[Jared]

We are looking at solar, and the Fed gives 30% towards it in the form of tax deduction.

The problem is that I’m a pastor that has a housing allowance (which has unique tax consequences) and 5 kids, so many years I pay little to no “income” tax, but lots of “self-employment” tax.

The solar thing comes off of income tax. I can’t figure out a way to get the deduction.

Are there any tax-tricks or ways for me to get the tax deduction?

[Christopher]

a Roth conversion might qualify, otherwise you could sell something in a taxable account that has a gain, and then rebuy it. This is called “gains harvesting.”

Double check that the tax credit would offset those kinds of gains though.

[Bill]

Does it just have to be ordinary income? Would a Roth conversion count?

[Patrick]

We ran into the same issue, we’d really like to do solar, but with child tax credits and others, we couldn’t access those subsidies.

We were looking at a 29 year payback, on 25 year warrantied panels, so we opted out.

[Mary]

We did it. I can’t remember exactly how the credit worked, but I was happy with the decision to go for it.

[Kevin]

My understanding is it’s a nonrefundable tax credit not a tax deduction. S

o, you only receive value up to the taxes you owe, but you can carry it forward as well.

[Author]

Posts