if I could effectively get the utility to show the FIT as a credit on the bill rather than sending me a check (I think this is an option I could elect), then I would need not call this income, as it's effectively a rebate for my electrical bill. Am I following you correctly
As stated the IRS has not ruled on FIT. they could rule that it's like NEM or not. The tax laws do not always make sense. For example, the NFL league office and management council were tax-exempt entities from 1942-2015 - voluntary revocation of tax-exempt status. Even the Tax Courts do not always agree on issues. You've established an accounting method for the utilities. You can not change that method without filing a 3115 - Change in accounting method. As to your method for accounting for utilities what about utilities common to the entire property?
Use your judgment and possibly confer with a tax pro in your state.
as to moving out, that question should be taken up with a tax pro when filing the tax return for the year of sale because tax laws are constantly changing.
