We don’t mean to strike terror into your heart but…TAX SEASON IS HERE.
Hopefully, you’ve been saving your receipts and paperwork so TurboTax will be a breeze this year.
While looking over your finances, maybe you find yourself contemplating what kinds of home renovations you should undertake in the coming fiscal year. If you want to get money back on taxes, these are the home improvements and repairs to put on your list.
Build or Renovate Your Home Office
Want to save on your taxes? Building a home office or repairing the one you have could earn you a tax credit. In fact, any part of the home you improve for work could qualify for some money back—so make sure you keep track of new insulation, light bulbs, computer equipment, shelving, or anything else you add to your home office. Working from home seems like a pretty good idea, right?
Make Your Home More Energy-Efficient
Installing certain energy-efficient windows, doors, insulation, and roofing materials could mean getting a tax credit for 10% of their cost! Not only that, there are certain heat pumps, central air conditioning systems, water heaters, stoves, boilers, and furnaces that qualify for money back on your taxes. Even if you installed them as far back as 2006, you can still get that money if you haven’t claimed them yet.
If you’re interested in installing tax-friendly appliances that are also energy efficient, be sure to tell your contractor during the planning process. Of course, these repairs won’t just earn you money come tax season; they’ll save you cash all year round by slashing your energy usage.
Remodel with New Furniture
Furniture such as entertainment centers, bedroom sets, and other expensive items can qualify for money back. Just keep tabs on the sales tax, because homeowners who itemize can usually deduct either that or your state income tax—whichever is larger. In other words, if you use an accountant to do your taxes, be sure to tell them if you remodeled your living room with new furniture!
