Solved: Failed Solar Panes and their Removal Deductible? - Community
cancel
Showing results for 
Search instead for 
Did you mean: 
Highlighted
Level 2

Failed Solar Panes and their Removal Deductible?

I'll bet no one has had this type of question yet!   It's a new type of tax challenge, maybe!

I had 32 solar panels made by BP, which were installed in 2006. 
3 years ago or so they started failing.  The were collapsing, junction boxes shorting out, and my roof began leaking. 
I had them reconfigured to remove the failing panels ($1560) in 2018.  Then, it started looking like I had to remove the rest because they became a fire hazard, and the racks were rusting through the roof attachments, which also meant a new roof in 2019.  (About $20K)

In the meanwhile, I discovered their manufacturer, BP, had a class action suit against them for these very reasons.  BP is long out of the solar business and can't replace nor repair them.  I applied for the suit, but was ultimately rejected in 2020 simply because my serial numbers were a year off from the manufacture dates of the suit. 

So.. This $56K investment in 2006 just cost me another $20K in 2019. 

I've definitely taken the residential energy credit over the years.  2019 will be the last year I have anything left.  $483, I think. 
Is this, or how could any of these costs be deductible? 

Thank everyone for their time.

1 Best answer

Accepted Solutions
Highlighted
Expert Alumni

Failed Solar Panes and their Removal Deductible?

The roof would be considered an improvement as opposed to a repair. As such, you would have to enter the replacement as an asset and depreciate the portion allocated to the home office. As such, it would not amount to a very significant deduction from year to year.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

7 Replies
Highlighted
Level 15

Failed Solar Panes and their Removal Deductible?

personal or rental.  yes dedutible on rental property.  no on personal home. its like replaceing your roof because it leaks  - you get no deduction.    however the cost of the solar panels adds to the basis of home 

Highlighted
Level 15

Failed Solar Panes and their Removal Deductible?

 
Highlighted
Level 2

Failed Solar Panes and their Removal Deductible?

Personal. 
Good to know!  
That was a painful $20K. 

Thanks for taking the time! 

 

Highlighted
Level 2

Failed Solar Panes and their Removal Deductible?

Makes sense. 
I figured that part of my home has been used for the farm office (about 100sf) so perhaps part of the expense of having them removed  and maybe part of the loss would be deductible.  
Maintenance, at least! 

Then there's my water system....

Thanks for the response.

Highlighted
Expert Alumni

Failed Solar Panes and their Removal Deductible?

The roof would be considered an improvement as opposed to a repair. As such, you would have to enter the replacement as an asset and depreciate the portion allocated to the home office. As such, it would not amount to a very significant deduction from year to year.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

Highlighted
Level 1

Failed Solar Panes and their Removal Deductible?

Your roof was at least 13 years old since you had the panels put on in 2006 and probably older than that correct? It sounds like your roof was at least due, if not overdue, to be replaced anyway, regardless of the solar panels. I don't think you can claim the solar panels costed you $20k in this scenario.

Highlighted
Level 2

Failed Solar Panes and their Removal Deductible?

No, the roof was new in 2006, and the panels installed 28 days later. 
They also cost me $56K, and the water system $7K. 

 

Thank you.

Privacy Settings