In 2022 we installed a $25K solar power-generating system on our home. We also run an in-home daycare that typically averages between 52% & 54% for business use of home (Form 8829) percentages.
Since we run a business from our home I know that the solar credits and depreciation can get crazy. I believe that we should be able to take the personal solar credit (Form 5695), the business investment solar credit (Form 3468), and depreciation on the system based on the business use percentage.
I am trying to figure out the credits and depreciation basis for this year. I know that for depreciation we have the option of taking the bonus depreciation on the business portion of the solar.
If our business use percentage is 50% this year, would I take 1/2 the install cost as the basis of the personal solar credit (Form 5695), 50% as the basis of the business investment solar credit (Form 3468), and then the remaining amount after the business credit as the basis for depreciation? Does any of the basis go on Form 8829?
Thanks in advance for the help!
