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Three Little Known Home Improvement Income Tax Deductions ...

If you are a homeowner who pays yearly taxes in the United States then you might know that there are a multitude of costs that you can deduct from your gross income to reduce your taxed income and save money each year. Sure, you can often deduct the amount of interest you pay on your home loan or home equity loans, but there are also other home expenses and upgrades you can use to reduce your taxable income if you meet certain criteria.

Many house improvements and home upgrades can be used towards reducing your income if you meet some special requirements. Sometimes you need to run a business or serve customers in your home to be eligible for these credits, but there are other deductions you can use even if you don?t work out of your home. Some people have heard about the new energy efficiency tax credits, but you should consider some of the expenses of other different home improvement projects as well. The additions you make to your house may qualify for income tax deductions or credits depending upon the size of the project, the reason for the home upgrade and your complete income situation.

Tax deduction for lawn care ? You probably won?t be able to deduct the entire amount, but rather, you would have to deduct a portion of the cost in proportion to how much your business and home share the same space. This is just one of the many possible deductions you can use if you truly operate your business from your home. A while ago tax courts ruled that if you operate your own business and meet clients regularly at your house you may be able to deduct a portion of your landscaping bills as a business expense because it makes your business more likely to succeed.

Swimming pool tax deduction ? Tax rules state that in some cases a portion of the costs to put in a pool can be deducted from your taxes if there is a solid health-related reason to use a pool. In one case a gentleman with low lung capacity used a swimming pool to exercise and increase his breathing strength. Since he used the swimming pool more than his family he was allowed to deduct part of the costs as a medical expense. These deductions are essential to keep in mind if you are applying for a pool loan because they can change how much you should spend. Other medical devices for the house such as elevators for wheelchairs may also qualify for a deduction. You should also know that the Internal Revenue Service considers a swimming pool and a spa to be the same thing.

Tax credits for new doors ? Select Energy Star entry doors that meet certain energy efficiency criteria are eligible for a tax credit of up to 30% of the cost of the door with a maximum tax credit of $1,500. If you are going to install new doors this year, make sure they meet the minimum requirements for this tax deduction. Remember that the doors are eligible but the labor required to install them is not eligible.

To be sure that you are deducting everything you can, you will want to take copious notes, take plenty of photos and obviously keep all your receipts for every possible home improvement expense. If you?re planning on finishing some home upgrades this year, you should really investigate the possible tax deductions that might be available! Not all home improvements are eligible for tax deductions, but with a little research you can definitely save some money on your income taxes and upgrade your home at the same time. The rules for income tax deductions are always changing, so it may be helpful to speak with a qualified tax expert about your home improvements to find out of you are eligible for some of these special credits.

Those are just some of the possible ways your home improvement expenses can save you money on your income taxes. If you really want all the details, then be sure to read our full guide to home improvement expenses that are elegible for a tax credit.

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Source: http://nasdaqreportnews.com/2012/03/21/three-little-known-home-improvement-income-tax-deductions/

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