Purchase Solution

I have a customer who is a homeowner who is running a busine

Not what you're looking for?

Ask Custom Question

I have a customer who is a homeowner who is running a business from their home and has the opportunity to lease solar panels from company x. Company x is responsible for installation, and maintenance of these solar panels, and replacement of the panels if damaged or if they damage the house. The homeowner can buy the panels out right at any time FMV and then the homeowner will be responsible for the maintenance after the purchase.

What advice would you give both on a structuring a lease transaction. Recommend a leasing option (capital, operating, or other leasing arrangement).would the homeowner do this as a business or a homeowner Please support your recommendation
briefly explain

Purchase this Solution
Solution Summary

I have a customer who is a homeowner who is running a business from their home and has the opportunity to lease solar panels from company x. Company x is responsible for installation, and maintenance of these solar panels, and replacement of the panels if damaged or if they damage the house. The homeowner can buy the panels out right at any time FMV and then the homeowner will be responsible for the maintenance after the purchase.

What advice would you give both on a structuring a lease transaction. Recommend a leasing option (capital, operating, or other leasing arrangement).would the homeowner do this as a business or a homeowner Please support your recommendation
briefly explain

Solution Preview

The homeowner is running a business from their home. If the business were a corporation being run from the home, the taxpayer could not justify the business buying the home's solar panels, and depreciating them 100%, because it is a home. The only advantage for a homeowner to purchase the panels is so that they can claim a residential energy credit, which is a tax credit, because the system being installed in an energy saver solar panel system. The business would be able to enter into the agreement, or the homeowner would, as it really wouldn't matter for any purpose associated with taxes, which would be the primary advantage to the business owner of getting the panels. The area of the office is the main criteria for determining how the percentages will affect the ...

Purchase this Solution
Free BrainMass Quizzes
Basics of corporate finance

These questions will test you on your knowledge of finance.

Learning Lean

This quiz will help you understand the basic concepts of Lean.

Team Development Strategies

This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.

Change and Resistance within Organizations

This quiz intended to help students understand change and resistance in organizations

Marketing Management Philosophies Quiz

A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.

View More Free Quizzes
Related BrainMass Solutions

  • Contracts

    When the second party acts as requested, the first party is obliged to keep his promise. The classic scenario goes like this. A homeowner says to a painter, "I promise to pay you $1500 if you paint my house before the end of the summer."

  • Contracts

    54876 Discussion Assume there is no statute. Can Eileen collect from those who keep the plaque without paying? If not, why not? It would appear that Eileen could collect from that customer if that customer chose to keep the plaque.

  • Statistical Probability Calculations..

    (see chart in attached file) If a student is selected at random, what is the probability that a. The new homeowner has a Visa credit card? b. The new homeowner has an American Express Card? c.

  • Probabilities and Demographic Information

    =Number of people who have both cards / total number of people Since there is nobody who has both cards the answer is =0/150=0.00 d. The new home owner has neither a Visa credit card nor an American Express Card?

  • Statistical probability calculations

    The new homeowner has neither a Visa credit card nor an American Express Card? e. The new homeowner has a Visa credit card or an American Express Card. --- The explanation is in the attached file.

  • Calculate the Probabilities that a student owning a home has a specific credit card.

    57034 Calculate the Probabilities that a student owning a home has a specific credit card. Credit card companies have aggressively solicited new accounts from students who are new homeowners.

  • Inflation

    56232 Inflation Suppose that in 2009 there is a sudden, anticipated burst of inflation. Consider the situations faced by the following individuals. Who gains and who loses? a.

  • Service and Product Design..

    I have also included the references from where I found the content. In the end, I wish you happy learning.// References Goonetilleke, R. S. (2012). The Science of Footwear. Boca Raton: CRC Press McEachern, W. A. (2005).

  • E-Commerce Concerns

    Many times I have called to order a product or ask a question about a certain account and I cannot get a customer service representative that I can understand.

View More Related Solutions