Are you interested in getting money back from the IRS for making improvements on your home? It is possible. The tax benefits of home improvement can add up to hundreds of dollars, depending on what you install. Many of the IRS home improvement tax deductions have to do with making your home more energy efficient. Not only will you save money on your taxes, but you will also save money on future energy bills. Not everything you do to your home will result in tax credit. Here are some improvements you can make that would result in money back.
First, solar power energy credits are something you can receive. If you get solar energy systems installed, you can get up to thirty percent of the cost of your renovations back. Other solar items, like solar water heaters, can also count.
One easy way to improve your home and save money on your taxes is replacing old doors and windows with energy efficient models. This usually applies to exterior windows and doors, as well as skylights. This credit cannot be used for new construction, but applies to pre existing ownerships. You can get up to, again, thirty percent of the cost, with a maximum credit back of fifteen hundred dollars.
Better insulation can qualify for home improvement tax deduction. Any sort of quality insulation can count, from blow in or sprayed fibers to window caulking designed to seal against air cracks.
Roofing is an obvious and common source of home improvement tax deductions. When you get roofing that is energy efficient, you can qualify for the rebate. Roofing material that decreases roof temperature and therefore heat absorbed through the ceilings of your home places less strain on air conditioning units and the overall electrical grid.
Other energy efficient products eligible for rebates are water heaters, heat pumps, furnaces, main air circulating fans, and hot water boilers.
In order to qualify for these home improvement tax deductions, you need to be making these repairs and improvements on your main home, not a rental home, vacation property or second home. It is recommended that you consult with a knowledgeable tax representative before making renovations for the purpose of home improvement tax deductions, in order to make sure the updates you are doing and materials you are using qualify.