Solar panels and rental property

taxpayer owns one rental property with one unit. he has installed solar panels through the Ontario microfit program and wants to claim the income and expense on a business statement. I believe it should be reported on the rental schedule. Note if it goes on a business statement the cca for the panels will reduce the income to zero. On his rental he can't claim the cca unless he has a profit on the rental which he usually doesn't. He has no other business income.

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I would argue that the rental of the building is a separate activity from the solar generation business. This assumes that the landlord owns the rental property and is not renting the panels to the property tenants. As such, I would report the solar revenue and expenses on a business statement not on a rental statement. This would allow the owner of the property to claim the benefit of accelerated CCA on the cost of the solar panels to reduce business income to zero in the early years of the project.

I operate several businesses from one office and would not consider consolidating them as one operation by virtue of the fact that they were located in the same building.

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