Ah, tax season is upon us. As you begin to fill out those tax returns, you might be wondering: can I deduct my home renovations from my taxes? Short answer: it’s complicated.
Home renovation tax credits only apply to certain types of renovations and it depends on the result, plus how you plan to use the property post-renovation. In general, you can’t deduct the expense of home improvement if it’s your personal residence—however, some home improvement tax deductions are available for specific renovation or specific circumstances. Read on to learn more.
Please keep in mind, If you use your home purely as your personal residence, you cannot deduct the cost of home improvements—although you should consult your accountant and realtor about tax credits you can receive on home improvements if you decide to sell. General improvements to the home in which you currently reside are typically considered nondeductible personal expenses. If you rent part of your home or use it in part as a home office, you might be able to deduct a portion of the costs—consult with an accountant for the best course of action.
However, this doesn't mean that home improvements do not have a tax benefit. Home improvement tax deductions can be made available for things such as making your home more energy-efficient or adding on solar panels. Again, we suggest consulting with your accountant.
Whether you’re looking into tax deduction from your year-end filing or looking to save when it’s time to sell, make sure you’re keeping track of what you’ve done. Keep records of any improvements made to your property that add value or prolong its useful life—sadly, repairs don’t count! Some renovations to keep track of include:
Not sure if a home renovation counts? Give us a call at 970-515-2264 to learn more about the home renovations we can do, and how we’ve helped past clients understand how home renovations and taxes collide—then call your accountant for advice on your specific case.
Looking for a quality home renovation contractor near Boulder, CO? At H3 Construction and Design, our team is always happy to walk you through considerations for any home improvement project. Tough questions are our speciality—and we can sit down with you and provide consultation for any home renovation project you are considering.
Want to start a home addition or home remodeling project in Northern Colorado? H3 Construction and Design is one of the most trusted home addition contractors in the Boulder area—call us today at 970-515-2264 or contact us online.
Located in Loveland, CO, we also serve homeowners throughout Fort Collins, Ault, Greeley, Denver, Windsor, Boulder, Longmont, and the surrounding communities in Northern Colorado.
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