| The approach of spring often encourages | | | | loans. |
| homeowners to start considering home | | | | If you are planning a home improvement to an area |
| improvements and repairs. However, before you | | | | of your home that is in need of repair you may be |
| start getting out the hammer and nails or hiring a | | | | able to include the repair as an improvement. The |
| contractor consider if your home improvements may | | | | Tax Act states that where a repair is carried out in |
| be eligible for a home improvement tax deduction. | | | | the same area of the home that is being remodeled |
| The first thing the homeowner must understand is | | | | then the repair can be included as part of the |
| the difference between a home improvement and a | | | | improvement project. So, if you are planning on |
| home repair. Simply put, a home repair is classified as | | | | remodeling your kitchen dont forget to take care of |
| fixing a problem. For example, repairing a hole in the | | | | the leaking pipes at the same time and claim the |
| roof, fixing a leak or repainting a room would be | | | | entire project as a deduction. |
| considered repairs. On the other hand, remodeling a | | | | Tax Credits vs Tax Deduction |
| kitchen, adding a couple of rooms, building a garage | | | | Tax credits can also provide significant savings to the |
| or installing a swimming pool would be classed as | | | | homeowner. Whilst a tax deduction for home |
| improvements. These improvements add to the living | | | | improvement can reduce the amount of income on |
| amenity of the homes owners and usually add value | | | | which tax ist payable, a tax credit directly reduces |
| to the home. | | | | the tax itself. Tax credits are available for many |
| The Internal Revenue Service sets out strict | | | | types of home improvements. For example, installing |
| guidelines on how a homeowner can claim a home | | | | insulation, adding energy-efficient windows, and some |
| improvement tax deduction. It is strongly | | | | types of highly efficient equipment for cooling and |
| recommended that before you hire a contractor or | | | | heating, and solar water heating may all qualify for |
| start any home improvement works that you obtain | | | | tax credits. |
| advice from you tax consultant or from the local | | | | The IRS has many helpful publications to assist |
| office of the IRS | | | | homeowners who are about to embark on home |
| Tax deductions for home improvements can fall into | | | | improvements so a visit to their website or calling |
| any of several different categories. A medical | | | | into a branch office will usually provide the |
| condition that required providing disabled access to | | | | homeowner with a wealth of information. |
| home would normally be classed as a home | | | | And when you begin your home improvements |
| improvement. | | | | remember to maintain accurate records of spending |
| There is a special home improvement tax deduction | | | | and save all receipts this will assist you enormously |
| for victims of Hurricane Katrina. Consult with the IRS | | | | when the time comes to claim your home |
| regarding the Katrina Emergency Tax Relief Act as it | | | | improvement tax deduction. |
| increases the permitted qualifying home improvement | | | | |