Do refurbished parts qualify for tax credit?

[justinm001]

If you pay yourself $50k to install, that $50k must be reported as income. Saving an expense does not mean you can claim it as an expense to get the tax credit from it. If you did pay yourself $50k, then you'll end up paying even more in taxes than the 30% credit you receive.

True but that 50k is BUSINESS income and not PERSONAL income thus subject to business deductions and classifications depending on the type of business (LLC or C-corp).

You just need expenses that can cover much if not all that 50k. You can now write off your tools you needed or thought you might need, the laptop you used to setup the devices and even things like mileage on your car to go to the store and get stuff. Maybe you decide to go to the annual solar convention in vegas (idk if thats real) but then your entire trip is an expense. Its not hard to find ways to cover those expenses

 

[Supervstech]

True but that 50k is BUSINESS income and not PERSONAL income thus subject to business deductions and classifications depending on the type of business (LLC or C-corp).

You just need expenses that can cover much if not all that 50k. You can now write off your tools you needed or thought you might need, the laptop you used to setup the devices and even things like mileage on your car to go to the store and get stuff. Maybe you decide to go to the annual solar convention in vegas (idk if thats real) but then your entire trip is an expense. Its not hard to find ways to cover those expenses

Again...
You can claim whatever you want, if it triggers an audit, it wasn't worth it...

 

[webbbn]

True but that 50k is BUSINESS income and not PERSONAL income thus subject to business deductions and classifications depending on the type of business (LLC or C-corp).

You just need expenses that can cover much if not all that 50k. You can now write off your tools you needed or thought you might need, the laptop you used to setup the devices and even things like mileage on your car to go to the store and get stuff. Maybe you decide to go to the annual solar convention in vegas (idk if thats real) but then your entire trip is an expense. Its not hard to find ways to cover those expenses

Personal property and business property are two different things, and you can't just "write them off". You may be able to legally eek out a few $ by allowing the "business" to use your personal tools, but if the business buys the tools, the business owns the tools, and you can't use them for personal use without some compensation. I think the IRS might also get suspicious if a major portion of the "solar installation" expenses went to paying the contractor to go to a convention in Vegas.

 

[justinm001]

Personal property and business property are two different things, and you can't just "write them off". You may be able to legally eek out a few $ by allowing the "business" to use your personal tools, but if the business buys the tools, the business owns the tools, and you can't use them for personal use without some compensation. I think the IRS might also get suspicious if a major portion of the "solar installation" expenses went to paying the contractor to go to a convention in Vegas.

Correct except you absolutely can use business property for personal use. There are exceptions and specific rules but generally if it was purchased for business use or primarily used for business you can deduct it.

It's very normal for business owners to have their company pay for their cell phone or laptop and use for both business and personal.

And they absolutely would not be concerned if you started a company to sell solar panels then went to a business convention to make contacts and learn about the products. Even if you shut the business down after realizing you weren't able to get more than the first sale.

 

[Watts Happening]

There are many ways to do things.
I haven't claimed any tax credits for my system.
Instead, it has all been purchased by my company. It's all deducted from my profits. (Product testing and employee training)

I do this as well. “Massage” the law as we see fit.

It’s incredible how little people understand about business and taxes. It’s almost like most people have jobs.