Once again, it’s time to think about taxes and tax deductions. As such it’s important to know what home improvements are tax-deductible. The first thing to do is to classify if your project is a repair or an improvement. Artistic Design Build Inc, your trusted custom home builders, attests that you take note of things to avoid unnecessary expenses.
The IRS defines a repair as a modification restoring a home to its original state or value. On this note, repairs are only tax-deductible for home offices and rental properties. In contrast, any modification increasing the value of your home is an improvement. They are tax-deductible, but only in the year that you sell your home.
To be sure if a repair or improvement is tax-deductible, consult a local CPA. Here are a few helpful hints to keep in mind.
Energy-Efficient Improvements
Only improvements for solar energy qualify for tax credits for the 2018 tax season. Wind, geothermal, and fuel cell improvements are only good through tax year 2017. The solar credit will remain until 2019, being then reduced every year through 2021.
New solar energy systems can still result in a 30% deduction of the total cost of installation. Solar panels, solar water heaters, and small wind turbines are tax-deductible energy-efficient improvements. Your custom kitchen remodel expert, Artistic Design Build Inc, supplies these energy-efficient additions.
Medical Care Improvements
Medical care improvements may earn full deductions, with your doctor’s certification. You can include the cost of installing medical equipment in your home. They should provide care for you or any household member. They are deductible expenses since they don’t add value to the home.
They include entrance and exit ramps, widening hallways and doorways, and lowering cabinets. Also included are lifts, support bars, and handrails. Fire alarms, smoke detectors, and other warning systems also qualify. Your home specialist can make your medical care ready.
Whether you’re looking for simple design bathroom ideas or you’re looking to get some tax relief, you’ve come to the right place. Artistic Design Build Inc believes everyone should have a place they can be proud to call their own. Our designers and home improvement contractors serve Bethesda, MD and other nearby areas. Call us today at (301) 969-3037 to learn about our services.