Tree topping - trimming + Solar Install + Fed Tax Credit Discussion

[Nifty-Chicken]

Quote:
Great question! Answer depends on who you ask.

In CA there is a tax rebate (just dropped from $1.10 per watt to $0.65 per watt) and then the Federal Tax Credit for 30% which is the big one and to what I believe you are referring.

We actually need to take down the tree and get a new roof put on under the panels (current roof is a cement product that would crumble if walked on).

Some say that the 30% credit only covers the panels and the direct installation. Others say it covers "everything" needed to get the solar installed.

Are there any CPA's in the house?

Also note: It is a tax CREDIT and note a tax DEDUCTION... (credits are WAY better): http://www.kiplinger.com/columns/ask/archive/2007/q0319.htm

 

[twentynine]

Got a few years of experience. No way would I spend the money to have the tree trimmed. Have the tree taken out.

 

[KDbeads]

I was able to deduct my new roof this last year since it was more energy efficient that the last one that was literally blowing off with every gust of wind. Materials only is the tax code thing but it was a nice $1500 toward the deductions.

 

[Spookwriter]

I am corrected...it would be a tax credit I'm asking about verses the tax deduction.

We more or less agree the tree needs removed.

Now we need a CPA opinion. Let's say that the homeowner having the tree removed
by another company is not allowed for the IRS. Now, if the original company installing
the solar panels actually contracted the tree-cutter and paid them, then adding that
expense to the homeowners total bill....would the complete bill then be allowed by the
IRS?

Myself, I would rather enjoy a thread on what is, and is not, allowable by the IRS. Are
barn repairs and upgrades allowable on a "real" farm? (I'm not a farmer.) Are new coops
allowed if you claim an income from the chickens? Would that then allow us to claim feed?
Write our hobby off as an loss?

Surely there must be one CPA among us offering free advice?

 

[Nifty-Chicken]

Quote:
You sound like you've done this before!

That is the exact discussion I had with a few of the solar peeps I interviewed. Most were willing to subcontract and add it to the solar install. Pretty significant when you consider 30% off a roof install (at least the area where I was putting the new roof for the solar).

I'm not a CPA, but I wonder if at the end of the day if there is a 100% "correct" answer. From what I understand there is just a line on the Fed. tax form for the credit amounts and you enter how much $$ was spent in compliance. I guess it is like any other tax form item where there are lots of degrees of what is "right" but at the end of the day it depends on if you get audited and what the auditor says.

Now, where are those CPA's?

 

[Spookwriter]

KDbeads ... question.

A roof replacement on your personal home as a tax credit because of
being more efficent?

If you don't mind my asking, what did you have, and what did you put on?

I've got a wind damaged shingle roof on my parents home to deal with
this spring. Has dementional (sp?) shingles now. Dad would like a new
metal roof. I have no ideal how to install one.

Need to replace the roof on the rental house and garage. That one I
know I can claim.

 

[Nifty-Chicken]

If I may, I did look into this a bit too.

There are a few things going on (as listed here: http://www.energy.gov/taxbreaks.htm )

1) HOME ENERGY EFFICIENCY IMPROVEMENT TAX CREDITS: This is a max of $1,500 and is stuff like caulking, new windows, and select high efficiency (usually white / light / reflective) roofing materials.

2) RESIDENTIAL RENEWABLE ENERGY TAX CREDITS: No max, for stuff like heat pumps, solar, etc.

Some more good info:
http://www.energystar.gov/index.cfm?c=tax_credits.tx_index#7

 

[KDbeads]

Quote:
What was on here was fiberglass roofing from the 70's, we replaced with 30 year asphalt/tar shingle. We wanted metal but it was 10 grand installed. My mom is the tax accountant... she found the credit for me when we first bought the place and started saving to fix the roof

Though it does come up on Turbo-Tax when you itemize. Same with a bunch of other upgrading credits. I always ask her before we do anything so I know what I can deduct, what will be a credit, etc when we sit down to do our taxes.

 

[saddina]

Like Turbo Tax, Tax Cut also has this all dumped together onto 1 line when itemizing. Personally I would claim it all as part of the install (after all installing without removial is pointless), just keep it all tidy so if you do get audited you can back up what you put down and why.

 

[Nifty-Chicken]

I was outside looking at the tree and thinking about it completely gone makes me sad

. I wish there was a way to cut it down to the point the it could just be a tiny version of itself... but I guess you all are saying no matter what it will spring back up? What if it was chopped like at the lowest point of the beginning of the red line, straight across horizontally? I mean, how fast do these things grow anyway when "topped"?