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?

[stillmorningrise]

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.

[KittyM · Accepted solution]

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).