When it comes to doing your taxes, figuring out which home improvements are tax deductible can seem like quite a tricky process. You want to make sure that you cover all your bases to minimize the amount you’re paying. While you may have thought about a lot of different home improvements that are tax deductible, you may not have thought of these.
Home improvements that substantially add to the value of your home can sometimes be difficult to write-off when it comes to your taxes. However, there are a few room additions to be aware of that can be tax deductible.
One of the main room additions you can write-off is the addition of a home office. If you convert another room into a home office or upgrade your current office by adding bookshelves, know that you can usually write-off that expense as a business expense.
When it comes to tax deductions for your roof, there are a couple of things to be aware of. For the next couple of years, you can get tax deductions for upgrading your home with more energy-efficient aspects. For most energy-efficient upgrades, by and large, you can expect to get some sort of tax deduction. And this is especially true of an upgrade like installing a new energy-efficient roof. While you're at it, you can add a solar system to your new roof to take advantage of the 26% federal tax credit that comes with it until the end of 2022.
Medically Related Renovations
In addition to adding more energy-efficient aspects to your home, you can generally get a tax deduction for renovations on your home that are made for medical purposes. If for example, you have to add a ramp next to your stairs, you can generally get a deduction for the materials and cost of installation.
You can only get reimbursed for medical expenses that weren’t compensated by insurance. Additionally, when you add on to your home, you can only get a partial deduction if the additions add value to your home.
Figuring out how to properly account for all your home improvement tax deductions can be difficult at first. There are so many different things to be aware of. Starting with this list can help you get moving towards getting your taxes done.