How do I compute the adjusted basis of the solar electric system when I get a residential clean energy property credit of 30% of the cost? Thanks.
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Yes, the tax credit does not reduce your basis.
The adjusted basis of the solar electric system is the cost of the system less any rebates or discounts. If you received a rebate from your local utility then you need to reduce the cost of the system by that amount.
@pahnert
Is the federal tax credit considered a 'rebate' for the purposes of reducing the adjusted cost basis?
No.
@pahnert
So, I can still depreciate the full cost of the solar electric installation, even after getting the federal tax credit?
Yes, the tax credit does not reduce your basis.
What do you mean by " your basis" ?
Is claiming solar energy credit reduces your AGI , MAGI?
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