Who does not like to find more deductions for their taxes? Unless you hate money, it is likely you fall into the category of people who would not mind a few extra tax deductions. If you are a home owner who has made improvements to their home and have recently sold your property, you could be eligible for home improvement taxes. According to HGTV, An owner can’t deduct home improvements from his income taxes, but you can write them off on capital gains tax when the house is sold.
Home improvements, but not repairs or maintenance, can be deducted from the gain on the house: If the owner bought it for $200,000, spent $50,000 on remodeling and sold it for $325,000 a year later, the taxable gain would be $75,000. Home improvement taxes are typically not well known among many people who do their own taxes, so if you feel you may be eligible, you may want to consider sitting down with a professional to determine if you are.
Have you remodeled a part of your home for business purposes? Your home office may have more benefits than convenience. A home improvement deduction can also be taken for individuals who have created a workspace for themselves at home. Aside from general home improvement tax deductions, homeowners are also eligible deducting home improvement taxes if they have renovated any part of their home to use as a home office. A homeowner can claim a home office deduction for the space in her house used for business, whether it’s for a literal office, a day care service, or even inventory storage.
Clearly, there are several advantages, aside from making your home more aesthetically pleasing, to renovating and going through home improvements. Your home office may be worth more than you think, as you may be eligible for home improvement deductions. If you are unsure about whether you are eligible for the tax benefits of home improvement, you can consult a professional for a straight forward answer about whether or not you are indeed eligible for home improvement taxes.
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