Most of us are in the midst of filing our taxes. This is a great time to think of ways of putting those tax returns to the best use. How better to use that money than on home improvements that could result in tax deductions for next year?
Not all home improvements are considered tax deductions, though. Our tax advisor has advised that we should be looking for things that add value to your home, increase the life of your home, or provides a new use for your home. Things like painting a room or replacing your air filters would likely not qualify because these are considered routine maintenance on the home.
So what does qualify for a tax deduction? Think green and energy efficient and you will do well this year! Some ways to spend that tax refund this year might include:
•· Updating or replacing your insulation
•· Energy efficient doors or windows
•· Replacing your air conditioning or heating unit with a more energy-efficient one
•· Replacing your tank water heater with a tank-less or non-solar unit
•· Installing solar panels
Also, as a way of saving energy, which will save you money each month, consider switching some of your home's outdated appliances with more energy efficient appliances. We participate with Duke Power and they recently offered a free mailing of 12 LED light bulbs to their account holders. These bulbs are said to last for years and use much less energy than traditional light bulbs. We also make it a habit to look for the Energy Star label on appliances that we replace in our home, like microwaves, televisions, dishwashers, or washing machines. These changes in appliances can result in monthly utility bill savings, helping both you and the environment.
As your refund checks from the federal and state arrive, consider giving your home the savings this year, which will result in additional tax deductions next year and energy savings throughout this year.
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