It’s tax day! Not a favorite for many, so I thought I would help brighten the day with some tips and tricks on how to use your remodeling and renovation dollars as tax deductibles. Maybe adding crown molding and baseboard by them selves won't qualify, but keep good records because small projects can add up to increase your home value, something you will want to keep in mind when selling your home (it will help lower your capital gains tax). Here are 5 things you should know:
1. Energy Saving home appliances may qualify. To see how to apply click here.
2. Owners or designers of new or existing commercial buildings can apply for a tax deduction of up to $1.80 per square foot if they saved 50% in heating and cooling
3. Casualty losses such as acts of nature, vandalism, accidents and fires, and theft could qualify (and that goes for business property, investment property, not just personal property).
4. If the renovation you did have increased the value of your home substantially, then those home improvements might help you avoid capital gains tax. The type of things that will count are adding physical space such as a room, garage, deck, paved driveway, built-in pool, gazebo or porch, adapting your home for disabilities, bringing your home up to code by redoing the electrical and plumbing,
5. Working from home can qualify your home for a tax deduction as can working more than 50 miles from you job, as moving expenses can be considered deductible.
Disclaimer: always talk to your tax professional and check with the IRS.