| Any improvements you make to your home could be | | | | therefore be eligible for tax benefits. For example, if |
| eligible for tax deductions. It is a good rule of thumb | | | | you have an area that is being remodeled and you |
| to always try to do your home improvements when | | | | come across leaks in the roof, then you can claim |
| the interest rates are low. This way, it saves you a | | | | the entire project as a home improvement. Just keep |
| lot of money in the long run. Keep in mind though, | | | | in mind that there is a fine line and you should |
| that only home improvements and not home repair is | | | | probably consult with your tax preparer to make |
| eligible for the tax deduction. In order to not confuse | | | | sure that what you have done is considered a home |
| the two, it is important to know what the difference | | | | improvement. |
| is between home improvements and home repairs. | | | | A few thing to keep in mind when using your home |
| Here are just some of the things that are considered | | | | improvements for tax deductions: For tax purposes, |
| capitol expenses and fall into the home | | | | some people refinance to do home improvements |
| improvements category: | | | | because the points are tax deductible. If the project |
| -Remodeling the kitchen | | | | is for home improvement, the points are deductible in |
| -adding a wing to your house | | | | the same tax year. If the project is not for home |
| -a new room installing | | | | improvements projects, the points are deducted |
| -new insulation and upgrading the heating or air | | | | over the life of the loan. If a portion of the money is |
| condition systems | | | | for home improvement, then that portion is |
| -adding a fence or a pool | | | | deductible in the same tax year; the remainder of |
| Just correcting a problem or fixing something that is | | | | the money is deducted over the life of the loan. |
| broken does not add value to your home. This is just | | | | Improving your home will add value. It is also |
| a fix to keep your home from losing value; therefore | | | | important to note of the extra money you can save |
| it makes the work ineligible for tax benefits. Some | | | | by knowing what can and cannot be eligible for tax |
| examples of home repair are as follows: | | | | deductions. |
| -Fixing a broken window | | | | C.J.Gannon is a Retired Residential General Contractor |
| -replacing holes in a walls | | | | and now writes for several construction companies |
| -replacing carpeting | | | | to educate buyers on the construction process so |
| There are some examples of when a home repair is | | | | that consumers can make decisions with confidence |
| considered to be a home improvement and can | | | | about their Home Improvement Projects. |