Nov. 10, 2022, 5:00 AMTaxpayers were disallowed a depreciation deduction for solar lenses as an incidental profit motive isn’t enough; Taxpayers needed to show that profit had been the dominant or primary objective of the venture, the Tenth Circuit Court of Appeals held, affirming the Tax Court’s ruling. Husband’s company entered into a lens-sale-and-leaseback transaction with an enterprise where the enterprise would use the lenses in a new system to generate electricity by heating a liquid to generate steam and drive a turbine, but the system was never finished. From 2009 to 2014, Taxpayers annually claimed depreciation deductions and solar energy credits and reported … © 2022 Bloomberg Industry Group, Inc. All Rights Reserved
Case: Depreciation Deductions, Solar Energy Credits for Solar Lenses Disallowed, Incidental Profit Motive Not Enough (10th Cir.) (IRC §183)
