Don't Forget Home Improvements at Tax Time!
Certain types of home improvements can lower your tax bill, or produce a bigger refund to help finance other home projects. Below are some examples, but a word of caution: Old Village Master Painters can help you bring out long lasting beauty in your fine home, but we're not tax experts - be sure to consult with your tax advisor regarding any of these deductions!
Early spring marks the start of both the income tax filing season and home improvement time, but proximity on the calendar isn’t the only thing the two have in common.
Some content from the
Lead-based Paint Removal
The cost of removing lead-based paint in the course of remodeling or repainting may be tax-deductible. Old Village Master Painters is EPA Certified for Lead Paint Removal.
Home Office Deductions
Assuming that you run a business out of your home, direct expenses for things done to the home office such as interior painting, paneling, or carpeting are fully deductible. You may even be able to deduct a portion of the expense for home improvements that benefit your entire home, such as exterior painting or installing a new roof.
Improvements that increase the value of property, lengthen its useful life, or adapt it to a different use (building an addition, converting a basement to a recreation room - a great paint job - or even re-wiring a home, for example) increase the “basis” of the property and can save on taxes at the time of sale.
Points Paid for a Home Improvement Loan
You can deduct the cost of points paid on a loan to improve your main home. The deduction can be taken immediately or spread out over the term of the loan.
Residential Energy Credit
The cost of installing certain energy-saving items in your main home – including energy-efficient windows and skylights, exterior doors, insulation systems, a furnace, or hot water heater — may qualify you for a special tax credit.
Improvements needed for Medical Care
If you itemize, you may be able to take a deduction for improvements to your home that are made for medical reasons – widening doorways, adding handrails, sometimes even installing a spa or swimming pool if the main purpose is medical.
If you make improvements to rental property that you own, you can recover the cost of the expense over the course of time through depreciation. Simple repairs (including such projects as repainting or fixing broken plaster) can usually be taken immediately as deductions against rental income.
Historic Preservation Tax Credit (HPTC)
The Pennsylvania Historic Preservation Tax Credit program will offer a 25 percent tax credit for the rehabilitation of qualified income producing buildings that are also using an federal tax credit. The legislation aims to stimulate redevelopment and help revitalize communities that have an abundance of historical properties. There is also the Rehabilitation Tax Credit at the federal level.
Old Village Master Painters, Ltd
Our reputation for providing outstanding service and superior value to our clients ~ the Old Village Touch ~ is very important to us and we strive to enhance it with every home we are invited into.
We cater to fine homes and would love the opportunity to cater to yours...
Ed and Hutter Stulb