Have Your Forgotten These House Tax Credits
A lot of homeowners are living in one of their largest tax deductions without even knowing it. This is especially true of people who have upgraded ...
A lot of homeowners are living in one of their largest tax deductions without even knowing it. This is especially true of people who have upgraded their home or done some remodeling project recently. There are actually lots of different ways you can use home improvements for tax deductions.
The improvements you make to your home can be eligible for deductions or credits depending upon the size of the project, the reason for the home upgrade and the cost and time frame that was allotted to the remodeling or home improvement.
Lawn Care Tax Deduction – Yes, if you run a business out of your home and you meet clients then you may be able to deduct things like lawn care and landscaping costs as a business expense. You probably won’t be able to deduct the entire amount, but rather, you would have to deduct part of the cost in proportion to how much your business and home share the same space.
Tax Deduction for a Swimming Pool – If you require a swimming pool or spa for a medical condition then you may be able to deduct a portion of the cost from your taxes. You’ll want to document your medical history and pool costs in detail and you may need your doctor to write a letter stating your need.
Tax Credit for New Windows – If you’re planning to upgrade and replace your home’s old windows with new energy efficient ones, now’s the time to do it. There are now tax credits in place for the 30% of the cost of eligible windows, up to $1,500 for the next two years.
It’s always a good idea to take copious photos and keep as much information about each home improvement you perform on your house anyway, because those items may become necessary if you ever have a problem or wish to sell your house in the future. There are lots of details and criteria for some of these deductions and you may want to speak to a qualified tax expert before embarking on a home improvement.
Not all home improvements qualify for tax deductions or tax credits, but with a little research and planning you can definitely save some money on your taxes and upgrade your home at the same time.
These are just some of the many that you may qualify for. There are actually lots of different you can use to lower your taxable income!
