When you’re looking to purchase a new home or are simply making improvements to inside your current home, installing a new roof may be a good investment. When you take advantage of the tax breaks available to homeowners who make home improvements, you will save money in taxes when you build a new roofing on your home.
The process of a new Roof Installation in Cudahy can be difficult and demanding. It is essential to hire a professional in order to have a flawless new Roof Installation in Cudahy! SoCal Green will help you with Roof Installation in Cudahys and maintenance needs.
ENERGY STAR certified asphalt and metal roofs
ENERGY STAR certified metal and asphalt roofs can be tax-deductible payments. Roofing materials that are in compliance with Energy Star standards may qualify for a federal 10 percent tax rebate on expense of replacement. For example, if your roofing materials cost you $3500 and you qualify for 300 dollars in tax credit, bringing the cost of your investment to $3150.
In order for the tax credit credit to be credited for, you must have installed your new roof during the tax year. Additionally, you need to provide a Manufacturer Certification Statement along with your IRS Form 5695.
Roofs made of asphalt and metal which are Energy Star certified and have coated with pigments can qualify for a tax credit. These products lower temperatures on the roof’s surface, thus reducing energy costs.
These roofing materials reflect more sun’s rays, reducing the demand for cooling by as much as 15 percent. They also cut down on the amount of air conditioning needed in buildings.
The ENERGY STAR roof materials that are certified by ENERGY STAR are independently tested and certified to help you save money. They also lower the temperature of the roof by as much as 100 degrees Fahrenheit. This reduces heat coming into the home.
Reflective roofs reduce roof temperature and increase comfort of your home
Using a reflective roof to improve the temperature of your house is a way to improve the comfort of your home, reduce energy costs and lower the carbon footprint of your home. But if you’re looking for the best method of going about it, you’ll have to ask yourself which of the many types of reflective roofs are best for you.
The choice of the best material is crucial in determining the ultimate cool roof. Thankfully, there are many options available including concrete and clay tiles to asphalt shingles. There are several coatings that can add reflective properties to your roof. If you’re searching for an extremely reflective roofing, then a low-sloped, shingled roof is your first choice.
The primary thing to keep in mind when choosing an attractive roofing is to make sure it’s made of materials that are good for the environment. If you’re planning to install the roof of your dreams take a look at products like roof tiles that are insulated or cool roofing materials.
Home office improvements can be tax-deductible
In spite of the name the term “home office” can actually be anywhere in your house. A dedicated area within the basement an area in the living room, or even the kitchen table could be considered.
A standard deduction for home offices is available to taxpayers who qualify. This deduction is based on the proportion of square footage that 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 around 30 percent of your home as an office it is possible to deduct approximately 30% of the cost of enhancing the office.
The IRS has recently introduced an easier home office expense deduction that allows you to claim a deduction of $1,500 to your office at home. The deduction isn’t as strict than the standard deduction and you don’t have to assemble meticulous records to be able to claim it.
The most important thing to remember when taking the home office deduction is that you must be self-employed. In the majority of cases, it’s not available to employees. If you’re an independent plumber or accountant, however you may be able to claim the expense.
Capital gains are realized when you sell a house
Those who sell a home can enjoy the capital gains tax exemption of $250,000 for a single filer or $500,000 for a married couple. The amount of the gain is determined by the price you sold the home for and your cost basis. The basis of your home is the initial purchase price of the home which includes sales costs. If you make any improvements in the house, like building a new roof and finishing your basement, you can increase the basis of your adjusted cost that will reduce your capital gain when you decide to sell your house.
As an example, Miles purchases a home for $380,000, then spends $10,000 on a kitchen remodel after which he spends $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 then removes his adjusted cost basis of the selling price. He doesn’t have to pay capital gains taxes because the cost basis has been decreased to $250,000.
To qualify for the capital gains exemption, your home must be principal residence during two of the past five years. You may also qualify to receive a portion of the exemption if your house has been used for a substantial period of time with a goal different from your primary residence.