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Taxes are confusing enough as it is so it’s understandable if you’re quite perplexed this tax season. Fear not, however, because we’re here to highlight the top tax myths that might trap even the smartest ones among us.
Oberg Roofing & Remodeling, your roof replacement experts, discusses these myths in detail.
You Can Deduct All Your Home Renovations
Home improvements are generally not tax-deductible, unless the property is for rent. However, there are a few exceptions that homeowners can take advantage of. Modifications for medical purposes that don’t increase property value are tax-deductible. These include railings or support bars, ramps, wider doorways, and stair lifts. Your doctor must confirm the necessity for such modifications for you to claim deductions. Plus, those expenses must exceed 7.5% of your adjusted gross income.
You can also deduct renovations made to sell your home. You can report home improvements made within 90 days of closing as selling costs. Consult roofing companies, such as Oberg Roofing & Remodeling Inc., about which home renovations are tax-deductible.
All Home Equity Interest Is Deductible
Many homeowners turn to a home equity loan or line of credit (HELOC) to make home improvements. The interest on these loans was tax-deductible in the past—but not anymore! It is deductible only if the loan is for a large home improvement project. Remember also that your deductible mortgage and home equity debt must be less than the $750,000 cap.
Taking Too Many Tax Credits on Environmentally Friendly Improvements
You can take a 10% tax credit (up to $500) for eligible “green” improvements in 2016. These include installing energy-efficient windows and doors. Remember, however, that this is a lifetime credit. So if you already claimed up to $500, you cannot claim any further. We recommend talking to a CPA about tax credit claims.
Oberg Roofing & Remodeling Inc. is not only a steel roofs contractor. You can also see us for advice on tax-deductible home improvements. We are here to serve you in St Cloud, MN and other nearby areas. Call us at (320) 204-2303 for a consultation.