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Smart homeowners know that some home fixes and improvements can lead to valuable tax deductions or credits.
In this blog, we’ll explore some of the deductible home fixes for 2023, allowing you to save money while improving your home.
Energy-Efficient Upgrades:
One of the most popular and rewarding ways to reduce your tax liability while enhancing your home’s energy efficiency is through energy-efficient upgrades. In 2023, these upgrades remain eligible for tax credits.
These can include improving insulation, upgrading windows and doors, and installing energy-efficient heating and cooling systems. These upgrades not only lower your energy bills but can also qualify for the Residential Energy Efficient Property Credit.
Solar Panel Installation:
Solar energy is a sustainable and cost-effective way to power your home, and it also comes with tax benefits. Installing solar panels on your property can make you eligible for the Solar Investment Tax Credit (ITC), which allows you to deduct a portion of the installation costs from your federal tax liability.
With the ITC, you can contribute to a greener future and save on taxes simultaneously.
Medical Home Improvements:
If you’re making home modifications due to medical needs or disabilities, certain expenses may be tax-deductible. These include expenses for wheelchair ramps, bathroom modifications, or other accessibility enhancements.
Keep detailed records of these expenditures, as they can potentially be claimed as a medical deduction.
Home Office Deductions:
With the rise of remote work, many homeowners are creating dedicated home offices. If you use a portion of your home exclusively for business purposes, you may qualify for the home office deduction.
This deduction allows you to claim a portion of your home-related expenses, such as mortgage interest, property taxes, and utilities, as a business expense. Be sure to consult a tax professional for detailed guidance.
Home Energy Audits:
Before diving into energy-efficient upgrades, consider getting a home energy audit. The cost of an energy audit can be tax-deductible, and it’s a valuable step in identifying the most cost-effective energy improvements for your home.
A home energy audit helps you make informed decisions about where to invest your money for maximum energy savings.
Property Tax Deductions:
Property taxes are a significant expense for homeowners, and the good news is that they are often deductible on your federal income taxes. Be sure to keep records of your property tax payments, and consult with a tax professional to understand the specific deductions available to you.
Disaster-Related Repairs:
In the unfortunate event of a natural disaster, the cost of repairing your home can be tax-deductible. Whether it’s repairing damage from a hurricane, flood, or wildfire, these expenses may be eligible for tax relief. Consult with a tax professional to navigate the specific requirements and claim the deductions you’re entitled to.
By taking advantage of deductible home fixes in 2023, you can not only improve your living space but also reduce your tax burden. Remember to keep thorough records of your expenses, consult with a tax professional for personalized advice, and stay informed about changes in tax laws that might affect your deductions.
Cassity Kmetzsch started Remodelaholic after graduating from Utah State University with a degree in Interior Design. Remodelaholic is the place to share her love for knocking out walls, and building everything back up again to not only add function but beauty to her home. Together with her husband Justin, they have remodeled 6 homes and are working on a seventh. She is a mother of four amazing girls. Making a house a home is her favorite hobby.
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