In the summer, many of us undertake home improvement projects, ranging from minor repairs to major remodels. Although all home improvements cost money, many do not improve the value of the home. Here are some ways to remodel your home while getting the most out of it, including some energy tax credits.
- Add space. Converting a storage attic into a bedroom, building an entertainment deck, or finishing off a musty basement is a smart way to add usable square footage to a home, increasing its livability and resale value. You can even add a second story, enlarge the garage, or create an extra bathroom for a busy household. With many families sharing space with other family members or roommates, having more bedrooms and living space is definitely a plus.
- Increase curb appeal. Install a dynamic new front door, redo an entryway, landscape the front yard, paint the house, or replace worn siding. All of these projects beautify your home and give the exterior a new appeal.
- Remodel kitchen and bathrooms. Modern kitchens are always in demand, so replacing countertops and appliances can add a lot to the sale of your home. Similarly, bathrooms can shine with new fixtures, flooring, paint, and mirrors, at relatively little cost.
- Save energy. Replacing leaky windows and doors and adding insulation will save heating and cooling costs. These improvements can also save tax dollars. Starting January 1, 2023, you can get a rent tax credit of up to $600 for Energy Star-qualified windows and skylights and $250 per exterior door (up to $500 per year) for Energy Star-qualified doors. water, qualified hot water furnaces and boilers, or central air conditioning can earn tax credits of up to $600 per item. This credit is worth up to $1,200 per year for qualified properties placed in service on or after January 1, 2023 and before January 1, 2033. If you distribute your home improvements during the 10-year term of this credit and receive $12,000 in taxes benefits!
You can get a separate additional credit of up to $2,000 per year to replace your qualified heat pumps, biomass stoves, and biomass boilers with a new, efficient one.
- go sun. Because they are so efficient, the government offers a 30% tax credit for solar electric panels, solar water heaters, wind turbines, geothermal heat pumps, fuel cells, and battery storage technology (starting in 2023). There is no limit to the credit you can claim. You can claim the credit each year you install an eligible property through 2033.
Don’t worry about knowing these tax rules. Meet with a full-service TurboTax expert who can prepare, sign, and file your taxes, so you can be 100% sure your taxes are done correctly. Begin Full Service TurboTax Live today, in English or Spanish, and finish your taxes and forget about it.
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