Tax home deductible office improvements

Under the right circumstances, homeowners can use the cost of home improvements or a home office to trim their tax bill. Homeowners who fail to follow IRS guidelines, however, may end up with a tax audit instead of a tax deduction. If the workspace takes up 8 percent of the square footage, for instance, the owner can claim 8 percent of utilities, property taxes and mortgage interest home office improvements tax deductible a deduction.

We got the scoop from Sarah Minton, Certified Public Accountant in San Diego, CA as well as a financial planner in Memphis, TN and learned about the following eight home tax deductions that may be available to you. For tax purposes, a home improvement includes any work done that substantially adds to the value of your home, increases its useful life, or adapts it to new uses. These include both tax deductions and tax credits for renovations and improvements made to your home either at the time of purchase or after.

One way to save on the costs of home renovation is to make the improvements to the home at the time it is purchased.If the mortgage you take out to buy a home includes additional money to make renovations, your acquisition cost for the home includes this amount. You can then deduct the interest on this amount from your income as part of your mortgage interest deduction. But if you keep track of those expenses, they may help you reduce your taxes in the year you sell your house.

A capital improvement is something that adds value to your home, proOn your personal residence, the answer is usually no, although you might qualify for certain kinds of energy-related home improvements. Make sure that any decorative item you deduct sta.

Home office improvements tax deductible

Tax home deductible office improvements