Are Home Improvements Tax Deductible?
Home improvements such as repainting, remodeling, or doing repairs that maintain your home in good repair are not tax deductible. However, home improvements made because of a medical necessity as well as improvements for energy efficiency are tax deductible. Hopefully, the information in this article will answer the question: Are home improvements tax deductible?
There are criteria for these improvements that must be met in order to determine if your home improvements are tax deductible. For example, the first criterion you must meet is that your deductions will have to exceed your earnings by 7.5%. Some of us know how quickly home improvements can add up especially for serious medical situations.
Here are some qualifying home improvements for medical tax deductions:
- Wheel chair ramps
- Bathroom railings
- Elevators
- Lowering light switches
Energy efficient home improvements that qualify for tax deductions:
- Energy efficient windows
- Improved insulation
- Solar powered water heater
How much can I expect to receive for my home improvements?
If you have purchased any of the qualifying improvements you may be eligible to receive a tax credit for 30% percent of the cost up to $1,500.00. The cost of the qualifying improvement only pertains to the cost of the item; you cannot include the cost of labor to install the improvement.
The deadline for the energy efficient tax credit is December 31, 2010.
There are online services such as TurboTax with tax professionals available 24 hours a day, 7 days a week. When preparing your tax return, TurboTax will search for every tax deduction you may qualify for. They have the most up-to-date information from the IRS. They can help determine whether your home improvements are tax deductible. TurboTax guarantees your return to be 100% accurate, which reduces your risk of being audited by the IRS.
For more information on home improvement tax deductions, visit TurboTax Online. TurboTax will also answer all your tax-related questions.
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