Many homeowners in the country often wonder whether home improvement projects are tax deductible or not. If you are planning to renovate your house or if you have already renovated your home, then you will probably be asking this question to yourself. However, the simple answer is that it will entirely depend on your home improvement project.
Some of the most common tax-deductible home improvements and repairs are listed below, which will give you an insight into each one of these projects and allow you to save hundreds of your valuable dollars.
Energy Efficient Renovations
Even though the list of energy-efficient tax credits in 2016 had already exceeded beyond that of 2017, there are still numerous opportunities for saving money. Installing solar energy systems on your current home during a remodeling process will result in a 30% deduction of the remodeling cost. This is applicable to both solar water heating systems and solar-electric properties, and these incentives will be available at 30% rate until the year 2019.
Home Improvements for Medical Care
It is a widely known fact that tax-deductible home improvements for the sole purpose of medical care can actually be a little bit hard to come by. However, if the home improvements are deemed necessary and if the improvement cost seems sizeable, then you might be able to enjoy these tax deductions.
You should note the fact that you will be able to include expenses for the medical equipment that are installed in your house. However, the primary purpose of the medical equipment should be to provide medical care to you, your partner, or any other resident in the house. Some of the most popular home improvement projects for medical care that are tax deductible include:
- Building exit and entrance ramps
- Widening doorways and hallways
- Modifying or lowering cabinets of your kitchen
- Installing support bars in your bathroom
- Adding lifts for getting from one floor to another floor of your house
Home Office Improvements
No matter whether you are running an active business or you are simply self-employed, home office renovations will be deducted as business expenses in most cases. However, you will have to note that the deductions will be only applicable to the parts of your house that are being used for business related purposes. Get in touch with an experienced remodeling contractor to know more about such tax-deductible home improvements.
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