Jesse Installed Solar Panels in Front of His Office Building

question 92

Essay

Jesse installed solar panels in front of his office building in 2013. The panels are not attached to the building. After using the solar panels for 13 months,Jesse decided to replace them with a newer model to obtain a greater savings on electricity costs. Jesse sold the old solar panels for an amount greater than his original purchase price. What tax issues should be considered with purchase,use and sale of the original solar panels?

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Definitions:

Device

A piece of equipment designed for a particular purpose, often electronic in nature.

Demand Instrument

A financial document that requires the payment of money immediately or on demand.

Time Of Payment

The specific period or date by which payment for goods or services received must be made.

Voidable Instrument

A financial document or contract that is valid but may be annulled by one or more of the parties to the contract.