You may have heard that there are tax benefits of home improvement, but that may be all that you have heard. Most people can tell you that home improvement tax deductions are out there, but most cannot tell you what you can save or get back for making those home improvements. But that is why you are here. To read about these from an actually informed source. The following tax return buffers are all relating to energy efficient changes that you can make to your home. They fall into two different categories.
1. Get 10 Percent of the Cost Back, With a 500 Dollar Limit
Math wise, this means if you spend 5,000 dollars on a home improvement here, you can get 500 dollars back in your tax return. If you spend 3,000 dollars, you would get 300 dollars. Get it? Just take 10 percent of the costs per project to get your estimated return on that particular home improvement.
These jobs consist of things like adding extra insulation to the house. Some are more effective, and greener than others, so consider your options before buying anything. And do not forget to crunch the numbers! Replacing old windows and doors with new, energy efficient ones is a great way to qualify and to save a ton of money in energy bills as well. And an energy efficient air conditioning unit can make a huge difference in how much power you use for heating and cooling.
2. Get 30 percent of the Cost Back, With No Upper Limit
Math time. For the aforementioned 3,000 dollar project, you would be getting 900 dollars back. For the 5,000 dollar home improvement it is 1,500 dollars. And the sky is the limit! If one of the following projects costs 12,000 dollars, and some of them can, you would be getting 3,600 dollars back.
These projects can definitely get pricier, but the money back, and the long term savings and effect on the environment make it worth it. For instance, you can get geothermal heat pumps put in, and say goodbye to that hot water heater with the pilot light that uses natural gas. Or you can install solar panels and reduce your dependency on the grid by a significant percentage, depending on how many you get and the amount of sun your home sees. Finally, you can even get wind turbines installed. Those guys, coupled with the solar power, means you can be virtually self sufficient.
Before you commit to any of these, look at the numbers first. All of these can raise the value of your home for when you sell it, reduce your energy bills, and get you great tax breaks. But just be prepared for the initial costs, as they can be rather large in the beginning. But, for all of the good that can come of these home improvements, if you can swing it, they are worth considering.