How To Get A Tax Break On Your Home Remodeling
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It’s always a big discussion among many homeowners who are trying to figure out which tax deduction you’ll be able to get when you’re making improvements to your home. This topic even baffles tax experts at times being that the laws change so often, therefore trying to scramble to see which tax deductions still exist as well as new ones that may have come to be can be quite the task. Basically, if you want to do improvements to your home it should be for the fact that it’s going to increase its value and make your life more enjoyable, not because you might get some sort of tax break. More often than not, your tax advisor will be able to find some sort of deduction regardless, so don’t make that your first priority.
For the most part, there aren’t deductions for you to take advantage of. However, this doesn’t mean that you can’t benefit from a home improvement down the line. Improving your home will probably increase the value of your home so that when you sell it, you’ll have more equity invested into it, and you’ll make more. So, even though there aren’t home improvement tax deductions for you to take advantage of, it nearly always works in your favor.
Don’t be discouraged however because there are times when a deduction can be made. One situation maybe when you need to remodel or improve your home for medical purposes. For example, if someone in your home becomes disabled and you need to make an addition for a new bathroom, a new staircase, a bigger bedroom, or an assortment of other reasons, you might be able to obtain a home improvement deduction.
Since these are basically medical expenses, the improvement falls under the medical expense deduction qualification. Here’s basically how it works (right now, but things change rapidly), if you pay out more than 7% of your income for medical-related costs, you then are eligible to get a tax deduction for them. It certainly wouldn’t be hard to spend more than 7% of your income to qualify for these home improvement deductions. One thing to remember however is that although your medical needs may qualify you for tax deductions, don’t just assume that your home improvement deductions will also qualify
When you need to do remodeling or make enhancements to your home for business reasons, this is another time when you may qualify for the deduction. For instance, when you need to put an addition on the house, add another bathroom, or any sort of thing that adds to the functionality of your business, you may then qualify for home improvement deduction as it relates to your business.
Any time you operate a business from your home, you can deduct business expenses, and so remodeling shouldn’t be any different. However, again, while home improvements for business purposes might qualify for deductions, you shouldn’t assume that they would while in the process of remodeling. Never assume, always verify, and you should be fine!
f you would like a quote for your next remodel, call Surface Designers.
