nz
Level 1
05-05-2021
10:30 PM
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
For depreciation purposes, what type of asset is a solar energy system installed on a rental property?
Labels
dkh
Level 15
05-06-2021
08:56 AM
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
There's only two options Type of Asset - F rental furnishings or I - Rental Real Estate well maybe three because you could choose O - other
So if the neighbor came over and said "hey I really like your solar system can I buy it?" could it be removed and sold without tearing into the property? If no - then it is part of the real estate. Doesn't a solar system require lots of "plumbing" installation.
Level 15
05-06-2021
12:48 PM
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Qualifying solar energy equipment is eligible for a cost recovery period of five years. See link:
https://www.seia.org/initiatives/depreciation-solar-energy-property-macrs
nz
Level 1
05-06-2021
08:54 PM
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
They are solar panels so no plumbing installation.
dkh
Level 15
05-06-2021
09:37 PM
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
What I meant by "plumbing" is the connection from solar panels to what is being powered by them.