6 Tax Deductible Home Improvement: Solar, Appliances, Windows, AC
As a new homeowner finding any way to cut expenses is a must and save on tax-deductible appliances is crucial. In the first few years of being a homeowner, most families spend most of their savings and the majority of their incomes go to home expenses, property fees, and of course the mortgage. Being a first-time homeowner has its perks and proud moments but it could also take a toll on your savings account, so finding any kind of way to save some cash is a blessing.
New homeowners realize that the mortgage is not the only thing they have to pay every month pretty quickly. Homeowners are realizing that if they do a few upgrades and changes they could save money on their taxes, big money.
1. Solar Panels
Solar panels are nothing new they’ve been around for a few years but more and more homeowners are turning to solar power to save money on the electricity bills and it could be written off on your taxes for the tax credit. For instance, the Residential Energy Efficiency Property Credit offers credit for the installation of solar panels and other energy technology.
2. New Windows, Doors, and Wall Installation
As a homeowner you have many benefits this is one of them. The Nonbusiness Energy Property Tax Credit act of 2009, in the United States, provides homeowners a nonrefundable personal tax credit for federal income tax purposes. This tax credit has some requirements so make sure you read the requirements from the IRS. Freddy Conner, a homeowner in Temecula says,
“When I heard of this tax credit I went ahead and upgraded my windows and doors. It not only saves me money it also keeps my home cool in the summer and warm in the winter”
If your money isn’t tied up on your family, you should definitely go for the upgrade.
3. Roof Replacement
This one is a bit of a leap because replacing an entire roof of a house is not cheap. Replacing a roof is one of the most expensive things next to replacing or repairing the foundation of a house but if its time to replace your roof you will be eligible for The Nonbusiness Energy Property Tax Credit act of 2009 just like installing new windows and doors as long as it reduces heat. The best way to go when it comes to this is to go to a professional tax preparer. The IRS also has its requirements on this one.
4. Air Conditioning and Water Heating Systems
Just like replacing your roof, windows, and doors, this one is under The Nonbusiness Energy Property Tax Credit act of 2009. The IRS gives you a tax break many tax efficiency upgrades. This one of the most complicated upgrades when it comes to claiming it to the IRS, so make sure to hire a professional tax preparer.
5. Energy Star Efficiency Appliances
This one is one of the most popular tax reductions since the majority of the homeowners get new appliances when they first move to their new home. But, unfortunately, this one is very limited when it comes to Energy Star appliances but many Energy Star comes with rebates.
Contact your local utility office for more information on this one. Energy Star suggests looking up what appliances qualify for these rebates before buying. Sarah Quartz a new homeowner from Venice, California says;
“Buying Energy-Star appliances helped me save money on rebates and taxes. To make things better these appliances are usually more reliable. The majority of the popular retailers carry Energy-Star appliances.”
6. Water Saving Fixtures
Water-saving fixtures save you money and it also reduces the amount of water you use. States like California that are in severe drought suggest that homeowners use water-saving toilets, fixtures, boilers, and sprinklers.