Solar is one of the biggest opportunities real estate investors miss, and rental property owners have the most to gain. Here’s why: When you purchase and install solar equipment in the U.S. in 2022, you are eligible for a dollar-for-dollar tax credit of up to 26% of the purchase price. (Timing matters. This will drop to 22% in 2023 and unless Congress acts, will be eliminated in 2024.) You also can use 100% bonus depreciation to depreciate most of the cost of the equipment (87% in 2022 and 89% in 2023). Both of those benefits are available to any real estate owner or investor. If you’re renting the property, you can take this further by selling electricity directly to tenants. There are two options, depending on the type of lease. In a gross lease, you would structure the lease so that the rent includes utilities with you enjoying the benefit of lower electric operating costs. In a net lease, where utility costs are not included, you may be able to establish a landlord-tenant Power Purchase Agreement, or PPA, which allows you to sell electricity from the solar system directly to tenants. INSTALL A SOLAR POWER SYSTEM ON YOUR RENTAL PROPERTIES 3
SOLAR IS ONE OF THE BIGGEST OPPORTUNITIES REAL ESTATE INVESTORS MISS.
Investing in apartments and other real estate is a terrific way to build wealth while legally reducing — or even eliminating — your taxes. Take the time to understand the many tax credits and other incentives available, and you will find yourself making way more money and paying far less tax.
TOM WHEELWRIGHT, CPA CEO of WealthAbility Buy Tom’s New Book: The Win-Win Wealth Strategy: 7 Investment the Government Will Pay Your to Make Tax and wealth expert Tom Wheelwright is a CPA, CEO of WealthAbility, Rich Dad Advisor, entrepreneur, international speaker, and author of The Win-Win Wealth Strategy: 7 Investments the Government Will Pay You to Make (published July 12, 2022) and the bestseller Tax-Free Wealth: How to Build Massive Wealth By Permanently Reducing Your Taxes. Wheelwright is the CPA for Robert Kiyosaki and has spoken on stage on every continent to over 100,000 entrepreneurs, small business owners and investors. He also is the host of two popular podcasts: The WealthAbility Show with Tom Wheelwright CPA and The WealthAbility for CPAs Show.
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