Get the Most Out of Your Home Improvement Tax Breaks

Tax time is dwindling to a close, and whether that leaves you with a sense of relief or a sense of panic, it’s still important to ensure that you’ve taken everything into consideration. If you made any home improvements during 2016, you are most likely eligible for a few decent tax breaks that can make April 14 a bit less painful. This guide will help to lay claim to whatever Uncle Sam is offering.

If You Improved Your Energy Efficiency…

The government is happy to incentivize homeowners to make their properties greener, which is why adding solar panels, installing a small residential wind turbine, using a solar water heater, and improving your insulation will all earn you tax credits. In some cases, like the insulation, your tax credit is $500 or 10 percent of the cost, whichever is lower. Others are more generous; installing a residential wind turbine earns you a tax credit equal to 30 percent of the cost, as does using residential fuel cells.

If You Improved For Medical Purposes…

If you, your spouse, or one of your dependents is in a wheelchair or has another disability that requires making adjustments to your home, they could be tax deductible. Just be sure to itemize the changes that you make. If they add up to more than 10 percent of your adjusted gross annual income, then they can be written off in your taxes. It’s even possible for citizens over the age of 65 to deduct all of their medical expenses that exceed 7.5 percent of their adjusted gross income. Take advantage of these benefits!

If You Took Out a Home Improvement Loan…

Property taxes are usually tax deductible, and home improvement loans follow the same rules. Interest on your home improvement loan can be fully deductible up to a cap of $100,000. The same applies to a home equity line of credit for most homeowners.

Making home improvements in any capacity is a job that should only be trusted to the experts in your community. For all of your projects in the future, PG Builders in Tampa Bay offers complete building services and will help you transform your home into the final product you envision. Call today at (813) 253-000 to learn more, and don’t forget to write it all off in your taxes next year!