Whether you are purchasing a new home or are simply making improvements to an interior area of your existing home, putting up a new roof may be a wise investment. When you take advantage of tax-free incentives to homeowners who make home improvements and home improvements, you can save money on your taxes while you build a new roofing on your home.
A new Roof Installation in El Monte can be stressful and challenging. You’d need a professional in order to get the perfect new Roof Installation in El Monte! SoCal Green can assist you with your roof maintenance and installations.
ENERGY STAR certified metal and asphalt roofs
ENERGY STAR certified metal and asphalt roofs can be eligible for tax-deductible payments. Roofing materials that are in compliance with Energy Star standards may qualify for a 10 percent federal tax rebate on cost of replacement. For instance, if roofing materials cost $3500 and you qualify for 300 dollars in tax credit, bringing the investment to $3,150.
For the tax credit to be applied for, you must have installed your new roof during your tax-year. Also, you must provide a Manufacturer Certification Statement along with the IRS Form 5695.
Roofs made of asphalt and metal that are Energy Star certified and have coated with pigments can qualify to receive a tax credit. The coatings lower the temperature of the roof surface, thereby cutting down on the energy cost.
They also reflect more sun’s rays and reduce the amount of cooling needed at peak times by up to 15 percent. They also decrease the amount of cooling required for buildings.
The ENERGY STAR roof materials that are certified by ENERGY STAR are independently tested and certified to save you money. They also reduce the temperature of your roof by up to 100 degrees Fahrenheit. This reduces the heat that enters your home.
Reflective roofs lower the temperature of your roof and improve the living space and comfort
Utilizing a reflective roof to raise the temperature of your home is one way to increase comfort, decrease energy expenses and lower your carbon footprint. If you’re seeking the best way to go about this, you’ll need to ask yourself what kind of reflective roofs is best for you.
Choosing the right material is a critical factor when it comes to deciding on the ideal cool roof. Thankfully, there are many options available, from clay and concrete tile to asphalt roofing. There are also several coatings that can provide reflective properties to your roof. If you’re looking for one of the best reflective roofs, a low sloped shingled roof is your first choice.
The primary thing to keep in mind when deciding on the right cool roof is to ensure it’s made from an material that is environmentally friendly. If you’re planning to install the roof of your dreams, look into products like insulation roofing tiles or cool roofing products.
Office improvements to your home can be tax-deductible
Contrary to what it sounds like, a home office can actually be anyplace in your home. A designated space in the basement, a corner of the living room, or even a kitchen table can qualify.
A standard deduction for home offices is available to taxpayers who qualify. This deduction is based on the amount of square footage that your home is actually used as an office at home. It could also be a part of the cost of making changes to your home. For instance, if you are using around 30% of your house for office use, you can deduct about 30% of the cost of upgrading it.
The IRS recently announced the simplified home office deduction that lets you claim a deduction of $1500 for your home office. The deduction isn’t as strict as the standard deduction and you do not need to create meticulous documents to be able to claim it.
The most important thing to consider when you are taking the deduction for home office is that you must be self-employed. Most of the time it’s not available to employees. If you’re a self-employed plumber , or accountant, though it’s possible to claim the expense.
Capital gains when you decide to sell the house
If you sell your home, you can enjoy an exemption from tax on capital gains of $250,000 for a single-filer or $500,000 for a married couple. The amount of gains is determined by price you paid for the property and the cost basis. The basis of your home is the initial purchase price of the home that includes sales expenses. If you are able to make improvements to the property, like the installation of a new roof, or finishing the basement, you can raise your adjusted cost basis that will reduce your capital gain when you sell your home.
For instance, Miles purchases a home for $380,000, spends $10,000 on kitchen remodeling, and then spends another $10,000 on a bedroom addition. The home is purchased with an adjusted cost basis of $350,000. If Miles decides to sell the home, he subtracts the adjusted cost basis from the sale price. He is not required to pay capital gains taxes since the cost basis has been decreased to $250,000.
In order to be eligible for the capital gains exclusion Your home must be the primary home for two of the past five years. You could also be eligible for a portion of the exclusion if the home has been extensively used over a long period of time for a purpose other than as your principal residence.