I can't believe I'm asking this question, but I just have to do it. We installed solar panels on our main residence, but then we sold it in 2018. We moved to a new house in a different state in that same year. We had been taking credits in the past using Form 5695, and I just saw that we have a solar energy credit that carried over into our 2019 tax forms in TurboTax. I was about to delete the form, but then I thought I would check the instructions to see if there was any reason it could carryover to future years with the original owner, even they do not still own the residence. (I tend to take things very literally, and the instructions do not address this.) Can we take a credit in the year after the house sale, or did we lose the balance of the credit that was carried over?
Thank you for your help in understanding this better
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Yes, the sale of the home after the installation of the qualified solar electric system does not disqualify you for the residential energy credit.
Take the steps below to enter your qualified solar costs:
Yes, the sale of the home after the installation of the qualified solar electric system does not disqualify you for the residential energy credit.
Take the steps below to enter your qualified solar costs:
KurtL1,
Thank you for answering my question and for the directions on the steps to take. I am very grateful.
John
You are welcome.
I am confused, since in the sale of the home the credit is recaptured...how can the credit carry forward after the sale of a home? Can anyone weigh in?
I am confused, since in the sale of the home the credit is recaptured...how can the credit carry forward after the sale of a home?
The REC reduces the basis which increases the gain (or reduces loss - not deductible) on sale. the fact that you couldn't use all of it in the year it arises is a different issue.
or are you thinking of the first time home buyer credit which had to be repaid with any unpaid balance due in the year of sale
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