Hello all,
I had solar panels installed on my residence during the year. I have been in touch with an accounting firm that in addition to the federal tax credit, I also can claim depreciation on the system even though they are not being used for business. What they are pointing at is in IRS publication 946 ("How To Depreciate Property"), the publication allows for depreciation of "income-producing property". They say that since my panels produce excess energy and that the income paid to me by the utility provider should be clearly classified as income under the IRS guidance, logically the panels then qualify as "income-producing" even though they are not connected to a business.
I have read in other places that residential panels would not be qualified for depreciation and am curious to hear whether there are any opinions on the matter from the community.
Thank you
