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Hemi9
New Member

Credit for Solar pass-through from LLC

On my partnership K1, I have a credit in box 15 for installing solar panels.   The location of the solar panels is on the business property.  The property is owned by an LLC so the credit passes through to me individually.   Turbo tax (Home and Business) auto populates form 5695 Residential Energy Credit but that is for installation at a residence.    Form 3800 General Business Credit seems more appropriate.   How can I get Form 3800 to populate instead of Form 5695?

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3 Replies

Credit for Solar pass-through from LLC

i am only aware of residential energy credits, including solar, that is available if the taxpayer owns the property and uses it as their principal residence.

IRC 25D

https://www.law.cornell.edu/uscode/text/26/25D 

 

If I'm correct that makes the k-1 and the partnership return wrong.

 

EDS59
New Member

Credit for Solar pass-through from LLC

I think you are wrong and the credit for energy improvements at a residence owned by a partnership should flow through to the partners.  But the law is not clear, and explanations are less clear.  Who has the answer?

AmyC
Expert Alumni

Credit for Solar pass-through from LLC

Energystar is a government agency with details for every year and credit. The government states under solar:

Who can use this credit? 

Existing homes and new construction qualify. Both principal residences and second homes qualify. Rentals do not qualify. This system must be installed in connection with a dwelling unit located in the United States and used as a residence by the taxpayer. 

The home served by this system does not have to be the taxpayer's principal residence. 

@EDS59 

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