Is residential rental property owned by an LLC eligible for the solar energy credit?
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Tax Professional Answers
Caran Ebert, CPA
An LLC (Limited Liability Company) is a pass-through entity for the members of the organization. Each member is issued a K-1 in the proportion designated by the Articles of Organization (or Articles of Formation in some states). All the items listed on the K-1 are placed on the member's individual tax return and taxed at the member's tax rate for that year. Credits for Solar Energy are very limited for individual tax returns in the current tax year and are prohibited for second homes and investment property (rental property). Solar Energy Credits are only available for your main home located in the United States. All available credits for partnerships are listed on pages 35-37 of the Instructions to Form 1065 US Return of Partnership Income which is available for download at www.irs.gov.Leave a Comment 453 weeks ago