Home improvements are a sound investment for many reasons. They can increase the value of your home and make it more enjoyable to live in. However, what you may not know is that you can receive tax breaks for certain kinds of home improvements as well. Below is a list of some of the home improvements that are deductible on your US income taxes.
1. Home Improvements for the Disabled
One common income tax deduction for home improvements is designed to benefit those with disabilities and special needs. For example, if you have a family member who uses a wheel chair, spending money to install a wheel chair ramp to your front door can be used as a tax deduction. You may even be able to deduct the cost of installing a hot tub if it is used as part of a family member’s physical therapy.
2. Solar Panels
Energy costs can certainly eat up a household’s budget every year. Using traditional energy choices to power your home can also add to your carbon footprint that inadvertently harms the environment. One choice you should consider that is tax deductible is installing solar panels on your roof. As long as it stays sunny outside, you can offset your energy costs. The tax deduction will also help make purchasing and installing the panels much more cost effective.
3. New Windows
Installing new windows in your home is another home improvement expense that can be used to obtain a deduction on your income taxes. Installing new windows can make your home more energy efficient. This is due to the fact that old windows tend to leak a lot of air. This could mean spending more on heating during the winter and more on air conditioning during the summer. Just make sure to choose windows designed to improve energy efficiency by stopping as much air leakage as possible. Windows dealers like Polar Seal Windows and others can help you determine what windows will be best for reducing the energy usage in your home or building.
Purchasing new insulation for your house can be similarly deducted from your income taxes. More efficient insulation of course stops heat from escaping your home. This can reduce energy bills during the winter.
There are also many other kinds of home improvements that are tax deductible. Using such a deduction can help lower the cost of performing a home improvement. You are also likely to benefit from an increase in the value of your home as well as the improvement in quality of life provided by that improvement.