The second option is not available to you. Even rented, it is still residential real estate.
You can't claim the residential solar credit for installing solar power at rental properties you own. But you can claim it if you also live in the house for part of the year and use it as a rental when you're away.
- You'll have to reduce the credit for a vacation home, rental or otherwise, to reflect the time you're not there.
- If you live there for three months a year, for instance, you can only claim 25% of the credit. If the system cost $10,000, the 26% credit would be $2,600, and you could claim 25% of that, or $650.
- $10,000 system cost x 0.26 (26% credit) = $2,600 credit amount
- $2,600 credit amount x 0.25 (25% of the year) = $650 credit amount
Solar vacation home
