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Updated almost 2 years ago on . Most recent reply

User Stats

83
Posts
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Kyle Swengel
  • Rental Property Investor
  • Tucson, AZ
50
Votes |
83
Posts

Only 1/4th tax credit on solar on my 4plex?

Kyle Swengel
  • Rental Property Investor
  • Tucson, AZ
Posted

Hi BP,

So, I'm under contract on solar to be put on my 4plex in Tucson AZ. I pay the utilities and I will always pay the utilities at this house. All four units are travel nurse mid-term stay housing, so it makes sense for me to keep them in my name. And I have since gotten rid of all of the gas appliances and water heaters in the building so the whole property is electric now. 

I live in one of the furnished units and I have it under the VA loan as my primary residence. But I was unaware that I would only be receiving 1/4th of the 30% tax credit because I only reside in 1/4th of the 4plex. Is this correct? And what else on this subject am I unaware of? I thought locking in an electricity payment or lack thereof would be a great choice for me, not to mention my property is perfect for solar with how tall and flat it is, and that I pay for all utilities. I'm a little shocked because I wrapped a few other things into the loan that are related that need fixed on the property thinking that I would get 30% back on those as well...

I'm a little frustrated and wonder where I went wrong, if I did. Please let me know your thoughts!

Kyle

  • Kyle Swengel
  • Most Popular Reply

    User Stats

    28,186
    Posts
    41,287
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    Nathan Gesner
    • Real Estate Broker
    • Cody, WY
    41,287
    Votes |
    28,186
    Posts
    Nathan Gesner
    • Real Estate Broker
    • Cody, WY
    ModeratorReplied
    Quote from @Kyle Swengel:

    I don't understand why it would work this way, other than to say that solar still feels like a scam to me. Costs more than it should, produces less than it should, and only survives because taxpayers are subsidizing it. 

    • Nathan Gesner
    business profile image
    The DIY Landlord Book
    4.7 stars
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