Hi,
So in my case, i don't own the home but it's my full time residence (that is in a Trust to me - so i'll own it someday) and i am the taxpayer. Your statement says nothing about the property owner. Btw the house is paid for so i am the 'taxpayer' of the property taxes.
This is directly from the IRS website: https://www.irs.gov/credits-deductions/residential-clean-energy-credit#claim
"Who Qualifies:
You may claim the residential clean energy credit for improvements to your main home, whether you own or rent it. Your main home is generally where you live most of the time. The credit applies to new or existing homes located in the United States....."
This explanation is directly related to Form 5695 listed on this link/page.
Seems pretty clear here, however i would like your or anyone else's thoughts.
Here's the bigger question. How does this come into play if you are say, the renter, paying for the solar and taking the credit:
"You must reduce the cost basis of your home if a residential
energy credit is allowed for any expense for any property. The
increase in the basis of the property that would result from the
expenses will be reduced by the amount of the allowed credit."
I assume this has to do with improvements so how does the property renter who's taking the credit account for the cost basis when they don't own the property, and will never be impacted by the eventual sale of the property in terms of any taxes owed?
