According to home statistics, here are the top 10 home improvements that are tax deductible:
- New house fencing: Constructing a new fencing for your home can be a tax deductible. Tear down the old one and install a new one. Create a new image for your home just by improving the perimeter.
- A new garage for your car: Found out you need additional space after purchasing your new car? Yes you do. If you have a new car, it’s worth it to invest on such space. If you construct one, it can be made as a tax deductible.
- Adding a spare room: For whatever purpose it could be whether for a new baby, an old parent, a sibling, for an old parent, or maybe for an in home care provider. Adding a spare room to your house can increase the value of your house and increase its usage too.
- Install a swimming pool: Hire a contractor who specializes on installing swimming pools. Do you prefer a regular pool or maybe a saltwater pool? A swimming pool is a tax deductible and will certainly improve your house and give it more value.
- Kitchen remodeling: Give a gift your wife will love and cherish. Remodel her favorite place in the house. Add more space to it for new kitchen appliances. She will surely love and appreciate.
- Improving heating and air conditioning of the house: These improvements increase comfort standards in your home. If you were to sell your home, this home improvement is a plus a factor. Another good thing about it is it is a tax deductible.
- Fire proof your home: Improve the chances of your home from unpredictable hazards like fire. Replace your walls and your roofing with fire proof materials. Add insulators. Use paint that is non combustible. Hire a flame proofing expert. Ask for estimates.
- Hire someone to work on your landscaping: Beautify your house. Improve the image from the outside. Hire someone who could do fantastic landscaping. This will not only make your house presentable, you’ll feel good to. Now you have bragging rights.
- Add an additional driveway: Match your new garage by adding a driveway.
- Have a porch constructed: Browse home magazines. Houses look good with porches. Have one constructed around your home. It’s a great place to connect with family members.
There are numerous ways to improve your home and get tax deductions from it. Just remember this basic rule. Home improvement is different from home repair. Home repairs are not tax deductibles. Home improvements are tasks that require substantial amount of expenditures but will add value to your property and enhance the equity of your home. And home improvements are tax deductible. Here are some tips.
- Keep records: Organize your receipts paid in building materials used for your home improvements. Purchase an envelope and collect all related receipts.
- Know the IRS schedule: Know the important dates ahead of time so you can prepare the documents and supportive data.
- If you can’t do it, hire an accountant: Hire someone who can help you with the process.