wjgjr
Active Member
I agree with your general statement and definitely do not want to get into a debate with a CPA on an issue like this. However, this is what is stated on the ITC instructions for 2019 - https://www.irs.gov/pub/irs-pdf/i5695.pdf - "For purposes of both credits, costs are treated as being paid when the original installation of the item is complete...." (And it does have caveats for certain types of construction/re-construction.) So it seems like this credit is potentially a rare exception to the cash-basis accounting method individuals normally use.CPA here...if you want to get technical, I would say that because most of us file our individual taxes on a cash basis, your tax rebate would be earned in the year you paid for your system, whether it be all cash, or the time you signed your loan docs.
I will be interested to see the 2020 form since it will be the first to show the ITC decline. I suppose another interpretation would be that if installed in 2020 but paid for in 2021, you could claim the 26% deduction but only on your 2021 taxes.