Have Your Forgotten These Home Tax Deductions
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.
A lot of people have heard about some of the new energy efficiency tax deductions, but you can also deduct some or all of the cost of various home improvements for other reasons. In some cases you must work out of your home and meet clients, but in other situations you don’t need to work out of your home or you can even be retired!
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.
Swimming Pool Tax Deduction – Tax courts have ruled that a portion of swimming pool expenses can be deducted from your taxes if there is a solid medical reason to have a pool. In one case a gentleman with low lung capacity used a swimming pool to exercise and increase his breathing strength. Since he used the pool more than his family he was allowed to deduct part of the cost as a medical expense.
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.
The rules for income taxes and tax deductions are always changing, so it might be beneficial to speak with a qualified tax professional about your home improvements to find out of you qualify for special deductions or credits. A little planning can save you a lot of money on your taxes.
These are just some of the many tax deductions for home remodeling projects that you may qualify for. There are actually lots of different home improvements you can use to lower your taxable income!
