You're probably not getting all of your tax deductions, which means you could be leaving a lot of money on the table. It doesn't matter if it's a small business or just your home office—the IRS is looking for deductions everywhere! That's why we're here to help answer the question, "what home improvements are tax-deductible in 2022?" For starters, any home improvement that increases the value of your home is going to be deductible. This could include adding an addition, finishing a basement, or even just painting the interior or exterior of your home. If you're planning on making any home improvements shortly, it's important to know which ones will qualify for a deduction and how much you can deduct. Here are some of the most common home improvement deductions: Energy-Efficient RenovationsIf you make any energy-efficient improvements to your home, you may be eligible for a tax credit. This includes adding insulation, installing solar panels, or upgrading your windows. Homeowners can get a tax break for making their homes more energy-efficient. The government provides tax credits or dollar-for-dollar reductions in taxes owed, depending on what type of renovation it is and how much was spent throughout the tax year. A 2020 return will allow homeowners to take advantage either way by claiming this incentive which gives them 10% worth against qualified improvements like insulation installation. Medical Care ImprovementsIf you make any improvements to your home for medical care, they may be tax-deductible. These medical expenses include installing a wheelchair ramp or widening doorways for wheelchair access. You can also deduct the cost of any modifications you make to your home to accommodate a disability. This could include adding ramps, modifying bathrooms, or widening doorways. Pro-Tip: Keep all receipts and documentation for any medical home improvements you make, as you'll need to provide this to the IRS if you want to take advantage of this deduction. Home OfficeÂWith the recent pandemic, many people have also been improving their homes to create a home office. If you've made any changes to your home to create a dedicated workspace, you may be able to deduct the cost of those improvements. This could include painting, adding shelves, or buying new furniture. As long as the changes are made specifically to create a home office, they should be deductible. Any repair or maintenance costs associated with your home office are also tax-deductible. This could include things like fixing a leaky roof or repairing a broken window. Rental Property ImprovementsIf you own a rental property, any improvements to the parcel may be tax-deductible. This could include things like painting, making repairs, or upgrading appliances. You can also deduct the cost of any changes you make to the property for your tenants' benefit. This could include adding a new playground or installing security cameras. As a general rule, any improvements you make to a rental property that increases the property's value are tax-deductible. Resale ValueÂThe most important thing to remember when it comes to home improvements and taxes is that any modifications you make should increase the resale value of your home. This is the key to getting the most tax deduction possible. So, if you're planning on making any home improvements in the near future, make sure they will increase the resale value of your home. This way, you'll be able to get the most deduction possible when it comes time to file your taxes. Most common resale-focused improvement deductions:
Architectural AdditionsIf you're planning on making any major changes to your home, such as adding an addition, you may be able to deduct the cost of those changes. This includes adding a room, finishing a basement, or building a deck. Here are a few other examples of deductible architectural additions:
ConclusionÂIn short, any home improvement that increases the value of your home or that makes it more energy-efficient is likely to be tax-deductible and you can save money. This includes adding insulation, installing new windows, and upgrading your HVAC system. However, it's always best to speak to a tax expert before making any major changes to your home to ensure that you're getting the most bang for your buck in this tax season. AuthorDavid is the lead content editor at RVA Paving Pros, a service for Richmond VA residents. In his spare time, David likes to travel, read about business and visit the finest italian restaurants in town!
0 Comments
Leave a Reply. |
Want a Custom & Free Quote from Our Experts?Grab a No Obligation Consultation with Our Richmond VA Pros
|