topic Solar Federal Tax Credit for Shared Home. in Deductions & credits

Solar Federal Tax Credit for Shared Home.

Tax Newbie — Tue, 06 Apr 2021 00:32:27 GMT

My family and my parents live in the same home. The home belongs to my parents, it is in their names. If my parents and I go in 50/50 on a solar system, can both of us each get a 50% solar tax credit? For example, if the system costs $30,000, the total tax credit would be $7,800, so each of us would get $3,900? Is that how it would work? TIA!

Re: Solar Federal Tax Credit for Shared Home.

DaveF1006 — Tue, 06 Apr 2021 00:56:57 GMT

Yes. Since you both live in the home, you can claim 1/2 of the credit for the cost of the solar system. Reading the instructions for form 5695, there are no restrictions governing how many people can take the credit. If you share the house, share the cost, you are not restricted from sharing the benefit.

Be sure to read those instructions for more information.