Had new roof put on prior to solar install. Had roofer track the work specific to solar install, i.e. thicker sheathing. Deprec with solar panels over 5 years?

[Opus 17]

Why are you depreciating the solar, is this rental property?  Was the roof work required for the structural addition of the solar panels or did you need a new roof anyway?

[Carl]

If this was for your personal residence or 2nd home, you have absolutely nothing to report really. However, you "may" qualify for an energy credit *IF* this was on your primary residence.
If this was for rental property then you don't qualify for any energy credits, but the cost is capitalized and depreciated over 27.5 years.

[owlberemembering]

We  began renting out rooms in this, our primary residence, in the fall of 2018.  My take is I can depreciate the proper % of my total solar install costs  based on % square footage of rental use, along with the same % of the basis of the structure.  We are half way through the 5 year useful life defined for solar.  

[TaxGuyBill · Accepted solution]

Yes, the work specifically for the solar (such as stronger structural support) is added to the Cost Basis.

The credit that you received reduces the Basis.

The Basis for depreciation is the lower of (1) your Adjusted Basis (see prior two sentences) or (2) the Fair Market Value when it was started to be used for business/rental.  Then the business/rental percentage is applied to that number.

The 5 year recovery period for depreciation starts when it was "placed in service" for rental.  So the 5 years starts in the fall of 2018 for you.