07 May That doesn’t count as financial advice, does it?
I’ve done a post before where I interviewed an accountant on the differences between a Chattel and a Rental.
I did it with an accountant because as smart as I think I am, I’m not qualified to speak on the issue. And neither are you.
A lot of solar salespeople run their “advice (not advice)” past me before telling their clients. Most of the time it’s just flat out wrong.
There is a reason we’re not allowed to speak on this issue. It’s because most people don’t know what they are talking about.
People treat the rule like jaywalking. We know it’s technically wrong, but it doesn’t really get enforced, so who cares right?
The only difference is, that if and when the rule does get enforced there is a $36,000 fine and 2 years jail time.
To be flat out honest, giving the customer the answer to that question doesn’t win you anymore business.
Some may disagree with that. But either way the risk is just too great for the reward.
Truth be told even if the client makes the wrong decision (tax wise) it’s not the end of the world.
The benefits from the energy savings are usually far greater than any tax benefit you’d get. And energy savings is what you’re selling at the end of the day, not financial advice.
Also there are other factors that go into the choosing a finance product. Rather than just tax.
Which one is cheaper?
You know what’s better than a tax write off? Keeping your money!
Do I get to own it?
Some people just want to own the asset, not rent it. They don’t care about the tax advantages/disadvantages.
How can I get approved?
Sometimes applicants can only get approved through one financier. That particular financier may only offer one product. In that case you don’t really get a choice.
So in short, my advice, would be not to give financial advice.