3628717
I bought a residential property last year and rented it out. This was a new construction and I had to pay for the solar system as it was required by the City. Can I claim the cost I paid in my returns?
Thanks.
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The cost of the solar system may be reported as an improvement asset under your Rental Property.
For instructions on entering this asset, see How do I handle capital improvements and depreciation for my rental?
[edited 4/14/25 | 1:28 PDT]
The section 25D credit on form 5695 that applies to homeowners is not allowed for business property. Specifically, if the home is used less than 80% for personal use, you can only claim the percentage of the credit that applies to personal use (which would be zero for a full time rental).
I believe there is a separate credit under section 48 that is allowed for business property, but I don't know anything about how to claim that credit.
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