The Brad Stoner Painting Blog

The Brad Stoner Painting Blog

The Brad Stoner Painting blog is your San Diego Painting information destination for everything to do with painting; house painting, commercial painting, interior, exterior, picking the right contractor, the latest painting trends and much, much more.

Very last minute home improvement deduction tax tips

Brad Stoner - Tuesday, April 17, 2012

Spring signifies the start of both the income tax submitting season and home improvement time, but proximity on the calendar isn’t the only point the two have in common. 

 

This blog post is either just in time or really early for following year's tax season.  I believe some of you could either use this now or file it away for the following year.  You can never have too much good information.

 

Certain home improvements can reduce your tax bill, or produce a bigger refund to help finance other home projects. Below are some examples, but a word of caution: If you believe you meet the criteria for any of these benefits, be sure to talk with your tax advisor prior to filing your return.

 

Residential energy credit. The cost of putting in particular energy-preserving items in your main home – including energy-efficient home windows and skylights, exterior doors, insulation systems, a furnace, or hot water heater — may meet the requirements for a special tax credit. Improvements necessary for  

 

Medical care. If you itemize, you may be ready to take a deduction for improvements to your household that are made for health-related causes – widening doorways, adding handrails, sometimes even putting in a swimming pool or spa if the main objective is health-related.

 

Lead-based paint removal. The cost of eliminating lead-based paint in the course of upgrading or repainting may be tax-deductible. Points paid for a home improvement loan. You can deduct the cost of points paid on a loan to improve your main home. The deduction can be taken immediately or spread out over the time period of the loan.

 

Capital improvements. Improvements that raise the value of house, lengthen its useful life, or adapt it to a different use (building an addition, converting a basement to a recreation room, or even re-wiring a home, for example) raise the “basis” of the property and can save on taxes at the time of sale.

 

Home office deductions. Assuming that you operate a business out of your home, direct expenses for things done to the home office such as interior painting, paneling, or carpeting are fully deductible. You may even be able to deduct a part of the expense for home improvements that improve your entire home, such as exterior painting or installing a new roof.

 

Rental property. If you make improvements to apartment property that you own, you can recover the price of the expense over the course of time through depreciation. Easy fixes (including such projects as repainting or fixing broken plaster) can typically be taken right away as deductions against rental income.

 

As you can see, there are many associations between your home improvements and your tax liability, so don’t forget about these projects when you file your taxes. Keep careful information, share them with your tax preparer, and get all the tax relief that you should have!



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