Getting money back from the government is among the most satisfying of things for today’s homeowners. After all, getting slapped with higher and higher taxes each year means making money saving measures in all areas of our lives. But to offset this, the federal government has allowed for certain deductions to occur, particularly with respect to making home improvements that increase the energy efficiency of these spaces. So how can you tell whether you actually will qualify for a home improvement tax deduction on any project you currently are considering? Here are three ways to find out.
To gauge whether you qualify to receive a home improvement tax deduction, first contact your certified public accountant, or CPA. He or she should have some paperwork on this, at least to verify whether you do in fact qualify for home improvement deductions on your taxes. Most accountants today who have any sort of professional experience understand the laws and how they have changed, with particular reference to improving energy efficiency around the home. If your accountant has such information, have this person explain it to you thoroughly, ideally before undertaking any major home improvement. This way, you will know at the outset whether you foresee any reduction to your home improvement taxes.
To better comprehend whether a home improvement tax deduction is in your future, also visit government agencies’ websites. Some government agencies like the IRS and the country’s energy efficiency agencies have an explanation of limitations as to which home improvement deduction would qualify on your annual tax forms. These sites include articles that detail how specifically to go about qualifying for these deductions as well, so they serve as excellent resources in your research for the best possible home improvement tax deduction you can possibly make on your taxes.
Another way to fully understand which home improvement tax deduction will make the most impact on your taxes is to call a home improvement or interior design expert. Perhaps you know one already and can ask this professional questions about his or her own experiences handling these deductions. Even if no one you currently know handles these professional tasks, you could still ask around to learn whether any of your friends know who these people are. Then you would have a professional reference in a sense, letting you know how best to qualify and for which projects you would qualify too.