Can I claim my own labor on the federal tax credit?
- Thread starter Noho
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Mike 134
Solar Enthusiast
following thread, popcorn in microwave.
timselectric
If I can do it, you can do it.
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Only if you have a way to charge for the labor. A company with a tax ID number. It would also have to be a company in the field.
Solar Guppy
Red Cobra Guppy
Short answer: No
Long Answer: You can put anything you wish on a tax filing, but if your audited could be in a world of hurt with fines or worse if the IRS rules against you.
Long Answer: You can put anything you wish on a tax filing, but if your audited could be in a world of hurt with fines or worse if the IRS rules against you.
timselectric
If I can do it, you can do it.
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My company is paying for my system, as a product training experience. I could claim my labor, but I'm already getting a write off for the equipment. I figure that I'm getting a good enough deal.
That's a great idea
timselectric
If I can do it, you can do it.
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Exactly
It wasn't worth it to me.
timselectric
If I can do it, you can do it.
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You can still claim the equipment and materials.ok got it. I have to be running a business to qualify. Maybe I need to start an LLC.
Ampster
Renewable Energy Hobbyist
Maybe do the math first before you waste your time.
Ozark Tinkering
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Buzzkill.
I don't believe so. I know for sure that a home owner cannot deduct his/her own labor hours building an addition to his/her house against the capital gains when selling his/her house, however building materials are deductible. Make sure you deduct the bolts & nuts for solar panel framing. Those things are expensive.
nscottsdale
New Member
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and i guess tools are in the "gray area"
Hedges
I See Electromagnetic Fields!
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You and a buddy could each pay the other for labor on your respective systems.
You collect gross income, but of course invest in your business buying tools and the like.
If you don't already have a maxed out 401k, open an individual 401k this calendar year, and fund it (with employee and employer contributions) before tax deadline.
Tools and expenses come off before social security tax, 401(k) after. Tools avoid income tax. 401(k) defers it.
You collect gross income, but of course invest in your business buying tools and the like.
If you don't already have a maxed out 401k, open an individual 401k this calendar year, and fund it (with employee and employer contributions) before tax deadline.
Tools and expenses come off before social security tax, 401(k) after. Tools avoid income tax. 401(k) defers it.
Ampster
Renewable Energy Hobbyist
And still nobody has done the math?
Zwy
Emperor Of Solar
Yes, and also sales tax depending on the state will be collected on the labor and paid to the state. W9 and 1099, quarterly filings probably will apply, I'm certain there is more paperwork too if it's a LLC. Then we get into worker's comp with the LLC as the person will be considered an employee and not sole proprietor.
Ozark Tinkering
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My guess is if your a person trying to figure out how to claim your own labor on one tax form while ignoring all the otrher tax forms, you are a person who doesn't earn enough in wages in the first place to even benefit from the tax break available for the material cost alone and when the day comes to file for Social Security benefits their award will be a puny one. Same as all the folks playing in the gig economy while doing everything they can do to avoid paying payroll taxes. Good luck with that.
