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wildwpe
New Member

I installed solar panels 2016 tax credit.The installer did not pay the sub contractor and a lien placed on my home.This debt was pay. Is this expense as an energy credit?

I paid the lien in full to the sub contractor this year.  May I take this additional expense towards an energy credit in 2018?
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2 Replies
Carl
Level 15

I installed solar panels 2016 tax credit.The installer did not pay the sub contractor and a lien placed on my home.This debt was pay. Is this expense as an energy credit?

No. You will basically claim it as an unpaid debt that will be itemized on SCH A. Just keep in mind that until all of your itemized deductions exceed your standard deduction, it will have no impact on your tax liability what-so-ever.

To report/claim the unpaid debt of someone else, for which you were legally obligated to pay, under the deductions and credits tab scroll down to Other Deductions & Credits and elect to start/update Other Deductible Expenses. Pay attention to detail because it matters if the amount was more than or less than $3,000.

 

I installed solar panels 2016 tax credit.The installer did not pay the sub contractor and a lien placed on my home.This debt was pay. Is this expense as an energy credit?

First you need to sue the contractor to recoup the loss ... if that doesn't work then a Sch A deduction is your only other option.

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