I'm trying to figure out how to not carry over credit (because I'm I'm getting too much credit). I was wondering how I can not use my ($3000) capital loss carryover and to save my Home Energy Credit (for 2024 tax year).
I recently got a tesla which qualifies for $7500 credit. which is using up a lot of the credit and I can't carry over that if for personal use.
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There is a particular order in which credits must be used, and which ones are used first, and which ones can be carried over.
Capital Loss Carryovers must be used first, and you can't choose to 'skip' using it in any given year.
Here's more info on Capital Loss Carryovers and also on 5 Things to Know About Tax Credits.
What about home energy credit from solar panels (I have about $1100 left in credit). Can I not use it this year and use it the following year?
Because I have the energy saving car credit for $7500.
No. If you don't use your solar carryover this year, you can't use it next year. The clean vehicle credit is nonrefundable, so you can't get back more on the credit than you owe in taxes. And unfortunately, you can't apply any excess credit to future tax years.
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