Is a whole House Generator Tax Deductible?

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There are different ways to save on your taxes and one of them is the installation of generators or emergency power equipment.

However, this kind of tax deduction is viable only under the following situations.

Generator Purchased for Medical Expenses

If you have purchased a whole-house generator to meet your medical needs, the amount can be deducted as medical expenses.

Nevertheless, you need to provide clear proof that your physical or mental condition demands a standby generator.

For this purpose, you can furnish a letter from your doctor suggesting your medical condition. You can submit this letter along with the tax return and obtain the tax deduction.

A few of the circumstances under which you need to install a standby generator are as under.

  • When a physically disabled person is living in your home who uses a battery-operated wheelchair, which requires charging
  • Patients suffering from sleep apnea who need a C-Pap machine
  • Kidney patients who regularly use dialysis machinery

Energy Tax Credits

In fact, you can avail of the energy tax credits while installing the gas generators.

This is so, as the federal government doesn’t offer any kind of tax relief for gas/diesel generators.

On the contrary, you should think about renewable energy sources such as solar and wind. The propane and natural gases burn cleaner and leave a minimum carbon footprint.

Moreover, a gas generator can also run on biomass methane gas. This suggests that you are utilizing renewable energy resources.

As a result, you may take advantage of the subsidy, additional non-taxable state grant, or some kind of tax credit for using this type of fuel.

In order to check the specific regulation regarding this kind of tax deduction, you should contact your local environmental and energy authorities.

This will allow you to know what type of tax credits you can obtain.

Deduction in Capital Gains Tax

Since the real estate market is always under the radar of tax authorities, being worried about the capital gain tax is natural.

Almost, every homeowner looks for a good price while selling his/her home. If you manage to get a reasonable profit or capital gain, you have to pay tax on the amount.

By installing a home standby generator, you can deal with this issue.

For instance, if the value of your home increases due to the installation of a whole-home generator, it can boost the resale value.

As a result, you can enjoy some tax deduction by submitting the receipts of the purchase and installation of your generator.

This will help to offset a reasonable amount associated with your capital gains tax.

Conclusion

If you ask whether a whole house generator is tax-deductible, the answer is yes. However, in order to get this kind of tax relief, you need to meet certain requirements.

For this purpose, you can take the plea of your medical condition or that of your family member.

Besides, by using renewable energy sources, you can also obtain some relief in terms of your payable taxes.

About Steven

Steven is an engineering graduate with amazing zeal and enthusiasm. He is fascinated by solar power and has set up a small solar plant at his rooftop.

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