new roof earlier this year, so that I can install solar panels. The old roof was a light weight tile roof that was hard to walk on without breaking tiles. It was not leaking. If 20% of the new roof has solar panels on it, can I prorate the roof cost and apply for solar tax credit on that amount? Thanks.

You can do whatever you'd like with your taxes. The advice you might get in this forum will not help you much if you find yourself in an audit, so you would be better off talking to a tax professional if you are unsure of what to do. From the instructions of form 5695:

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.

That same wording is used in the actual tax code (linked in different thread by thejq)

Also keep in mind that the federal guidelines might be different than any regional or local incentives that might be available.

[foo1bar]

You can do whatever you'd like with your taxes. The advice you might get in this forum will not help you much if you find yourself in an audit, so you would be better off talking to a tax professional if you are unsure of what to do. From the instructions of form 5695:



That same wording is used in the actual tax code (linked in different thread by thejq)

Also keep in mind that the federal guidelines might be different than any regional or local incentives that might be available.

I thought that wording was there for the shingles-that-are-also-solar-panels products.
But your interpretation seems logical as well.

I'll second the "talk to your tax professional" advice.
If you get bad advice from a message board, you're on your own.
If you get bad advice from a licensed/enrolled tax adviser, (especially if it's a "covered opinion") you have the preparer who will make your case to the IRS, and probably the preparer's errors-and-ommisions insurance to cover you, and if it's a "covered opinion" you can potentially avoid some of the penalties from the IRS. (the way I see it, you can prove it wasn't fraud, it was an honest disagreement on tax law interpretation)

[silversaver]

Some of CPA probably will not give you a correct answer.......err They only need to see the actual invoice (what listed up there) so they can pre your tax for ya.

[chunglau]

You can do whatever you'd like with your taxes. The advice you might get in this forum will not help you much if you find yourself in an audit, so you would be better off talking to a tax professional if you are unsure of what to do. From the instructions of form 5695:



That same wording is used in the actual tax code (linked in different thread by thejq)

Also keep in mind that the federal guidelines might be different than any regional or local incentives that might be available.

I talked with my tax accountant already. He is as clueless as me .

[sensij]

I talked with my tax accountant already. He is as clueless as me .

There are installers who will roll 100% of the roofing charge along with the solar installation into a single "solar" invoice to support tax documentation. There are other installers who insist that the invoices be kept separate, and want no part of what they see as liability for misrepresenting the costs of solar to the federal government. Vendor liability seems possible, if unlikely, since the tax form instructions I linked previously include the following:

Manufacturer’s certification.
For purposes of taking the credit, you can rely on the manufacturer’s certification in writing that a product is qualifying property for the credit.
Do not attach the certification to your return. Keep it for your records.

I haven't come across anyone who can provide a written clarification from the IRS to justify their interpretation. Common sense only really allows one answer to the question of "should my shingle roof be eligible for a solar credit?", but there are people who can justify anything. Law and Ethics and Common Sense frequently disagree.

The way I see it, if my installer approaches the tax question with integrity, the chance that they are approaching the entire transaction with integrity is significantly improved. Many people who cut corners make a practice of it.

[Sunking]

I talked with my tax accountant already. He is as clueless as me .

Fire him and find a Pro. I recommend my Tax Attorney Ben Dover over at Dewey Cheatham & Howe law firm. For you ladies Ben is also a Family Lawyer and can get rid of that unwanted 200 pounds of useless fat hanging around your house and take him for every penny he has ever made and will make in the future.

[silversaver]

Fire him and find a Pro. I recommend my Tax Attorney Ben Dover over at Dewey Cheatham & Howe law firm. For you ladies Ben is also a Family Lawyer and can get rid of that unwanted 200 pounds of useless fat hanging around your house and take him for every penny he has ever made and will make in the future.

You can find a CPA with 30 yrs experience still clueless about all details about solar addition.

[dat]

I installed a new roof earlier this year, so that I can install solar panels. The old roof was a light weight tile roof that was hard to walk on without breaking tiles. It was not leaking. If 20% of the new roof has solar panels on it, can I prorate the roof cost and apply for solar tax credit on that amount? Thanks.

In my opinion, if the roof is installed the same time and same billed with the solar panels by the same contractor, then yes. If the roof is installed first, then a different contractor installed the solar system, then no. The key is they must be in the same invoice.

[sensij]

In my opinion, if the roof is installed the same time and same billed with the solar panels by the same contractor, then yes. If the roof is installed first, then a different contractor installed the solar system, then no. The key is they must be in the same invoice.

The key to what? Defending yourself in an audit? Are you even remotely qualified to be commenting on that? Maybe it goes without saying, but it would be beyond foolish for someone to make tax decisions based on the unsupported opinions of some random people on the internet.

[russ]

The key to what? Defending yourself in an audit? Are you even remotely qualified to be commenting on that? Maybe it goes without saying, but it would be beyond foolish for someone to make tax decisions based on the unsupported opinions of some random people on the internet.

You are correct - the analysis is nonsense and the accountant is an important person.