Home Improvement Projects that Could Help Your Taxes
FotoSCAPE

Home Improvement Projects that Could Help Your Taxes

Income tax is the worst, right? No one likes doing their taxes or paying them. Luckily, there are a few projects connected to your home that may reduce your tax obligation. So if you’ve been meaning to take care of a few things around the house, check to see if they’ll help your taxes, too. Be aware that tax law changes frequently, so consult with an expert to make sure you’re on the right track.

Swipe through to learn about ways to save on your taxes.

Energy Efficiency

Replacing your front door with one that meets certain Energy Star requirements can reduce your tax bill. Certain windows and skylights can also qualify for tax help, as will specific insulation and air sealing materials or systems.

New Home Systems

While general upkeep like replacing a couple of floor tiles does not help your tax obligation, major upgrades and replacements of whole-home systems may help you. Plumbing, septic, water or air filtration, HVAC systems, water heaters and security systems might qualify.

Adaptations for Medical Care

Medically necessary Improvements to your home might be tax deductible. For example, adding handrails, installing wheelchair ramps, modifying bathrooms, lowering cabinets or widening doors and hallways may provide tax deductions.

Appliances

There are a lot of caveats, but you may see tax savings related to purchasing energy-efficient appliances. Some washers and dryers as well as refrigerators may qualify.

Clean Energy

If you’ve considered installing a solar energy system, inquire about its tax benefits before making a decision. You might be able to claim a 26% tax credit on certain costs associated with purchasing and installing particular qualified solar equipment, fuel cells, or other covered renewable or alternative energy equipment. The company you hire to help design your system should be able to ensure you get maximum tax benefit.

Biomass Stove

If you heat your home or your home’s water supply with a wood-burning stove, consider upgrading to an energy-efficient model that has a thermal efficiency rating of at least 75% — work with an expert who can help you get everything right. You could claim a tax credit of up to 30% of the project’s cost.

Recommended For You.