Deductions & credits


@benjamindearden wrote:

He does live in the home so he is going to claim it. I was just wondering based on how turbotax said the credit applies to tenants and owners. Thanks for your reply though!


It's a little confusing because the section 25C credits for insulation, door and windows and so on, can only be used if the taxpayer owns the home and uses it as their main residence.  The section 25D credits, which includes the solar cost, only requires that the taxpayer who claims the credit live in the home as "a" residence -- it doesn't have to be their "main" residence and they don't have to own it.

 

However, the taxpayer who wants to claim the credit still has to have paid for the solar in the first place.  So you have to pay for it and live there, but it doesn't have to be your main residence and you don't have to be the owner.