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emc011075
emc011075, Tax adviser
Category: Tax
Satisfied Customers: 2313
Experience:  IRS licensed Enrolled Agent and tax instructor
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Do solar panels qualify 179 accelerated depreciation

Customer Question

Do solar panels qualify for section 179 accelerated depreciation on a business property that is owner occupied and who would that work? over what time period would the depreciation be?
Submitted: 1 year ago.
Category: Tax
Expert:  emc011075 replied 1 year ago.
Hi. My name is ***** ***** I will be happy to help you.
Energy property, including solar panels do not qualify for sec 179 depreciation. According to IRS publication 946 properties that do not qualify are land improvements, leased properties, properties used for lodging and energy properties, including "Equipment that uses solar energy to generate electricity".
Here's the link to the publication: http://www.irs.gov/publications/p946/ch02.html#en_US_2013_publink1000107404
You can depreciate it over 5 years.
I see you offline now. So if this answered your question, please take a moment to rate my response so that I may receive credit for assisting you today. However, if you need clarification, or want to discuss this issue further, let me know. Thank you.
Expert:  emc011075 replied 1 year ago.
I see you read my respond. Any questions? Is there anything else I can help you with?
Customer: replied 1 year ago.
I don't think your answer is correct. my accountant does not agree with you and reading the code itself it appears that an Energy Property is listed as an exception to the list of properties that do NOT qualify. so that would mean that it DOES qualify does it not?
Expert:  emc011075 replied 1 year ago.
Here's a respond from another accountant and couple more resources that suggest solar panels do not qualify for section 179:
http://www.justanswer.com/tax/73vg5-section-179-solar-panel-installed-warehouse.html
http://finance.zacks.com/kind-deductions-qualify-under-irs-section-179-5192.html
http://yourbusiness.azcentral.com/tax-writeoffs-sole-proprietorship-business-tools-equipment-24598.html
I agree that IRS publication is not exactly clear on the subject but I still would not take 179 for solar panels. I will opt out, maybe another expert will give you different answer.