Thinking about renovating? If so, it’s important for you to know that your home improvements are tax deductible, while (interestingly enough) your home repairs are not.
With that in mind, you might want to consider expanding a project, turning it into a ‘renovation’, rather than a simple ‘repair’…
Renovating a kitchen or bathroom, adding a room, putting in a patio, driveway, deck, hardwood or marble flooring, replacing a roof, installing a pool, adding a garage, installing new air conditioning … each would be considered “home renovation” – since each adds value and equity to your home.
I am not a tax accountant, so I suggest you consult with a tax specialist before jumping into a home renovation project. There’s a huge difference between home improvement and home repair… as each relate to tax benefits. Relying on a tax specialist for specific guidelines may help you get a lot more bang for your buck! Subtle distinctions between the two concepts (improvement versus repair)… make one project tax deductible… while they exclude another project. Renovating increases property value, adding to the equity you have in your home. There are a number of tax savings you can take advantage of in doing home improvements.
Home repairs are considered “maintenance” … preventing deterioration and therefore loss in property value. Replacing hardware or faucets, repairing cabinets, painting and pressure cleaning (to name a few) each fall under the category of “home repairs” … and while they do add a certain “value” to any property, they are regarded as maintenance issues … therefore not tax deductible. That being said, home repairs can (often) be included under the umbrella of various home renovation projects. Consider fixing a roof leak or plumbing problem at the same time you’re adding a room, renovating a kitchen or bath, or doing some other renovation…. And… If you are giving any thought to refinancing your loan, there are tax benefits , whether you are planning on using any of that money to pay for your renovations… or not… and your tax consultant can guide you on that as well.
Renovating? Considering moving? Need information…a tax consultant… a real estate attorney… or a professional real estate consultant? MiamiRealEstateCafe … Call us at 305-793-1365… The Restivo Team – EWM Realtors, Inc.