Houlihan Lawrence Inc.
Anna Teyssonniere de Gramont, Houlihan Lawrence Inc.
Email: [email protected]
Tax Breaks For Home Improvements

by Anna Teyssonniere de Gramont 12/23/2018

One of the biggest benefits to buying a home is that of the tax savings for you. You own a home now, so there’s no more monthly rental payments going out the window. All of your mortgage payments are going towards your financial future. There’s many different types of tax breaks that you can get from owning your home. Many home improvement projects that allow you an extra tax break are hiding right in the fine print! Tax breaks are known as “incentives.” These incentives are essentially what help people to get important things in their homes done without having a order placed on them. There are some hidden things that you may not have known could be used as tax write-offs.  


Energy Savings


From putting solar panels on your home to replacing appliances, there are certain tax breaks that you can get for making your home more energy efficient. There are lifetime caps on these deductions, but on a certain year, you’ll be able to save some extra money on your taxes. Some of the deductions that you might be able to claim include:


  • Air-source heat pumps
  • Biomass stoves
  • Central AC units
  • Water heaters
  • Certain energy-generation systems which include an array of things like water heaters, solar panels, fuel cell systems, wind turbines, and geothermal heat pumps.


You can deduct somewhere in the neighborhood of 30% of the cost of these improvements to your home. It doesn’t hurt to check on the updated standards that are introduced each year by the government. Your accountant can help you to understand your own deductions a bit more in-depth. 


Modifying Your Home For Medical Needs


If you need to modify your home in order to accommodate medical needs, you may be eligible for a tax deduction. The modifications must not increase the value of your home and be medically necessary. If the doctor tells you to lose weight and you put in a home gym, you can’t deduct that. If you need a ramp put in your home for wheelchair accessibility, then that can be deducted. The cost of the modifications generally has to exceed 10% of your adjusted gross income, or 7.5% if you’re over the age of 65. 


What’s Not Deductible


If you have done some major remodeling around your home, it’s sad to say that these improvements probably aren’t tax deductible. On the positive side, you will get a bigger return on your home when you do decide to sell it. This could help you to reduce any capital gains tax that you may have to pay on the sale of the home.


Remember that when you make improvements to your home, you’re doing it first for your own needs. Any tax write-offs that you may get are merely a bonus.

About the Author

Author
Anna Teyssonniere de Gramont
About My Life Polish born, French by marriage, American Resident since 2004. I know first-hand the stress and excitement of moving. With my husband and our 3 children we lived in Warsaw (Poland), Versailles (France), Singapore (Singapore), Chesney (France), San Francisco (California) and now Scarsdale (New York). I have earned Master’s Degree in Business Administration from Warsaw School of Economics. After working for a number of years in Finance Department for BOC Gases in Warsaw and Singapore, I dedicated my life to raising my 3 children, supporting my husband and taking care of our multiple homes. Since we settled down in Westchester, I have been actively involved in my children's schools' life. I offered volunteer work to Lyceum Kennedy, French American School of New York (FASNY) as well as Thornton Donovan School in New Rochelle. Recently, we have adopted a dog named Teepee from Pet Rescue in Harrison. Besides English, I speak Polish (native), French and some basic Russian. About My Work Whether you want to sell, buy or rent, we will work as a team. I strongly believe communication is key in building our relationship. You should never hesitate to pick up your phone and call or text me. I will always do my best to get you an answer or point you to a reliable resource. In this very competitive business of real estate, satisfied clients are the key to my success. Let me show you what I can do for you. Selling a home is a very important decision. Some try to sell their home by themselves. It is understandable, but 80% of homeowners hire a professional in order to sell quickly and for the best price the market can offer. Real Estate agents constantly monitor their local market. I have seen countless houses in every price range in many neighborhoods in Westchester. This extensive experience, helps me price your home right for the current market condition. We will work together to prepare your home for sale and professional photographs. Houlihan Lawrence lends their angent the best marketing tools to advertise your home. I will manage the showings for you and help negotiate the best price. Give yourself the best chance to find a qualified Buyer, so you can quickly and smoothly move to wherever you wish to be next. Talk to a professional Realtor. Talk to me. Buying a home is one of the most important decisions in life and for most people the biggest financial commitment, too. There is more to buying real property than finding a pretty home on-line. It is a process. It may go smoothly, if you understand it well and come prepared. As your agent, I can offer guidance and market information you need. I will show all the houses you will want to visit. I will verify information provided on the listing, I will give you information about its history and similar houses sold in the neighborhood to help you negotiate. As your agent, I will always have your best interest in mind! Don’t give up the chance to have a professional on your side. My area of expertise is buying, selling and renting residential properties in Lower Westchester NY: White Plains, Rye, Harrison, Mamaroneck, Larchmont, New Rochelle, Scarsdale, Bronxville, Edgemont, Eastchester, Hartsdale, Hastings-on-Hudson, Dobbs Ferry, Irvington, Ossining and Yonkers