Spring into Savings: How Home Renovations Can Save You Money on Taxes

Spring is in the air, and for many homeowners, that means renovation season! But before you dive headfirst into that dream kitchen remodel, consider the potential tax benefits some home improvements can offer.  That's right, some spring cleaning projects can translate to tax savings come April.

As your small business tax accountant, we're here to break down the nitty-gritty of what qualifies and what doesn't.

Generally, repairs and maintenance are not tax-deductible.  Patching a leaky roof or replacing a broken window? Those are essential upkeep, not improvements. However, there are exceptions!

Medical Modifications: Widening doorways, installing grab bars, or lowering cabinets for accessibility can be tax-deductible medical expenses if they exceed 7.5% of your Adjusted Gross Income (AGI).

Home Office Upgrades: Running a business from home? If you dedicate a specific space for your work, certain improvements to that area, like built-in shelves or improved lighting, may be deductible based on the percentage of your home used for business.

Energy Efficiency Champions: Upgrading your insulation, windows, or HVAC system for better energy efficiency can qualify for tax credits. These credits can significantly reduce your tax burden.

Remember, tax laws can be complex.  While this blog post provides a general overview, it's crucial to consult with your tax professional to determine which deductions apply to your specific situation. 

Here's how tax planning can help:

• Reviewing receipts and invoices from your renovation projects.
• Calculating potential deductions and credits based on your tax situation.
• Ensuring you claim all the deductions you're entitled to.

Spring cleaning doesn't just mean sprucing up your home; it can also mean cleaning up your tax bill! So, contact us today to discuss your renovation plans and see how they can benefit you come tax season. Remember, a little planning now can lead to big savings later!