This is a rather complex issue I’m trying to work out. My goal is to take advantage of both the federal and state renewable energy incentives by purchasing a PV system for my parents home ~ (my legal inheritance), who live in PA where there is currently a generous state grant which stacks (fairly certain) with the Fed. tax credit. I currently work in NC where I’m renting an apartment.
I have no intention of touching real estate right now so buying my own place is out of the question.
This is the complication. To get the state grant, you must own a home in PA, so my solution is to have my folks deal with the solar installer and claim the grant. However, they do not make enough taxable income to benefit from the rather large 30% federal credit, so I would have to somehow take this credit on my own taxes, which would put the money back in my pocket in 1, maybe 2 fiscal years.
Problem is, the Federal credit requires you to be a homeowner (anywhere) in the United States to claim the residential tax credit. Would it be possible for my father to somehow add me to the house deed as a joint/family owner and enable me to claim the federal credit on my taxes? IRS form # 5695. I am very unfamiliar with how joint home ownership works, so I’d appreciate a knowledgeable answer.
In case it matters, my parents are both alive and legally married.
And anyone tax-savy enough to tell me 100% if joint-ownership would qualify me or not?
This question will be a mute point after July 2010.
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