Home Improvents to Lower Your Tax Bill (What You Want To Know Wednesdays)
Have you remodeled recently? Or, are you considering remodeling your home? The right kind of renovations can save you precious tax dollars if you itemize your taxes.
Use Your Mortgage to Make Home Improvements
You can save some money by making improvements at the time of purchase. If the mortgage you take out includes additional money for renovations, you may be able to deduct the interest on the additional costs.
The Residential Energy Efficient Property Credit allows taxpayers a tax credit of up to 30% for:
- Qualified solar electric systems
- Qualified solar water heaters
- Qualified fuel cell property
- Qualified small wind energy property
- Qualified geothermal heat pumps
In place of pricier energy efficient updates, you can swap out your doors and windows for energy efficient doors and windows for a $500 tax credit. Be sure to read the tax credit qualifications thoroughly.
Some additional energy improvements include:
- HVAC upgrades
- New roofing
If you have to upgrade your home with medically necessary improvements, you may be eligible for a tax credit. Some improvements include:
- Wheelchair ramp/lift
- Heated therapy spa
- Widening entrances or exits
- Adding handrails or grab bars, not in the bathroom
- Lowering or modifying kitchen cabinets