Have Your Forgotten These Home Income Tax Credits
If you’re a homeowner who pays income taxes in the United States you may know that there are a multitude of costs and expenses you can deduct from your taxable income to reduce your taxable income and save money each year. Sure, you can usually deduct the amount of interest you pay on your mortgage or home equity loans, but there are also a multitude of home expenses and upgrades you can also tax off your income taxes if you meet certain criteria.
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.
Elevator Tax Deduction – If you need to install electric stairs, a wheelchair ramp or even an elevator in your home because someone living there recently required a wheelchair then you may be able to count the cost of that home remodeling as a tax deduction.
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.
In most cases you’ll have to itemize to take advantage of some of these deductions and some individual cases may need additional documentation outside the regular forms and figures. 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.
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.
