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189
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Brian Davis
  • Flipper / Wholesaler
  • Farmington, CT
89
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189
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Solar on 1 to 4 Unit Rental Properties

Brian Davis
  • Flipper / Wholesaler
  • Farmington, CT
Posted

I have recently been seriously considering adding solar to all of our rental properties. I was planning on either setting up a company to lease the panels back to my properties or to simply have the LLC finance the panels through a loan using a UCC-1 filing.

There is currently a 26% tax credit in year 1 along with the ability to use bonus depreciation on the system of 87% (with a 5 year life). Either the company leasing the panels to my rentals or my rentals could take these tax benefits. 

I am posting here to see if anyone has done this or has any knowledge of this.  If so, please share.

Most Popular Reply

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628
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Tanya F.
  • Rental Property Investor
  • Madison, WI
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628
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Tanya F.
  • Rental Property Investor
  • Madison, WI
Replied
Quote from @Brian Davis:

Yes, But they say the credit may be taken under section 48. Its a difference of where the tax credit is taken from what I can understand.  See this link with accountants discussing it on intuit:  https://ttlc.intuit.com/commun...


Also, see https://www.thetaxadviser.com/...
and https://news.energysage.com/so...

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