What must I know when inheriting a Solar Power System or storage battery?

Solar power systems and storage batteries are attracting attention as environmentally friendly means of supplying energy. Solar Power System generation equipment uses sunlight to generate direct current electricity and consists of solar panels and inverters. Storage batteries, on the other hand, are devices that temporarily store the generated power and serve to supply power at night or in poor weather conditions.

Types of solar power devices include roof- or ground-mounted and portable types. There are also various types of storage batteries, including lead-acid batteries and lithium-ion batteries.

One must consider inheritance procedures and their relationship to fixed assets when inheriting these devices. Understanding the proper handling of solar panels and storage batteries and the precautions to take during a disaster is also essential.

Basic Knowledge of Solar Power Generation Devices and Storage Batteries

Types and Features of Solar Power Generators

There are several types of Solar Power power generation equipment, each with unique characteristics.

  1. Roof-type Solar Power power generation equipment: This type of equipment is installed on the roof of a house and can be incorporated as part of the roof. They have an attractive appearance and the advantage of effectively using the installation space.
  2. Ground-mounted Solar Power systems are installed on the ground and generally on large sites. They are capable of large-scale and efficient power generation.

Portable solar power generators: Portable solar power generators are portable and suitable for outdoor use. They can be used for camping and outdoor activities in combination with rechargeable batteries, etc.

Role and Types of Storage Batteries

Apart from Solar Power devices, storage batteries also play an essential role. Storage batteries are devices that can store electricity generated from Solar Power devices. They generate power when there is sufficient sunlight, store excess energy, and can be used during increased demand or bad weather. This helps to maintain a constant supply of electricity and increase power savings.

There are several types of storage batteries. Typical examples include lead-acid batteries, lithium-ion batteries, and sodium-ion batteries. Each storage battery has its characteristics and advantages. Lead-acid batteries are inexpensive and have a long lifespan, but their capacity and energy efficiency are limited. Lithium-ion batteries have high capacity and energy efficiency but are more expensive. Sodium-ion batteries have characteristics similar to lithium-ion batteries but can be manufactured at a lower cost.

The most common ones used these days would be lithium-ion storage batteries.

How to treat Solar Power power generation equipment and storage batteries in inheritance

Regarding inheritance procedures for Solar Power generation equipment and storage batteries, Solar Power generation equipment and storage batteries are treated as assets. Therefore, an inheritance tax return is required.

If the Solar Power power generation equipment is integrated with a building, it will be valued together with the building, and its value as an inherited asset will be calculated. This is referred to as “equipment attached to the building. On the other hand, newly installed storage batteries and Solar Power equipment may not be declared and valued together as building-attached equipment. This is not good, but they may not be assessed for property tax purposes.

When integrated with the building as a fixed asset

About the inheritance of a Solar Power device or storage battery integrated with a building as a fixed asset, the assessment should already be factored into the building.

Although the valuation amount may be a concern, there is little risk that the valuation will be omitted and the taxpayer will be charged for it later. Here, we will adequately provide the details as documentation to the tax accountant and others.

In the case where the property is newly established and not integrated

In the case of a new installation not integrated into a single unit, the Solar Power system and storage battery will be treated as separate fixed assets in the inheritance. In this case, they must be valued separately.

Please evaluate the property properly according to whether it should be treated as building equipment as per Basic Notice 92 or as general movable property as per Basic Notice 128, which is the method of property valuation under the Inheritance Tax Law.

If you are familiar with the Corporation Tax Law or the Income Tax Law, you may feel very uncomfortable with the classification of the Inheritance Tax Law. However, please be aware of the hierarchical relationship between the laws and proceed with the valuation. In addition to the assessed value, we would also like to ensure that there are no omissions in the declaration.

Solar panels and storage batteries in times of disaster

The role of solar panels and storage batteries in times of disaster is vital. Solar panels can use the sun’s rays to supply electricity in the event of a power outage during a disaster. This allows for necessary power for lighting, communication devices, etc., even during power outages. Storage batteries can also store power obtained from solar panels, making power available at night or during bad weather.

However, some precautions should be taken in the event of a disaster.

Attention to the weight of solar panels

When installing solar panels, one should be aware of their weight. Each solar panel has a certain weight, so it must be sufficiently strong and secured when installed on a roof or building. If the solar panels fall over in a natural disaster such as wind or earthquake, people and property may be at risk.

They cannot be used if broken during an earthquake or other disaster. In addition, if the broken ones fall, they may cause secondary damage. If the roof is too heavy, the building may become unstable. Structural calculations are only done as a building. If panels or other components are not put on the building from the beginning, it is possible that proper structural calculations may not have been done.

Fire and Electric Shock During Disasters

Solar panels can be a fire hazard in the event of a disaster. Because solar panels are installed on roofs and buildings, care must be taken in the event of a fire. Unique firefighting may be required.

If firefighting also takes time after an earthquake or other exceptional circumstances occur, it can be difficult to extinguish the fire in real terms.

In addition, solar panels may continue to generate electricity even if they are damaged. If they are wetted by water, etc., you may receive an electric shock if you approach them. Handle them with great care.

Advantages and Scale of Storage Batteries

Let us consider the advantages and scale of storage batteries. Storage batteries are devices that can store electricity generated from Solar Power devices. Their benefits can be summarized as follows.

Self-sufficiency: Using storage batteries allows for a more significant percentage of self-consumption. While the Solar Power system generates power, excess power can be stored at night or during rainy weather.

Power Stabilization: Storage batteries also serve to stabilize the supply of electricity. They can respond to weather and demand fluctuations and maintain a constant electricity supply.

Disaster Preparedness: During times of disaster, power outages may occur, but storage batteries can be used to maintain power supply. This allows for continuity of life and a safe environment.

The general understanding of selling electricity in storage is that it is often considered business income when the entire amount is sold and miscellaneous income when only the surplus is sold.

It is also essential to consider how large the storage batteries must be. If they are small, they are sold separately as storage batteries. The product you select should depend on whether the purpose is to store solar panels or to prepare for disasters.

Will I be caught if I don’t declare my solar power generation equipment and storage batteries?

Japan Tax Consultant Office -Simplify Japan Tax- | What must I know when inheriting a Solar Power System or storage battery?

Do I have to declare it? Does the tax office find me out?

This is often asked. However, it is essential to note that you could be in big trouble if you do not file a tax return and it is discovered later.

Large cash movements will be checked.

If you acquire solar power generation equipment or storage batteries without declaring it, the tax office may check large cash movements. The tax office conducts regular investigations to understand the flow of high-value assets and income. Particular attention should be paid when the acquisition cost of solar power generation equipment or storage batteries is significantly significant.

Therefore, if you own solar power generation equipment or storage batteries, you must file an accurate tax return. Failure to declare or false declaration may result in guidance from the tax office and additional taxation.

Aerial photographs will also be checked.

Aerial photographs are one of the tools used by the tax office to verify the installation of Solar Power equipment and storage batteries. The tax office may utilize aerial or satellite photographs to find fraudulent tax returns or omissions. If the location and size of the Solar Power equipment and storage batteries are significant, their presence may be well known.

You can also check aerial photos annually or biannually on Google without photographing them. Even a layperson can confirm this, so there is no reason for the tax office to be unaware of it.

Aerial photo verification is part of the tax office’s research methodology. These photos document the installation, number, and location of solar panels. The tax office can use this information to check for consistency with the tax return and find any omissions or false declarations.

Conclusion.

Proper procedures and filing are essential when inheriting Solar Power equipment and storage batteries. The first step in the inheritance process is to file an inheritance tax return. If the Solar Power equipment and storage batteries are integrated into a building, they are valued together with the building, but newly constructed ones may be valued separately. In the event of a disaster, the weight of the solar panels should be noted to avoid causing a fire. Also, consider the size and quality of the storage batteries. The location and size of the installation should be declared accurately, with some confirmation by aerial photographs. When inheriting Solar Power equipment or storage batteries, it is essential to follow the rules of the tax office to ensure proper inheritance procedures and declarations.

The following points summarize the main points when inheriting Solar Power equipment and storage batteries.

Points

  1. Inheritance procedures must be appropriately included in the inheritance tax return or square stew.
  2. If the Solar Power device or storage battery is integrated into the building, it is valued together with the building. If they are not integrated, they may be valued separately.
  3. In the event of a disaster, be aware of the weight of the solar panels to prevent them from causing a fire.
  4. Consider the size and quality of the storage batteries. It is important to select storage batteries of appropriate size and performance.
  5. The location and size of the installation should be accurately declared, with some confirmation by aerial photographs.
  6. The tax office will check large cash movements and changes in assets, so it is essential to file an accurate declaration.

Inheritance of Solar Power equipment and storage batteries requires proper implementation of inheritance procedures and tax reporting. Following the rules of the tax office and providing accurate information will ensure a smooth inheritance.



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