When you’re looking to purchase a new home or are simply making improvements to inside your current home, putting up the roof of your choice could be a good investment. When you make use of the tax breaks available for home improvements, you will save money on your taxes while you build a new roofing to your house.
An new Roof Installation in Placentia can be stressful and challenging. It is essential to hire a professional in order to have a flawless new Roof Installation in Placentia! SoCal Green can provide you with your roofing maintenance and installation needs.
ENERGY STAR certified asphalt and metal roofs
ENERGY STAR certified roofing materials like asphalt and metal can be tax-deductible payments. Materials for roofing that meet Energy Star standards may qualify for a federal 10 percent tax credit on the expense of replacement. For instance, if roofing materials cost $3,500 and you qualify for a $300 credit, reducing your investment to $3,150.
For the tax credit to be applied for, you must have installed your new roof within this tax period. Additionally, you need to include a Manufacturer Certification Statement with an IRS Form 5695.
Metal and asphalt roofs that are Energy Star certified and have coated with pigments can qualify for tax credits. These coatings reduce the temperature on the roof surface, thereby cutting down on energy consumption.
They also reflect more sun’s rays, reducing the demand for cooling by up to 15 percent. They also reduce the amount of cooling needed in buildings.
Energy STAR roof materials that are certified by ENERGY STAR have been independently tested and certified to save you money. They also lower the temperature of your roof by up to 100 degrees Fahrenheit, which reduces heat entering the home.
Reflective roofs can reduce the temperature of the roof and improve the comfort in your home.
Utilizing a reflective roof to improve the temperature of your home is one way to increase comfort, cut down on energy bills and decrease the carbon footprint. But if you’re looking for the most efficient method to go with it, you’ll need to ask yourself what type of reflective roofs are best for you.
Choosing the right material is a critical factor in determining the ultimate cool roof. There are a variety of options that range from concrete and clay tile to asphalt roofing. There are also several coatings that can add reflective properties to your roof. If you’re in search of an extremely reflective roofing, then a low-sloped shingled roof is your first option.
The primary thing to keep in mind when selecting the right cool roof is to ensure it’s made from an material that is good for the environment. If you’re thinking of installing an entirely new roof consider products such as insulated roofing tiles or cool roofing materials.
Home office improvements are tax deductible
Despite the name the term “home office” can actually be anywhere in your house. A dedicated area in the basement, a corner in the living room, or even an island table may qualify.
A standard deduction for home offices is available for taxpayers who qualify. This deduction is based on the percentage of the square footage of your home actually serves as an office at home. It can also include the cost of making changes to your house. For instance, if you use about 30% of your house as a workplace You can deduct around 70% of cost of upgrading it.
The IRS has recently introduced an easier home office expense deduction, which allows you to claim a deduction of $1,500 to your office at home. It is not as rigorous than the standard deduction and you don’t need to assemble meticulous records to be able to claim it.
Most important to consider when you are taking the deduction for your home office is that you have to be self-employed. In the majority of cases, it’s not available to employees. If you’re a self-employed plumber , or accountant,, you might be able to claim the cost.
Capital gains are realized when you sell a house
If you sell your home, you are entitled to the capital gains tax exemption of $250,000 for single filers or $500,000 for married couples. The amount of gains is determined by price you sold the home for and the cost basis. Your basis is the original purchase price of the house which includes sales costs. If you make any improvements to the property, for example, building a new roof or finishing the basement you could increase the basis of your adjusted cost that will reduce the capital gain that you receive when you sell your home.
For instance, Miles purchases a home for $380,000, then spends $10,000 on kitchen remodeling after which he spends $10,000 on a bedroom addition. The home is purchased with an adjusted cost basis of $300,000. If Miles decides to sell the house then subtracts the adjusted cost basis from the selling price. He does not owe capital gains tax because the cost basis has been decreased to $250,000.
In order to be eligible for the capital gains exemption Your home must have been principal residence during at least two out of the last five years. You may also be eligible for a part of the exclusion if the home has been utilized for a significant period of time for a purpose that was not your primary residence.