Tax credit

[bdickson]

The original question was specifically about a tax credit for solar panels. Let's not stray into a general discussion about tax laws and the IRS please!

[CampDaven]

Why not assume you can get the tax credit, do the paperwork and see if it flies?

Cant be much $ at risk.

[Gregory0495]

Ed thank you for ALL the information that you gave us. it helps out alot my dw and i are planing on going fulltime. i guess my next question to you would be if i buy my coach this year and i'm not fulltime but i go fulltime before 2016 am i still able to take the credit at that time?

[wnytaxman]

Originally Posted by Gregory0495

Ed thank you for ALL the information that you gave us. it helps out alot my dw and i are planing on going fulltime. i guess my next question to you would be if i buy my coach this year and i'm not fulltime but i go fulltime before 2016 am i still able to take the credit at that time?

Brett, my initial reaction would be no. The reason is that the RV was not your primary residence at the time the solar panels were purchased and installed which means that they were installed on your second home. If you install the solar panels after you go full time then I would say that it should qualify.

It was also asked why not just do it and see if it flies. The reason I would not "just do it" is that it can open up the entire return for audit and when a credit cannot be verified it raises the question that perhaps there is much more that cannot be verified. You may win, but at what cost? Life is too short to be spent trying to justify something you know shouldn't have done to a federal employee. Playing audit roulette can be a lot like real roulette. You may win, but the odds are against you.

Ed

[Gregory0495]

Thank you

[Whizzer60]

Originally Posted by wnytaxman

Remember that even though you may be correct in a deduction or credit, you may still have to defend that position in an audit.

No problem. That's the CPA's job.

[Whizzer60]

Originally Posted by bdickson

The original question was specifically about a tax credit for solar panels. Let's not stray into a general discussion about tax laws and the IRS please!

Why not??

[CampDaven]

The max credit is 30% up to 500 bucks. That is pretty much chump change. Why not go for it and let us know how it went.

I suggest that any other comments and topics are superfluous to the OPs original post.

[wnytaxman]

Originally Posted by CampDaven

The max credit is 30% up to 500 bucks. That is pretty much chump change. Why not go for it and let us know how it went.

I suggest that any other comments and topics are superfluous to the OPs original post.

Actually Dave the solar credit does not have a limit on it. So if someone is a fulltimer and they spent $10,000 on solar panels then they could take a $3,000 tax credit. The limits you are referring to are for insulation and energy efficient windows and the like. That credit has a $500 lifetime limit. The solar credit does not have the same limits. We had one of our clients get a $12,000 tax credit for his solar installation. Granted, he spent $40,000, but the credit does not have a cap on it.

[wnytaxman]

Originally Posted by Whizzer60

No problem. That's the CPA's job.

Whizzer, as a CPA we are required by law to not put anything on a return that we know is wrong. Secondly, yes it is our job to defend our clients, but I don't know about your CPA, but I don't work for free.

RV's and the tax implications of them are very complex. There are advantageous parts of the tax code that we can use. Brett's original question was regarding the tax credit for solar panels. He can take the credit when he's full timing and the RV is his primary home. There are other tax advantages we can take as RVers and those are what are allowed by law.

[mfrazier]

As noted, there may be a difference in wording between the actual law - Internal Revenue Code - and the forms in use. But the instructions for the 2012 Form 5695 say -"Qualified solar electric property costs are costs for property that uses solar energy to generate electricity for use in your home located in the United States. ... The home does not have to be your main home". If someone is using the tax forms and instructions, they would conclude there is not a requirement to be a full-timer using the RV as the primary home.

[wnytaxman]

Originally Posted by mfrazier

As noted, there may be a difference in wording between the actual law - Internal Revenue Code - and the forms in use. But the instructions for the 2012 Form 5695 say -"Qualified solar electric property costs are costs for property that uses solar energy to generate electricity for use in your home located in the United States. ... The home does not have to be your main home". If someone is using the tax forms and instructions, they would conclude there is not a requirement to be a full-timer using the RV as the primary home.

Mike, you are correct. I went deeper into the code and it does not restrict the solar credit to the taxpayer's main home. The energy efficiency credits are limited to the taxpayer's main residence, but the solar credit is NOT limited to the main home.

Brett, the original poster, I have to comeback to you and say go ahead and buy the rig now and take the credit because it will count and it will save you some dollars. Sorry about the goof, but as I said before the tax code is very complex and it is easy to misinterpret.

[Gregory0495]

Ed, Thank you for looking deeper into this information. i belive it will help out alot of people come tax time.

[spinn]

Wnytaxman, sorry to take advantage of your council, but if new batteries (like lithium) were part of the dollar implementation would they too be eligible for the tax credit?

Thanks Steve