When most people make improvements to their homes, they’re
doing it because they want a nicer, more comfortable home. In some cases,
though, their home improvements end up benefiting not just them, but others as
well. When that’s the case, these homeowners often qualify for some awesome
deductions that can help them to save money and offset the costs of some of
those improvements. Read on to learn about some great home improvements that could just earn you a tax break.
Improved Energy Efficiency
If you’ve recently done something or are considering doing
something to increase the energy efficiency of your home, you should know that
the government approves While making your home more energy efficient can help
your wallet, it can also help the environment, and the government likes to
reward those who try and reduce their carbon footprints.
While there are many different tax credits related to energy
efficiency, one of the best is the Residential Energy Efficiency Property
Credit, which will give you a discount for installing solar panels, wind
technology, geothermal units, or fuel-cell technology.
Check to see if your home improvement plans qualify, and, if
so, make sure you take advantage of this great deduction.
New Water Heaters
Another home improvement that could earn you a tax credit is
installing a new water heater. If that water heater is considered more energy
efficient than your last model and/or meets certain other standards, there’s a
good chance you’ll qualify.
Check with an accountant or with the appliance manufacturer
to be sure, but definitely make use of this credit if you’re eligible; it’s
worth it!
A New Roof
Finally, if you put a new and improved roof over your head,
you’ll probably qualify for the Nonbusiness Energy Property Credit. In general,
if the roof you install is designed to reduce a home’s heat gain, it’s good to
go in terms of the credit.
As is the case with all of these credits, however, make sure
you double-check before you file for the credit to avoid potential trouble or disappointment.
As long as you’re careful, though, you can get some great home improvements and
some great tax credits; talk about a winning combination!