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Can I claim the monthly amount I pay for solar panels as a Utility expense for my tenants on a house I rent out?

 
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3 Replies
Carl
Level 15

Can I claim the monthly amount I pay for solar panels as a Utility expense for my tenants on a house I rent out?

Do you own the solar panels? If yes, then whatever you paid for them would be a capitalized asset, as they add to the cost basis of the property.

 

Can I claim the monthly amount I pay for solar panels as a Utility expense for my tenants on a house I rent out?

if you own them then the monthly payment would apparently be on the loan to finance them. only the interest portion of the payment would be deductible. 

Can I claim the monthly amount I pay for solar panels as a Utility expense for my tenants on a house I rent out?

Correct ... the interest is a deductible cost.  The hard costs of the solar system (less any credits taken) are assets that must be depreciated. 

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