Let us hear out the bad news first. You cannot deduct your home improvement loans from the federal taxes that you pay at the end of the year. As per the concernment of IRS, the home improvements include anything that keeps on adding more value to your home or increase the usefulness. Improvements are considered different from the repairs.
Now, it is time for some good news. There are possible chances that you may be able to find other ways to use the home improvements so that it can give you some added tax benefits. To match up with it, there are certain criteria that it needs to meet.
Here are a few examples of home improvement tax benefits
- Energy tax credits: Most of the federal tax credits expired at the end of 2016. But still, there was one that was meant to extend to 2019. It is known as solar energy credits. Yes, the solar hot water system and the solar panels can help you earn 30% of the total cost of purchasing and installing them. In addition to that, there are many states which provide tax incentives for energy efficiency. These incentives come in the form of property tax exemptions and sales.
- Medical Improvements: If you are planning or currently making renovations to your home for any medical reasons, you can claim them as the medical expenses on your federal taxes. All you need to have is a documentation provided by a doctor or any kind of paperwork by the company which is performing the improvements.
- Home office improvements: If you have enough space in your home that can be exclusively used for business purpose, it can help you in some deduction of the actual renovation costs. This doesn’t come in any write-off at the end of the year. Instead, you need to depreciate improvements. It begins in the first month in which the renovated space comes into use and end when you stop using the area.
Architectural landscape design Inc. can provide you guidelines about home improvement tax benefits and assist you through the whole process. They have a long list of happy clients who have really been quite satisfied with the companionship they got.