@1selkie wrote:
Why the heck is the IRS not required to be clear about what they want?
In this case blame Congress for using the word "placed in service" in one part of the tax code and "completed" in a different part of the code.
An AI summary from duckduckgo says this:
"Completed" refers to the point when a project or asset is fully finished, while "placed in service" is the date when an asset is first used for its intended purpose and begins to depreciate for tax purposes."
The internet is all over the place on this issue. One solar company claim that the IRS changed the rule from "placed in service" to "completed" and references this notice, but the notice says no such thing.
https://www.irs.gov/newsroom/faqs-for-modification-of-sections-25c-25d-25e-30c-30d-45l-45w-and-179d-...
A law firm web page says the system must be "completed and placed in service" by Dec 31, which is not actually what the law says, unless "completed" and "placed in service" mean the same thing, for which they give no proof.
I think it is pretty clear that a solar system can't be placed in service for business depreciation purposes until it actually turned on, which usually requires inspection. However, the personal solar credit only says "completed". I have always before taken the position that the solar credit could not be claimed until the system was placed in service, but a couple of months ago, another customer asked about the difference between placed in service and completed, and I have to admit that I don't know the difference other than the AI summary above, and I can't find any IRS guidance. And of course, this is especially important now with the credit ending.
You always have the final responsibility for your own tax return. Very few people are audited, and this is a grey area. For a credit that might be as much as $5000-$10,000, you could afford a professional consultation if you wanted to. I can't give legal advice and I can't even find a decent source that discusses the issue. What you do is ultimately up to you.
