Your Home Improvements May Be Tax-friendly!

Whether you made renovations to your home in 2016 or you have plans for a remodel this year, it’s important to know the tax breaks you could be eligible for once your home is complete.

Tax Refund, Please!

Home renovations can be stressful. But after they’re complete, they’re usually worth it. And receiving a tax break for them is just icing on the cake.

Just like interest on a home mortgage loan is tax-deductible, so is the interest on a home equity loan used for improvements—up to $100,000.

You can also receive a credit if the renovations you completed make your home more energy-efficient. Equipment and renovations that help improve energy efficiency within a home include:

• Air source heat pumps
• Central air conditioning
• Insulation
• Roof
• Non-solar water heater
• Solar water heater
• Windows and skylights
• Wind turbines

Remember, the aforementioned energy-efficient changes must meet very specific requirements. Therefore, it’s important to talk to a tax advisor about them to ensure your plans will save you money in the long run.

Medical home improvements can also be considered for a tax deduction. By installing railings and lifts, as well as adding handrails and moving electrical outlets, you are technically spending on medical expenses. Therefore, be sure to keep a list of these items and costs, too.

Are you looking to make some home renovations this year? Come by our office this week to learn about our personal loan options.