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There IS currently a marketplace fr STATE tax credits, but I have nothing for federal
Do realize, however, that you can carry forward your unused tax credit to future years
See this from IRS:
While Code §39 generally provides for a 1 year carryback and 20 year carryforward for current year business credits that exceed the limitation of Code §38(c), no portion of the unused business credit can be carried back to a tax year before the first year for which that credit is allowed. §§39(a) & (d)
my question is if it is legal to sell Federal ITC
If you'll let me move us to the Q&A mode, I'll do the research .... I have access to the full tax code (Title 26 of U.S. code, all federal cases all state cases and US Supreme and Tax cour decisions holding and analysis) ...More than likely this will be handled in what's caked a treasury regulation... I know that the code itself only estatblishes the cod
ore than likely there is non statute (law created by contres that disallows it or makes it a criminal or civil wronf
what is it Q&A mode ?
NO Statue (law)
Rather than talking in real-time chat as here ... we continue our dialogue through an exchange where we cominually respons do eah other
You've asked an intriguing question, One of the first things I'll do is consult with my tax law professor form Lawschool She is VERY up[ on the most recent issues
BUT, what you WILL eventualy need is the actual citation to code, case law or both
well we can discuss details of how or who latter ... i just wanted simple answer is it legal ?Y/N:)
That will give me th tme to answer your questions thoroughly and accurately
There is no law that I can find that makes it a crime
And so I'm looking here I find nothing that makes it a CIVIL Penalty either
Give me a minute here
Yes, you can sell your credits
See this: http://buyenergytaxcredits.com/energy-tax-credits-p-20.html
Government (under the current tax code) allows green energy firms to sell these credits and depreciation.
Here's how it works:
From a company that SELLS (and buys) these credit … this is from the perspective of the buyer
This flow chart simplifies the order in which the events take place. This example assumes you have already paid the IRS your taxes that were due. 1. We find out how much taxes were paid to the IRS in the last year by you. 2. The solar company issues a K-1 for that amount. 3. K-1 is given to your CPA (certified public accountant) to be turned in to the IRS. 4. In 2 to 3 months, the IRS will issue a refund to you. 5. Once you receive the IRS refund, you issue a check to the solar company for 90% of the amount you received. 6. You keep the 10% savings. 7. Repeat the steps for future tax returns
I have found one case, called the Historic boardwalk case , that disallowed credits ... hang on a sec
So basicaly the % are set by law ? or can be negotiable by sale agreement ?
Negotiable, and needs to be done by someone that has explored the possible dissalowance... some have been see this:
Thirm I linked to you had this to say about that:
In the historic boardwalk case, there was 23 points that the government had a problem with in regards XXXXX XXXXX the project was structured. The way that we have structured our tax credits is completely different and we don't violate any of the 23 points that the government had an issue with. If you would like your CPA to speak with one of our support staff on this case, we would be happy to do so with you and/or your tax professional.
t try to do this without eother using a company such as this or using a good CPA/tax atty with experience in the area
Here's was another issue re: Boardwalk:
Given the atypical (not commonly done) nature of this IRS probably WILL look at it
You noticed that the firm talked about issuing K-1 .. what you're really doing here is setting up a partnership (joint venture) ... and IORS will look at whether that arrangement was done according to statute law
Here's another firm with experience on BOTH sides of the transaction, it appears: http://fallbrookcredits.com/?gclid=CPi90N-s5LkCFSdk7AodnxMAfg
Thank you very much
SO, full circle ... YES it IS legal, but must be done VERY carefully ... and I wouldn't be doing my job if I didn't point out that Carrying forward the credit and using it yourself, to wipe out tax bill until it's used up (going forward) comes with more certainty
BUT it IS doable
you have been very helpfull
f this HAS helped, I would appreciate a feedback rating of 3 (OK) or better … That's the only way they will pay us here.
HOWEVER, if you need more on this, PLEASE COME BACK here, so you won't be charged for another question.
You're very welcome (positive feedback appreciate... It's the only way I get paid)
BUT if have another question on THIS come back here ... Also the links provided above will stay active for future reference
Thank you Lane im putting in the highest rating for you ofc :)