Whether you are purchasing the first home of yours or simply renovating inside your current home, installing an entirely new roof could be a wise investment. When you take advantage of tax incentives for home improvements, you will save money in taxes when you install a new roof to your home.
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ENERGY STAR certified asphalt and metal roofs
ENERGY STAR certified roofing materials like asphalt and metal are eligible for tax deductible payments. Roof materials that meet Energy Star standards may qualify for a federal 10 percent tax credit on the expense of replacement. If, for instance, your roofing materials cost you $3500 and you qualify for 300 dollars in tax credit, bringing your investment to $3,150.
For the tax credit to be credited, you must install your new roof during the tax year. You must also include an Authorized Manufacturer Certification Statement along with an IRS Form 5695.
Roofs made of asphalt and metal which are Energy Star certified and have coated with pigments can qualify for tax credits. These coatings reduce temperatures on the roof surface, thereby cutting down on the energy cost.
These roofing materials also reflect more sun’s rays, reducing the demand for cooling by up to 15 percent. They also cut down on the amount of air conditioning required for buildings.
Energy STAR roof materials that are certified by ENERGY STAR have been independently tested and certified to help you save money. They also reduce the temperature of the roof by as much as 100 degrees Fahrenheit, which reduces heat coming into the home.
Reflective roofs can reduce the temperature of the roof and enhance the comfort of your home
Utilizing a reflective roof to raise the temperature of your home is a way to improve the comfort of your home, reduce energy costs and reduce your carbon footprint. However, if you’re trying to figure out the most efficient method to go with it, you’ll need to ask yourself which of the many types of reflective roofs is best for you.
The choice of the best material is an important factor in determining the ultimate cool roof. Luckily, there are many options available, from clay and concrete tiles to asphalt shingles. There are also a variety of coatings that enhance the reflective qualities of your roof. If you’re searching for the most reflective roof, a low-sloped shingled roof should be your first choice.
The primary thing to keep in mind when deciding on an attractive roofing is to make sure it’s made of an material that is environmentally friendly. If you’re thinking of installing an entirely new roof consider products such as insulation roofing tiles or cool roofing products.
Home office improvements can be tax-deductible
In spite of the name, a home office could be located anyplace in your home. A designated space within the basement an area in the living room or an island table may qualify.
A home office deduction of the standard type is available for taxpayers who meet the criteria. This deduction is based on the proportion of square footage that your house actually functions as your home office. It could also be a part of the cost of making improvements to your home. For example, if you are using about 30% of your house as a workplace, you can deduct about 30percent of the cost of enhancing the space.
The IRS recently announced an easier home office expense deduction, which allows you to claim a $1,500 deduction for your home office. It is not as rigorous as the standard deduction and you don’t need to create meticulous documents in order to claim it.
The most important thing to consider when taking the deduction for home office is that you need to be self-employed. Most of the time the deduction is not accessible to employees. If you’re a self-employed plumber , or accountant, however, you might be able to claim the cost.
Capital gains when you sell the house
Homeowners who sell their homes can enjoy a capital gains tax exclusion of $250,000 for a single-filer or $500,000 for a married couple. The amount of gain is determined by the price you paid for the property and the cost basis. The basis for your property is the cost of purchase for the property, including sales expenses. If you make improvements to the property, such as installing a new roof or finishing the basement, you can raise your adjusted cost basis that will reduce the capital gain that you receive when you sell your home.
As an example, Miles purchases a home for $380,000. He then spends $10,000 on a kitchen remodel, and then spends another $10,000 on an addition to the bedroom. The house is bought with an adjusted cost basis of $300,000. If Miles decides to sell the home He removes his adjusted cost basis of the sale price. He does not owe capital gains tax because the cost basis has been decreased to $250,000.
To be eligible to be exempt from capital gains Your home must be the primary home for at least two in the last five years. You may also qualify for a portion of the exemption if your house has been utilized for a significant period of time with a goal other than as your principal residence.