pm-zz
Level 3

As a little background, Client files 2020 tax return and claims 26% Solar Energy Tax credit on 60,000 of qualified solar property installed on Main residence.   Per the IRS - the SREC payments/incentives are considered reportable income.   I'd say report as "Other Income".

As a result of the solar installation - client receives solicitation from let's call them "Green" TaxExperts" and they claim that client should file Form 3468, 4562, and Schedule C to claim Depreciation, Interest, Utilities, etc. because his solar equipment is generating income and therefore he is entitled to the corresponding tax deductions.  The client is retired and is NOT Self Employed.  In order to file Schedule C, an individual has to be "engaged an activity for profit" - this alone precludes the filing of Schedule C when the only motive of the "green tax experts" is to generate huge deductions.   The whole scheme seems not just aggressive but step on the gas aggressive.  Anyone had this come up or thoughts? 

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