Whether you are purchasing a new home or are simply renovating inside your existing home, putting up a new roof may be a smart investment. If you can take advantage of tax incentives for home improvements that will help you save on taxes as you build a new roofing to your house.
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ENERGY STAR certified roofs made of asphalt and metal
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. If, for instance, your roofing materials cost $3,500 then you could receive 300 dollars in tax credit, bringing the cost of your investment to $3150.
To qualify for the tax credit to be credited to your roof, you must put up the new roof by the end of the tax year. Additionally, you need to submit an Authorized Manufacturer Certification Statement with your IRS Form 5695.
Asphalt and metal roofs which are Energy Star certified and have coated with pigments can qualify for tax credits. These products lower the temperature on the roof surface, thereby decreasing energy costs.
These roofing materials also reflect more sun’s rays, which reduces the demand for cooling by up to 15 percent. They also cut down on the amount of cooling needed in buildings.
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 as much as 100 degrees Fahrenheit, reducing heat coming into the home.
Reflective roofs can reduce the temperature of the roof and improve the living space and comfort
Utilizing a reflective roof to increase the temperature of your house is one method to increase comfort, decrease energy expenses and reduce the carbon footprint. But if you’re looking for the most efficient method to go about it, you’ll have to decide what kind of reflective roofs is right for you.
Selecting the appropriate material is a critical factor in determining the ultimate cool roof. Luckily, there are plenty of choices that range from concrete and clay tiles , to asphalt roof shingles. There are several coatings that can 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 option.
The most important thing to consider when choosing the right cool roof is to ensure that it’s constructed from materials that are sustainable for the earth. If you’re thinking of installing an entirely new roof take a look at products like insulated roofing tiles or cool roofing materials.
Office improvements to your home can be tax-deductible
Despite the name it can actually be anywhere in your house. An area that is dedicated within the basement a corner in the living room or the kitchen table could be considered.
A standard home office deduction is available for taxpayers who meet the criteria. The deduction is based on the amount of your home actually serves as an office at home. It could also be a part of the cost of making improvements to your house. For instance, if, for example, you utilize approximately 30 percent of your home as an office, you can deduct about 70% of expense of upgrading the office.
The IRS has recently introduced an easier home office expense deduction that allows you to claim a deduction of $1500 to your office at home. The deduction isn’t as strict than the standard deduction and you don’t need to assemble meticulous records to claim it.
The most important thing to remember when you’re taking the deduction for home office is that you have to be self-employed. Most of the time the deduction is not accessible to employees. If you’re an independent plumber or accountant, though you may be able to claim the expense.
Capital gains when you sell the house
Homeowners who sell their homes are entitled to the capital gains tax exemption of $250,000 for a single filer or $500,000 for married couples. The amount of the gain is determined by the amount you offered to sell the home and your cost basis. The basis for your property is the purchase price of the house, including sales expenses. If you make improvements in the house, such as the installation of a new roof, and finishing your basement, you can raise your adjusted cost basis, which will lower the capital gain you earn 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 home then removes his adjusted cost basis of the sale price. He doesn’t have to pay capital gains taxes since the cost basis is now decreased to $250,000.
In order to be eligible for the capital gains exclusion, your home must have been principal residence during at least two in the last five years. You may also be eligible for a part of the exclusion if your home has been utilized for a significant period of time for a purpose other than as your primary residence.