Tax Deductible Home Upgrades

Tax day is coming, and if you’re working on a home improvement project, you may be wondering if your upgrades are tax deductible. If your improvements meet the criteria set by the Internal Revenue Services, then you can benefit from a tax deduction.

In this post, your local remodeling expert, Handyman Connection© of Boise shares some tax deductible home improvements.

1. Energy-Efficient Upgrades

Tax deductible home improvements may include solar panels, solar water heaters and small wind turbines. However, most of the eligible upgrades can be credited, but not deducted within the current year. The amount of tax deduction changes annually, so it’s best to talk with a CPA before working on your renovation project.

2. Medical-Related Home Improvements

You can get tax deductions from medical-related home upgrades if they are supported by a certification from your doctor. Medical care home improvements may include building entrance or exit ramps, hallway widening, modifying kitchen cabinets, installing lifts, adding support bars in the bathroom and modifying warning systems.

3. Home Office Improvements

If you are self-employed, then your home office renovation may be eligible for a tax deduction if the upgrades are used for your business. Another good thing is that repairs for home offices are also tax deductible because they are essential for your business’ production.

4. Rental Property Upgrades

Generally, you can’t get tax deductions from repairs. However, if they are necessary for the upkeep of a rental property, they can be tax deductible. If you have properties for rent, renovations and repairs for them are considered tax deductible.

5. Improvements for Resale Value

Improvements that increase your home’s resale value include remodeling the attic, adding a new bathroom, installing a new furnace and building a swimming pool.

Consult a Tax Expert

If you’re still unsure whether your renovation project is deductible, it’s best to consult with a tax expert. However, when it comes to your remodeling needs, you can count on Handyman Connection of Boise. We are your leading provider of home upgrade services. Call us at (208) 268-0088, or complete our online request form for an estimate.