Evolith
2022-06-17 08:57:41
- #1
The only problem is that these losses would reduce your income tax if you don’t choose hobby status. Your tip is like advising someone not to file an income tax return even though they would receive a refund.
Please read carefully. That was not a tip, but a statement.
And no, depreciation is not necessarily a good idea in every case; there are catches. Depending on the price at which the system was purchased, whether in cash or with a loan, and how much it produces, it can quickly turn negative after a few years. My tax advisor (who is well versed in photovoltaics and taxes) calculated this for us. In addition, the tax office can be somewhat prickly. That can make life very unpleasant. And I simply trust the expert who has dealt with this several times.