Solved: I own a rental property that has leased solar panels on the property. Am I allowed to deduct the monthly lease payment for the panels as an expense?
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I own a rental property that has leased solar panels on the property. Am I allowed to deduct the monthly lease payment for the panels as an expense?

I know you cannot claim the credit since the solar lease company does. However I wasn't sure if the lease payment qualifies as a rental utility expense, which would be deductible.

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I own a rental property that has leased solar panels on the property. Am I allowed to deduct the monthly lease payment for the panels as an expense?

Yes, you are allowed to deduct reasonable and necessary expenses for your rental. If you didn't have solar panels you would have to pay utility bills, so they are a utility expense.

On the flip side, if you get paid for excess electricity generation, you will need to declare the income (or reduce your utility expense).

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Level 2

I own a rental property that has leased solar panels on the property. Am I allowed to deduct the monthly lease payment for the panels as an expense?

Yes, you are allowed to deduct reasonable and necessary expenses for your rental. If you didn't have solar panels you would have to pay utility bills, so they are a utility expense.

On the flip side, if you get paid for excess electricity generation, you will need to declare the income (or reduce your utility expense).

View solution in original post

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