Home improvements are a excellent way to make positive, much needed changes in your home while also helping to increase the home’s value. In addition, some home improvement projects are actually tax deductible and can save you lots of money come tax season. Here are some of the best home improvement projects that will be tax deductible.
Switching to solar power can be a tax-deductible project with numerous other benefits. This project not only helps you save during tax season, but all year long. Installing solar paneling allows homeowners to absorb the energy of the sun to power their home. You will invest in installing the panels, however after that, you energy will be free! This means you energy bills will be significantly reduced, cutting back on your monthly energy bill expenses tremendously. In addition, you can feel good about this project since you will be helping the environment and reducing your carbon footprint. Solar power is also extremely attractive to potential homebuyers and can draw positive attention to your home when you go to sell it, setting your house apart from the competition.
Other projects that qualify for tax deduction include those that will improve the home’s overall condition increasing the property value, lengthening the expected lifespan of a building. These changes include restoring a home’s foundation or even remodeling key rooms in your house such as the kitchen or master bathroom since these rooms sell homes and increase property value significantly. You may also be eligible if you are converting it for a completely new purpose such as converting a home into an office building, or a garage into a studio space. You will then be able to spread out deductions over time.
Another way to receive tax breaks or deductions is if you are doing home improvements in order to repairs damages after losses from a natural disaster or disaster or any kind. Due to the inconvenience and trauma of these events, the government often tries to help ease the suffering and stress post disaster. These deductions will apply to repairs you are making to the home to make it livable and safe once again after an unforeseeable disaster such as a fire, earthquake, robbery, tornado, or hurricane.
Home improvements for historical preservation are often eligible for tax deductions. If your house is considered a historic property and was constructed before or during the 1800′s, the government will either give you tax credits around 10-20 percent to restore the home and bring it back to its original state for an authentic look that is true to the original characteristics of the home.
If you are considering a home improvement project, check with your tax professional to see if you may be eligible for tax deductions because of your investment in the property. While not all projects will qualify, it is always worthwhile to check. Once you are ready to begin your project you can hire a pro home improvement expert and get started transforming your home and hopefully saving on tax deductions as a result of your investment!