I do the taxes for my daughter. She has invested in solar panels. She is eligible for the Residential Energy tax credit but her solar company is advising that she claim the Investment tax credit instead. This so she can claim depreciation by using part of her home as a business. The "for profit" part would be the energy she "sells" to the utility.
Is this the way you would advise and is she liable for tax on what she "sells? How does the IRS know?
