Money Matters: Some home improvements offer tax breaks

March 10, 2017 01:30

Sponsored by NEFE

Did you make improvements to your home in the past year? You could be eligible for tax breaks when you file this year. For example, you may already know that property taxes, mortgage interest and home equity loan interest are usually deductible, but did you know the interest on home improvement loans up to $100,000 can be deducted as well? Capital improvements like replacing a roof, windows, doors, gutters or even heating/air conditioning systems also count. And if you make updates to improve energy efficiency, more tax breaks are available.

As Marketwatch lays out, you can get tax credits for all sorts of energy improvements, such as central air conditioning, heat pump systems, hot water heaters, furnaces, insulation, wind turbines and more. In addition to federal tax credits, state or local tax benefits may also be available for these kinds of improvements. Check with your state's revenue department for specifics. If you make improvements to accommodate a family member in a wheelchair or with a disability, those costs can be itemized and deducted if they meet a minimum threshold of 7.5 percent of your adjusted gross income.

To help your readers/listeners/viewers learn more about how they can maximize their deductions and credits for home improvements, consult a tax professional in your area. They can get into the specifics of which kinds of improvements are eligible, and what dollar amounts or percentages are involved when calculating tax breaks. They can also talk about whether it makes more sense to do several improvements at once or to spread them out over time to gain the best tax advantages.

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