You'll need to sign in or create an account to connect with an expert.
In general, consumer loan interest (personal loan) is not tax deductible.
Did you get a home equity loan to pay for the solar panels? If so, yes. The interest is deductible.
Per Tax Topics - Topic 505 Interest Expense - IRS.gov
Types of interest deductible as itemized deductions on Form 1040, Schedule A (PDF), Itemized Deductions, include:
Types of interest not deductible include personal interest, such as:
My question is in regard to purchasing solar panels on a farm owned by my electric service. My home electric bill will be reduced by credits generated by the solar panels. The contract can be transferred to a subsequent buyer. The interest would be charged from a home equity loan. The purchase would be with funds from the home equity loan.
Beginning in 2018, interest on a home equity loan or line of credit is only deductible if the loan was used to "buy, build or substantially improve" the home that secures the loan. You cannot deduct interest on a loan used for other purposes, such as the installation of solar panels.
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
Think57
Level 3
smlucio
Level 1
dlarzik
Level 1
Tax_Lego
Returning Member
hbondra
Returning Member
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.