There are millions of homeowners out there right now who would love nothing more than to renovate their current house to turn it into their dream home.
A new kitchen, an extra bathroom, a man cave to sit and enjoy the big games; there are endless ways to renovate to transform that house into something you truly love.
Of course, there’s one major obstacle that remains in the way for most people: Money! If only they could afford to do it, they would certainly contact a contractor like one found at UltimateRenovations.com and get started on their projects.
Did you know that a lot of the renovations you complete are actually tax-deductible? This means that you can either pay less on your taxes, or you could receive a huge rebate for your renovations.
Exterior renovations would fit this bill if you were wondering. Are there any other sorts of renovations that will allow you to take a deduction on your taxes? Let’s find out.
Types of Tax-Deductible Renovations
Anything “Green” Certified
The first big type of tax deduction for home renovations would be in the green area of living. Solar panels, energy-efficient appliances, and especially new windows will cut down on your energy consumption.
In fact, in some provinces and under some codes, the deductions and rebates you can get for something like a new set of energy-efficient windows may actually end up paying for the entire renovation. And, yes, windows count as both exterior and interior renovations.
People receiving care and long-term therapy in government centers severely tax the nation’s universal healthcare policies. If at all possible, they would much rather have you receiving care in the comfort of your own home.
This is why you can get a pretty good deduction or rebate if your renovations have anything to do with medical-use reasons.
Wheelchair ramps, kitchen layout renovations, expansions so your house can accommodate equipment, etc.: these are renovations that are all tax-deductible.
The government wants people who are gainfully employed and who are going to pay their taxes. This is why they’re more than willing to offer you some good deductions when you renovate your home for a home office or any other sort of business-related improvement.
Of course, you will have to show the actual proof that the improvements you made were for business-related purposes. But after you do that, you could be looking at a serious rebate or deduction.
The government is more than willing to incentivize people to have children and properly raising them. Whether their reasons are cynical or wholesome, the fact is that government wants future taxpayers in the system, though they want them to be law-abiding, adjusted adults.
Therefore, you can get some serious deductions through renovations that are meant to help you raise your own children, and especially to help care for other people’s children via daycare renovations.
Check with your local tax expert for exact numbers.
The idea of value-related home improvements is all about things that you’re going to do that add value to your home. Governments and tax systems take this value seriously, as it’s now your equity and part of what you’re worth.
So, things like additions to the home and lawn improvements, and even new HVAC systems, are all tax-deductible because they’re adding value. That also means that exterior renovations fall into this category.
A new roof, new siding, a new deck or porch, etc.; these are all renovations that are going to add to the value of the property and are thus tax-deductible.
The tax code can be a very tricky thing, so make sure you speak with an expert who definitely knows how to navigate this field.
The information above is accurate but also very brief and colloquial; it has nothing to do with filing taxes and specific amounts. Also, remember to hire the best contractor you can find when you want those renovations completed in your home.