Repairs and certain home improvements will always take a certain amount out of your pockets. However, there are certain projects that will help get you a tax deduction. Find out which repairs and improvements offer tax advantages.
If you have already reached the point wherein your house is badly needing a repair or if you are looking to improve the overall look and feel of your home, you need to familiarize yourself with projects that may lead to tax breaks.
As previously discussed here on Realty Today, one must carefully weigh the pros and cons when choosing to make home improvements or repairs. If the costs of making the improvements can help boost the house value, then by all means, go ahead with the projects.
If, for example, the costs of remodeling the master bath, do not offer a high return of investment and would instead outweigh the potential earnings out of selling your house, then it might be a better option to dismiss the project altogether.
However, if you have already considered these factors and you are still determined to make the necessary repairs and improvements at home, Trulia listed several ways in which such projects can offer you a tax advantage.
The tax advantage for a repair, which helps bring the house back to its original state, depend on its nature and timing. If the purpose of repairing the home is due to a disaster, then one can easily get a deduction under the casualty/loss rules.
As for home improvements, the tax deduction depends on the same factors. If the improvement is for medical purposes, such as the installation of a wheelchair ramp at home, then one can claim the cost as a medical expense.
Households, which are opting to live green by installing solar panels or solar water heaters, may also qualify for the energy tax credit, which was recently extended till 2016.