US Federal IRS 26USC25Da1 + 26USC25Dd2

[Ulmo]

I have a question about 26USC25Dd2 as it applies to 26USC25Da1: in it it says "used as a residence by the taxpayer." I am looking for an attorney or anyone who can answer my question: is "residence" where I live? I live in my mom's house (she owns it) and I want to buy and own solar panels on her house and I get the 30% tax credit for 2016. I have plenty of federal tax to offset and she does not.

If you look at 26USC25Dd3, it refers to 26USC121, but 26USC25Dd2 does not.

"26USC25D" & "26USC121" can be Google'd, & law.cornell.edu has them one click away for free, so I won't put links myself.

[smily03]

I would assume that talking to a tax professional would be the best idea, because there's probably some guidance written up for that that they'd be able to access.

[solarix]

I've wondered about this as well. My understanding is you have to own the house (don't have to reside there though) in order to claim the 30% tax credit. I've had customers check with their tax people on this as well and received the same answer. However I don't understand how the leasing companies make it wok for them - I know they "own" the solar equipment but not the house. I'm sure they have some of the best tax people there are though.

[ButchDeal]

leasing companies are using the commercial incentive not the residential incentive. Different rules.

[Wy_White_Wolf]

A leasing company is a business so they follow a different set of tax codes.

[Ulmo]

I already hired one tax professional, but he was only able to refer me to the same material that I am reading now, and he did not define residence the same as me, mentioning it as part of section 121 or something.

[nomadh]

It mentions residence but doesn't it also have to be for the home OWNER? Maybe you can take the deduction as a power generating entity. Maybe you need to lease it to her for $50/yr. Then you can also take the business loss?
I'm wondering if we will red flag by taking part of the cost of our system as a business deduction against my wife's home business. We have enough personal deductions but if we can use the system as a business cost then it really lowers her self employment tax.

[J.P.M.]

I already hired one tax professional, but he was only able to refer me to the same material that I am reading now, and he did not define residence the same as me, mentioning it as part of section 121 or something.

God made smart tax pros for a reason. I'd find an accountant that's more than a paper passer.

[Ulmo]

God made smart tax pros for a reason. I'd find an accountant that's more than a paper passer.

Yes, but to be fair, he only offered the references after telling me "no" and me prodding him for where he got that information from.

[foo1bar]

he did not define residence the same as me, mentioning it as part of section 121 or something.

How did he define residence?

How are you defining residence?
Is the house in question where you live? All your bills go there? you sleep there almost all the time? it's where you consider your home for voting, paying taxes, registering car, etc. etc?

IANAL - but my advice would be to find someone who knows this area of tax law.

I think this supports your view:

http://solaroutreach.org/wp-content/uploads/2015/03/ResidentialITC_Factsheet_Final-sept2015update.pdf

(But I'd still pay a tax preparer for their advice and to prepare my tax forms)