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Level 1
posted Jun 4, 2019 1:56:54 PM

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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Level 2
Jun 4, 2019 1:56:56 PM

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).

1 Replies
Level 2
Jun 4, 2019 1:56:56 PM

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).