Yes personal home. I understand that it has to be a primary residence but the final stages of construction can be held up for many reasons. It seems to me that if the equipment and its installation were paid for in the year that the credit applies, then one should qualify. But when they say operational, how do they define that? And how can they verify it? And at what stage would that be relevant? For example, say the installation is complete but PGE says you cant turn it on until they change the transformer on the pole. Is that operational? And how would the IRS know? Is it only something that would come up if we were audited or do they expect some proof to be submitted with the forms?

@Eric Lu it only applies for a primary residence. There is something for businesses as well but thats for commercial property. Im not sure what the limitations on that are.

In most cases, the depreciation is too good to pass up. But the only sound financial advice you will ever hear is ‘it depends’. Always need to know the specifics before knowing what someone should do.

I live in Northern California, I am not currently in real estate but I help clients reduce taxes, protect their income and build wealth with passive real estate investing.

This is awesome! I am happy to be here.

@Joaquim Resende is correct. I am not a loan originator but I have one who I refer clients to often. I am also in NorCal btw. Not only can you keep the home while using the tax free distribution from its equity for your next venture, you will also pay the mortgage off way faster if you structure it right. It’s hard to believe when you have a low interest rate but I’ve seen it in action. It’s because the interest is calculated differently. In the recent example, my client was able to pay off her 26 year mortgage (at 3%) in 7 years by using this other type of loan. With permission from the admins, I am happy to refer you to the person I recommend for this, she has been doing loans since 1998.

@Ana Klein, CPA requesting permission to make a polite an professional referral ☝️☝️NO SPAM