Depreciation, Commercial Solar Panel Energy credit

0 views
Skip to first unread message

Merlie Lomboy

unread,
Apr 22, 2020, 3:24:41 PM4/22/20
to ClientWhysConnect
Hi everyone: I have 2 questions that I need help with. I did my research but I need clarifications and if I am doing it correctly.

New client, a Schedule C operates a residential care home for the elderly.  Started the business in 2013.
  1. Previous preparer used 31.5 asset life for the care home, is that correct?  I was thinking 39 yr life . If I am correct, can I change it or just follow what has been started?
  1. Installed Commercial solar panel system in the care home worth over $44,000 in 2019, and solar company told her to claim investment credit on Form 3468. I am not familiar with this form. I reviewed the form and I can see line 12b Part III might apply. Then I will depreciate the remaining cost after the credit. Please let me know if I am correct.
Thank you very much.



 
Merlie D. Lomboy, EA
 
 
This message is confidential. If the reader of this message is not the
intended recipient or an agent responsible for delivering it to the
intended recipient, you are hereby notified that you have received this
document in error, and that any review, disclosure, dissemination,
distribution, or copying of this message of the taking of any action in
reliance on its contents, is strictly prohibited. If you have received
this communication in error, please notify us immediately and destroy
the documents. Thank you.

Lee Reams

unread,
Apr 22, 2020, 4:23:50 PM4/22/20
to 'Jacqulyn Deniston EA Professional Tax Service' via ClientWhysConnect
-- 
You are subscribed to the ClientWhysConnect group.
Post Address: clientwh...@googlegroups.com
Unsubscribe Address: clientwhysconn...@googlegroups.com
For more options, visit this group at
http://groups.google.com/group/clientwhysconnect?hl=en?hl=en
 
Disclaimer --- You use the information shared on ClientWhysConnect.com at your own risk. The information is based upon unsubstantiated member opinions and if you have concerns about the validity of the information you should research the issue thoroughly yourself and arrive at your own conclusions. We will never share any of the information you’ve provided to the ClientWhysConnect.com list with anyone.
--- 
You received this message because you are subscribed to the Google Groups "ClientWhysConnect" group.
To unsubscribe from this group and stop receiving emails from it, send an email to clientwhysconn...@googlegroups.com.
To view this discussion on the web visit https://groups.google.com/d/msgid/clientwhysconnect/CY4PR16MB1832553E269740C4C0729190C0D20%40CY4PR16MB1832.namprd16.prod.outlook.com.


 
Lee Reams Sr., BSME, EA
Chief Content Officer
CountingWorks Pro | CountingWorks | TaxBuzz | TaxCPE
p:1.800.442.2477 x240
w:www.countingworkspro.com/  e: lee....@countingworks.com
      
 
See how CountingWorks can grow your practice.

 






Lee Reams

unread,
Apr 22, 2020, 4:35:57 PM4/22/20
to 'Jacqulyn Deniston EA Professional Tax Service' via ClientWhysConnect
Non-residential real estate property is 39 year life (31.5 was before 5/12/93) so the preparer is way behind the times. I think you have to change it 39 year life. 
Yes, the solar qualifies for business energy credit (investment credit) See chapter 9.11 in the BB. 


On Apr 22, 2020, at 12:23 PM, Merlie Lomboy <rmlo...@msn.com> wrote:

-- 
You are subscribed to the ClientWhysConnect group.
Post Address: clientwh...@googlegroups.com
Unsubscribe Address: clientwhysconn...@googlegroups.com
For more options, visit this group at
http://groups.google.com/group/clientwhysconnect?hl=en?hl=en
 
Disclaimer --- You use the information shared on ClientWhysConnect.com at your own risk. The information is based upon unsubstantiated member opinions and if you have concerns about the validity of the information you should research the issue thoroughly yourself and arrive at your own conclusions. We will never share any of the information you’ve provided to the ClientWhysConnect.com list with anyone.
--- 
You received this message because you are subscribed to the Google Groups "ClientWhysConnect" group.
To unsubscribe from this group and stop receiving emails from it, send an email to clientwhysconn...@googlegroups.com.
To view this discussion on the web visit https://groups.google.com/d/msgid/clientwhysconnect/CY4PR16MB1832553E269740C4C0729190C0D20%40CY4PR16MB1832.namprd16.prod.outlook.com.

Merlie Lomboy

unread,
Apr 22, 2020, 4:45:23 PM4/22/20
to clientwh...@googlegroups.com
Thank you so much for the prompt reply Lee!
Take care and God bless you!
Stay safe everyone!

 
Merlie D. Lomboy, EA
 
 
This message is confidential. If the reader of this message is not the
intended recipient or an agent responsible for delivering it to the
intended recipient, you are hereby notified that you have received this
document in error, and that any review, disclosure, dissemination,
distribution, or copying of this message of the taking of any action in
reliance on its contents, is strictly prohibited. If you have received
this communication in error, please notify us immediately and destroy
the documents. Thank you.


From: clientwh...@googlegroups.com <clientwh...@googlegroups.com> on behalf of Lee Reams <lee....@clientwhys.com>
Sent: Wednesday, April 22, 2020 1:35 PM
To: 'Jacqulyn Deniston EA Professional Tax Service' via ClientWhysConnect <clientwh...@googlegroups.com>
Subject: Re: [clientwhysconnect] Depreciation, Commercial Solar Panel Energy credit
 

Merlie Lomboy

unread,
Apr 27, 2020, 3:58:11 PM4/27/20
to clientwh...@googlegroups.com
What is the asset life of solar energy system? I have read that it is a 5-year life....

Thank you.

 
Merlie D. Lomboy, EA
 
 
This message is confidential. If the reader of this message is not the
intended recipient or an agent responsible for delivering it to the
intended recipient, you are hereby notified that you have received this
document in error, and that any review, disclosure, dissemination,
distribution, or copying of this message of the taking of any action in
reliance on its contents, is strictly prohibited. If you have received
this communication in error, please notify us immediately and destroy
the documents. Thank you.


From: clientwh...@googlegroups.com <clientwh...@googlegroups.com> on behalf of Lee Reams <lee....@clientwhys.com>
Sent: Wednesday, April 22, 2020 1:35 PM
To: 'Jacqulyn Deniston EA Professional Tax Service' via ClientWhysConnect <clientwh...@googlegroups.com>
Subject: Re: [clientwhysconnect] Depreciation, Commercial Solar Panel Energy credit
 

Lee Reams

unread,
Apr 27, 2020, 4:59:11 PM4/27/20
to 'alan steger' via ClientWhysConnect
Sounds right. Does not fir the 3 0r 7 year category

5 Year Property – Examples: computers, typewriters, copiers, duplicating equipment, heavy trucks, trailers, cargo containers, autos, motorcycles, light-duty trucks, certain technological and research equipment.

Merlie Lomboy

unread,
Apr 27, 2020, 5:03:17 PM4/27/20
to clientwh...@googlegroups.com
Thank you so much again!

 
Merlie D. Lomboy, EA
 
 
This message is confidential. If the reader of this message is not the
intended recipient or an agent responsible for delivering it to the
intended recipient, you are hereby notified that you have received this
document in error, and that any review, disclosure, dissemination,
distribution, or copying of this message of the taking of any action in
reliance on its contents, is strictly prohibited. If you have received
this communication in error, please notify us immediately and destroy
the documents. Thank you.

Sent: Monday, April 27, 2020 1:59 PM
To: 'alan steger' via ClientWhysConnect <clientwh...@googlegroups.com>
Reply all
Reply to author
Forward
0 new messages