Is the solar we put on our house this year tax deductible?

November 26, 2014 by Dave Du Val, EA
houses

Hey Dave,

We had solar put on our house this year.  Is it tax deductible?

Lee

 

Lee,

A tax credit is available for qualified solar electric property costs and qualified solar water heating property costs. The Residential Energy Efficient Property Credit gives back up to 30% of your costs. It is a non-refundable credit, meaning that it cannot exceed your tax liability, but any unused credit generally carries forward. The credit is claimed on Form 5695 Residential Energy Credits, and more information on the credit can be found here.

Properly answering the questions in TurboTax will complete this form for you and enable you to claim the credit.

We hope the energy improvements work out for you.

Deductibly Yours,

Dave

 

Want peace of mind?

Learn About Prepaid Audit Defense

CATEGORIES
View All Articles
TaxAudit Blog Home
Submit a Question
 
Dave Du Val, EA

Dave Du Val, EA
Chief Compliance Officer for TRI Holdco

 
Dave Du Val, EA, is Chief Compliance Officer for TRI Holdco. Inc., the parent company of TaxAudit, and Centenal Tax Group. A nationally recognized speaker and educator, Dave is well known for his high energy and dynamic presentation style. He is a frequent and popular guest speaker for the California Society of Tax Consultants, the California Society of Enrolled Agents and the National Association of Tax Professionals. Dave frequently contributes tax tips and information to news publications, including US News and World Report, USA Today, and CPA Practice Advisor. Dave is an Enrolled Agent who has prepared thousands of returns during his career and has trained and mentored hundreds of tax professionals. He is a member of the National Association of Tax Professionals, the National Association of Enrolled Agents and the California Society of Enrolled Agents. Dave also holds a Master of Arts in Education and has been educating people since 1972. 
 

Recent Articles

Married but separated? IRS tax filing status options explained, including joint, separate, and Head of Household, plus key credits and deductions.
Learn More ›
Find out which job-related expenses law enforcement officers can deduct, who qualifies for exceptions, and what documentation is required.
Learn More ›
Understand when you can take a 401(k) distribution without the 10% early withdrawal penalty, including IRS exceptions, new rules, and tax considerations.
Learn More ›
Learn why tax returns are rejected for e‑filing, what IRS rejection code REJ001 means, and how to fix timing, SSN, and software errors fast.
Learn More ›
This blog does not provide legal, financial, accounting, or tax advice. The content on this blog is “as is” and carries no warranties. TaxAudit does not warrant or guarantee the accuracy, reliability, and completeness of the content of this blog. Content may become out of date as tax laws change. TaxAudit may, but has no obligation to monitor or respond to comments.