Tax credit Question

[diogenes]

If I am forced to put up a fence due to covenant restrictions, in order to have solar panels (sole reason for fence). can I take the 30% tax credit on the fence cost too?

[azdave]

First, tax advise from a free public forum is worth what you paid for it.

Second, I've seen some states that allow for fencing around solar installs to be included as part of the state tax credit but I have no idea about federal rules.

Consult a professional.

[paul65k]

I'll tell you what my accountant always tells me when I ask a question like that............................"It depends"..............best bet is to get the advice of the person who will be doing your tax return and who also has to sign their name to the return........Solar installation companies do NOT have any skin in the game when the IRS wants to "Have a little Chat"............Just sayin'

[solar_newbie]

I'll tell you what my accountant always tells me when I ask a question like that............................"It depends"..............best bet is to get the advice of the person who will be doing your tax return and who also has to sign their name to the return........Solar installation companies do NOT have any skin in the game when the IRS wants to "Have a little Chat"............Just sayin'

No tax return sign their name on responsible for their filling Plus there is no form from IRS to do it unless they attach the letter to state they will be responsible for anything in this tax document ...

I got the same question for the roof. I am not sure how audit can be done to say I need to replace the whole house roof for install solar panels on 30% of the house.

[paul65k]

No tax return sign their name on responsible for their filling Plus there is no form from IRS to do it unless they attach the letter to state they will be responsible for anything in this tax document ...

I got the same question for the roof. I am not sure how audit can be done to say I need to replace the whole house roof for install solar panels on 30% of the house.

You might want to ask your CPA/EA about their responsibility on tax returns. If a licensed preparer is involved and knowingly commits fraud they can be liable for fines/sanctions by the IRS.......certainly much more than a Solar contractor....now wouldn't you say????

And just to be clear a CPA DOES sign their name to a return if they are preparing it for others.......might want to check on that one too......they ARE held to a higher standard as they are considered to have knowledge above and beyond the average taxpayer!

[skipro3]

What is the worst that would happen?
You file and claim the credit, then later the credit is disallowed and you pay the refund back. Plus interest probably, but I doubt any penalty, since it's not deliberate deceit and fraud.

I've had an audit of that nature, not with solar, but where I claimed something that later was audited and found that I was not entitled. They did it all by mail, I didn't challenge, just sent them the check. End of story.

[paul65k]

What is the worst that would happen?
You file and claim the credit, then later the credit is disallowed and you pay the refund back. Plus interest probably, but I doubt any penalty, since it's not deliberate deceit and fraud.

I've had an audit of that nature, not with solar, but where I claimed something that later was audited and found that I was not entitled. They did it all by mail, I didn't challenge, just sent them the check. End of story.

There will be a penalty.....probably only 10% (Plus interest). No reason not to do it if it is truly a requirement for the installation.....which is why you should ask a professional.

Asking alone does not mean you shouldn't take the deduction........the message here is that you should be getting your TAX advice from a tax professional not a solar professional..........Just sayin'

[diogenes]

Thanks guys, have used Turbotax in the past,may need a tax pro this year.

[inetdog]

Thanks guys, have used Turbotax in the past,may need a tax pro this year.

Their "audit insurance" will probably not cover mistakenly claiming ineligible credits.