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posted Jun 1, 2019 11:47:16 AM

Depreciation on solar when solar tax credit initially taken on home on multi unit property, which is now becoming a rental?

I received a solar tax credit by installing in on one of two houses on our property in 2014.  I started renting out that house on 7/1/28 with the solar unit on it, and it continues to provide power to the whole property.  Can I now claim remaining depreciation on the solar installation, minus the credit received?

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Level 9
Jun 1, 2019 11:47:16 AM

Yes, you depreciate the lower of (1) the Adjusted Basis (in your case, purchase price minus the credit you received) or (2) the Fair Market Value at the date of conversion to rental property.