The IRS tax code is a labyrinth out of which no one can escape without a guide. We are that guide. Many homeowners are unaware that they’re entitled to various tax credits associated with home improvements. This can be exciting news for homeowners, who realize they can put money in their pocket while simultaneously increasing the value of their house. Below are a few tax credits every homeowner should know about—this is by no means an extensive list of tax credits associated with home improvement.
Energy Efficient Improvements
It should be no surprised that the IRS offers tax credits to homeowners taking steps to conserve the environment. If you have installed energy efficient exterior windows, energy efficient air conditioning systems, insulation, or any other improvement of the like, then you can write off thirty percent of the cost associated with energy efficient improvements. Unfortunately, there is a maximum credit of $1,500 dollars but this only applies to energy efficient improvements. Improvements involving alternative energy options can filed for an additional $ 1,500 dollars in tax credit.
Examples of alternative energy improvement include solar panels, wind turbines, solar heaters, geothermal heat pumps, and other equipment of the like. Homeowners who purchased any alternative energy equipment are entitled to 30 percent of the cost associated with alternative energy with a ceiling of $ 1,500 dollars in tax credit.
The every changing landscape of the IRS tax code is one of the many reasons a professional ought to be consulted when dealing with taxes. Tax breaks associated with home improvement change from year to year, and we at Kathleen M Egan CPA are committed to keeping up with every single change. If you have made any improvements to your house this year, chances are you’re entitled to some sort of tax credit from the IRS. Get in touch with us today to see what we can do for you.