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Using Form 3468 for commercial installation of solar panels @ $40K. The 30% credit is $12K - does my Form 4562 Depreciation of system have to be $28K? Help!

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Level 1
last updated ‎December 07, 2019 3:18 AM

Specifically need to know if Depreciable basis is calculated net of 30% Solar Credit. 

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Level 12
last updated ‎December 07, 2019 3:18 AM

Yes, the credit reduces Basis, which would put the Basis at $28,000.

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Level 1
last updated ‎December 07, 2019 3:18 AM
Two other related questions:  Read about ITC on Fed & NYS ... will asset be depreciated net of those credits also?  Not taking Section 179, obviously... then, what Type of Asset & Asset Life?  Read 5 years, but don't know?
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Level 14
last updated ‎December 07, 2019 3:18 AM
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Level 12
last updated ‎December 07, 2019 3:18 AM

Yes, the credit reduces Basis, which would put the Basis at $28,000.

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Level 1
last updated ‎December 07, 2019 3:18 AM

I don't believe this answer is correct. 

https://www.irs.gov/pub/irs-pdf/i3468.pdf

"You must reduce the basis of energy property by 50% of the energy credit determined." So the basis would only be reduced by $6,000.

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