Like it or not, the tax filing season is upon us, and you may be surprised to learn that certain improvements made to your home could result in tax deductions.
Keep in mind that navigating the rules regarding tax-deductible home repairs can be a little tricky, so we strongly encourage you to consult with your financial adviser or tax preparer to make sure you get all the deductions for which you qualify.
Can I use my home improvements as tax write-offs?
Generally speaking, if your home is used strictly as your personal residence, improvements or add-ons like landscaping, wiring upgrades, room additions, plumbing upgrades, etc. cannot be claimed as tax deductions.
But there are still clever ways that certain renovations and improvements can help you out at tax time.
- Let your mortgage work for you.
This involves making the renovations at the time your home is purchased. Specifically, by taking out a mortgage with a bit extra to cover improvements to the home when you buy it, the interest on that extra amount can be deducted from your income as a feature of the mortgage interest deduction.
- Improvements or add-ons for medical reasons.
There are a host of medically necessary add-ons that can deductible. Among the renovations and add-ons that qualify are exit ramps, grab bars and railings, the lowering of cabinets, the widening of doors and hallways and modifications to bathrooms.
- Interest from certain home improvement loans.
There are some home equity lines of credit and 203k mortgages that will allow for a host of remodels and repairs to make your home livable. It’s the interest on these loans that may be tax deductible.
- Earn tax credits for being good with energy-efficiency.
There are a host of energy-wise home upgrades that could be in your favor come tax time. Most states have at least some tax credits for energy-efficient improvements; there’s a Database of State Incentives for Renewables and Efficiency that lists what each state has to offer. California, for example, offers over 250 such incentives.
For home repair, add-ons and improvements in San Diego, call J&M Keystone.
Whether you’ve got plans for general repairs, add-ons or complete redesigns, we offer complete residential full-service general contractor services.
We’re available 24 hours per day, so call us at 800-368-2757