How to Recoup Some of Your Home’s Expenses on Your Tax Return
If you’re considering a home renovation, you may be wondering if you can write off some – or possibly even all – of the costs on your tax return. The short answer here is no…but that doesn’t mean that you still can’t find ways to recoup at least some of these expenses.
For instance, depending on the type of work you have done, you may be able to keep more of your money in your own pocket, instead of handing it over to Uncle Sam. As an example, if you’re making various energy efficient upgrades, a tax credit could be available to you.
This one-time credit allows you to write off 26% of the cost of any solar, geothermal, wind or fuel cell technology that you are adding to your home, provided that these items are in place by the end of 2020. (If you have not yet filed your 2019 tax return, this credit is 30%). And this tax credit doesn’t just include the cost of the product(s), but also the labor and installation expense.
If you work from home – and due to the Coronavirus outbreak in early 2020, many people do – you could be allowed to deduct the cost of improvements that are made to a home office, provided that the space is used exclusively for business purposes.
By being creative, you may also be able to deduct a portion of the cost of other items in your home, too. For example, if you use 10% of your home as your office, and you install a new air conditioner for your home, you could deduct 10% of the expense.
Give Us A Call
Because everyone’s situation is different, it is recommended that you run any of these possible tax deductions by a tax professional before you file your tax return. If you’re planning a home renovation, though, we can help.
At LP Design and Renovation, our primary focus is on ensuring that your home functions and looks exactly the way you want it to, based on your specific needs and tastes. So, contact us today for a free consultation. We can be reached at (407) 901-6215, or via our secure online contact form at https://lpinspiredrenovations.com/contact/.
10 Tax Deductions for Home Improvements. https://money.howstuffworks.com/personal-finance/personal-income-taxes/10-tax-deductions-for-home-improvements.htm