Have Your Forgotten These Home Tax Deductions

A lot of homeowners are living in one of their largest tax deductions without even knowing it. This is especially true of people who have upgraded their home or done some remodeling project recently. There are actually lots of different ways you can use home improvements for tax deductions.

The improvements you make to your home can be eligible for deductions or credits depending upon the size of the project, the reason for the home upgrade and the cost and time frame that was allotted to the remodeling or home improvement.

Lawn Care Tax Deduction - Yes, if you run a business out of your home and you meet clients then you may be able to deduct things like lawn care and landscaping costs as a business expense. You probably won’t be able to deduct the entire amount, but rather, you would have to deduct part of the cost in proportion to how much your business and home share the same space.

Tax Deduction for a Swimming Pool - If you require a swimming pool or spa for a medical condition then you may be able to deduct a portion of the cost from your taxes. You’ll want to document your medical history and pool costs in detail and you may need your doctor to write a letter stating your need.

Tax Credit 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’re going to install new doors this year, make sure they meet the minimum requirements for this tax credit.

In most cases you’ll have to itemize to take advantage of some of these deductions and some individual cases may need additional documentation outside the regular forms and figures. It’s always a good idea to take copious photos and keep as much information about each home improvement you perform on your house anyway, because those items may become necessary if you ever have a problem or wish to sell your house in the future.

The rules for income taxes and tax deductions are always changing, so it might be beneficial to speak with a qualified tax professional about your home improvements to find out of you qualify for special deductions or credits. A little planning can save you a lot of money on your taxes.

Still haven’t done your taxes? You can often save a bundle of money with just a few minutes of reading about your possible home improvement tax credits. You don’t need to hire home improvement contractors for these savings. Even if you’re a home improvement amateur, you can save lots of money by doing your own projects around your house.