As the year comes to a close and tax season approaches, it’s worth noting some common home renovation projects that could have tax implications. Please be aware that this information is for reference purposes only, and it’s crucial to consult with your tax professional to ensure a comprehensive understanding of the potential tax implications associated with your specific home renovation projects.
– Energy-efficient upgrades such as installing solar panels, energy-efficient windows, doors or certain heating and cooling systems may qualify for federal tax credits.
– Certain home renovations made for necessary medical reasons may be eligible for tax deductions. For example, installing ramps, widening doorways for wheelchair accessibility or adding support bars in bathrooms.
– If you use part of your home exclusively for business purposes, you may be eligible for a home office deduction. This could include renovations or improvements to the space used for business.
– If you own a historic property and make qualifying renovations to preserve its historical significance, you might be eligible for historic preservation tax credits.