Home Improvement 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.
Tax Deduction for Lawn Care - If you own your own business or work for a company that requires you to meet clients or customers in your home, then you may be able to deduct a portion of the lawn care and landscaping expenses you pay to keep your home’s exterior looking good and presentable.
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.
New Roof Tax Deductions - Certain roof types are considered to be more energy efficient and have a greater positive impact on the environment by reducing energy consumption and lasting longer. There are actually a number of energy-saving home upgrades that can make you eligible for a tax credit in 2009 and 2010, but not all energy saving, or even all Energy Star, products qualify.
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.