Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 11-01-2017, 01:14 PM
Junior Member
 
Join Date: Oct 2017
Posts: 5
does a solar purchase reduce taxable income?

I'm a solar developer and our new solar proposal tool seems to think a solar purchase reduces taxable income, substantially reducing the net cost, and once the ITC and depreciation are applied, the cost is a bit too unbelievable. I'm going to attempt to attach the cash flow with the breakdown of how the tax benefits are being calculated. I'm not a CPA, this stuff is greek to me so I'd like to get confirmation from a pro. Thank you for your help.

Yes this is a repeat post but the format is a bit odd and required a bit of a learning curve.

Attached Images
File Type: jpg Capture.JPG (88.0 KB, 1 views)


Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 11-01-2017, 01:37 PM
Junior Member
 
Join Date: Oct 2017
Posts: 5
Isn't there a difference between expensing and capitalizing?



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #3 (permalink)  
Old 11-01-2017, 09:01 PM
Moderator
 
Join Date: Oct 2010
Posts: 4,835
Quote:
Originally Posted by SolarGuy View Post
Isn't there a difference between expensing and capitalizing?
yes definitely;Management typically has some discretion in determining if the cost of an item should be capitalized to the balance sheet and depreciated to the income statement over time or if the cost of the item should be fully expensed to the income statement in the current period. In general, any expenditure that is expected to provide economic benefits for multiple accounting periods should be capitalized.When a cost is capitalized, it is reported in the balance sheet as an asset. The cost is then allocated to the income statement over multiple periods as depreciation expense for tangible assets and amortization expense for intangible assets.On the other hand, if a cost is expensed in the current period, it reduces the pre-tax income by that amount.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Need to reduce 2014 AGI Is it possible after 1/1/15? dubldot For 2014 0 01-30-2015 11:15 AM
What is Taxable or Non-Taxable Income? Samatg Income 4 09-26-2014 01:09 AM
How to Reduce Tax etax4868 Income 1 03-08-2013 06:54 AM
How do you reduce you Interest Income from a contract for deed? paseaj Miscellaneous 0 01-26-2010 08:03 PM
Would unemployment & disability income be taxable for NJ gross income tax purposes? TaxGuru New Jersey 0 10-03-2008 10:58 PM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning