The solar panels are on my personal home, yes. I currently take the simplified method for the home office deduction.
An additional thought. Could I possibly take a percentage of electrical use and deduct that from the solar panels in the future?
Ex:
Purchase of solar panel system $30,000
Fed tax credit at 26% = $7,800
Net Cost $22,200 ( I will use this for the below example)
(Correct amount that I could use as a tax basis for the approach below? Given the previous article I mentioned, it seems more than the net cost??)
For the sake of ease, let's say these numbers are the same every year:
System puts out 10,000 kWh
EV has meter on the plug in and uses 5,000 kWh
EV is used for 80% biz and 20% personal
Use of the MACRS approach?
Year 1 - 2022
(.2 x $22,000) x 0 = $0 deduction (let's say I didn't get the EV until the last day of the year and panels were installed earlier, so no business used in year 1). -
Year 2
(.32 x $22,000) x .80 = $5632 deduction for 2023
Year 3
(.192 x $22,000) x .80 = $3379 deduction for 2024
Year 4/5/6 ect.
