Using Form 3468 for commercial installation of solar panels @ $40K. The 30% credit is $12K - does my Form 4562 Depreciation of system have to be $28K? Help!

Forum|Forum|6 years ago
December 7, 2019
3 replies
12 views

Specifically need to know if Depreciable basis is calculated net of 30% Solar Credit.

ProSeries Professional

This topic has been closed for replies.

Best answer by TaxGuyBill

Yes, the credit reduces Basis, which would put the Basis at $28,000.

B

buelfarmAuthor

Level 5

Two other related questions: Read about ITC on Fed & NYS ... will asset be depreciated net of those credits also? Not taking Section 179, obviously... then, what Type of Asset & Asset Life? Read 5 years, but don't know?

sjrcpa

Level 15

OP follow up question here https://accountants-community.intuit.com/questions/1822861-commercial-solar-panels-depreciated-net-of-all-credits-i-am-taking-30-on-form-3468-and-then-another-4-on-nys-for-itc-what-is-asset-type-and-life-5-years

The more I know the more I don’t know.

T

TaxGuyBillAnswer

Level 15

Yes, the credit reduces Basis, which would put the Basis at $28,000.

B

Bry

Level 3

I don't believe this answer is correct.

https://www.irs.gov/pub/irs-pdf/i3468.pdf

"You must reduce the basis of energy property by 50% of the energy credit determined." So the basis would only be reduced by $6,000.

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