Highly Recommended Home Improvement Projects

Did you know that there tax-deductible home improvement projects? If you’re interested in knowing what these are, read on. It is essential to know about these things if you are thinking of remodeling your home. You never know but that recent renovation you had may just give you a tax discount this year. 

 

But first thing’s first, are all home improvement projects taxdeductible? The simple answer is yes. But there’s a more complicated answer to that question. It depends on what type of venture you’re trying to complete and whether it is considered as a home repair project versus a home improvement project. So, did you just repair your home or did you actually improve it? That’s one way to determine if the venture is taxdeductible or not. 

Home Repair versus Home Improvement  

A repair is a modification to your home that restores it to its original condition or value. Good examples of a home repair work are broken window and door replacement, leaking faucet repair, carpet replacement, and roof reinstallation. These home repairs aren’t tax-deductible, except it’s done in rental properties or home offices that you also own. 

A home improvement, on the other hand, is an enhancement that increases your home’s market value. Good examples of these changes are installing a driveway, upgrading your roof, insulating your attic, installing a septic system, and adding modern built-in appliances. Most other home improvements are tax-deductible, but they can only be claimed on the year that your house is sold. 

Best Home Improvement Projects 

If you’re wondering how you can possibly improve your home to maximize the taxdeductible value, then here is a list of the highly recommended home improvements. Be sure to consider each one the next time you’re planning to do a renovation.  

  1. Energy Efficiency Renovations

While several tax credits for energy-related improvements have disappeared in recent years, there are still some that you can take advantage of. For starters, you can install solar energy system in your home to qualify for the benefit. This means that it’s still a good idea to install solar panels, small wind turbines, and solar water heaters. 

  1. Medical Care Renovations

It can be difficult to achieve tax-deductible home renovations for medical care. But if you’re going to live in your home until your senior years, then you need to update it with help from a physician. If the primary aim of the renovation is to provide for your personal medical care or that your spouse or any dependent, then the installation of medical equipment and features in your home is tax-deductible. Good examples are building exit and entrance ramps, widening doorways and hallways, lowering kitchen cabinets, adding lifts, installing support bars, and modifying smoke detectors, fire alarms, and similar warning systems. 

  1. Home Office Renovations

Some home office renovations disappeared in the recent years but there are tax law updates seen as well. You can still file for a home office refurbishment taxdeductible. However, you can no longer extend your employees if they’re not working in your space. Self-employed individual and those running a home business may still file for related tax-deductible renovations. To know more about this, consult with a Niagara house renovation expert. They should give you a good idea ohow to proceed. 

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