Question
In current tax year, David purchased a solar system to generate electricity for his home, at a cost of $5,000. Answer of the following questions.
In current tax year, David purchased a solar system to generate electricity for his home, at a cost of $5,000. Answer of the following questions. Explain and show supporting computations.
a. How much is his tax credit in the current year?
b. If he had purchased a solar heating system for his swimming pool at a cost of $3,500, how much could she claim as a tax credit?
c. If he had purchased a $5,000 solar electric system and a $4,500 solar heating system for his principal home (not for the swimming pool), how much could he claim as a tax credit?
d. If he had purchased the electric system for his principal residence and the solar heating system for a second residence, how much could he claim as a tax credit?
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