From Gregacct.com archives
Benefits
Homeowners receive the following benefits (subject to the limit on itemized deductions and higher-income taxpayers).
- Home mortgage interest deduction
- Property tax deduction
- Deduction for losses from fire,floods, storms, earthquakes, or other casualties; to the
extent that the loss exceeds $100 and 10% of your adjusted gross income after the amount
is reduced for insurance reimbursements.
- Deduction for expenses if you conduct a business in your home, providing you meet other
tax law requirements.
- No tax on the gain on the sale of your home if under $250,000 ($500,000 for married
filing joint). Certain holding period & living in home rules apply.
Home Improvements
You should keep accurate records of all home improvements. You can't deduct them on a yearly basis, but when you sell your home they will increase your basis in the property and decrease any gain you will have.
Here is a list of improvements that may increase the tax basis in your home.
- New storm doors & windows
- Adding a room
- Reshingling or adding a new roof
- Adding insulation
- Installing air conditioning
- Finishing attic or basement
- Sprinkler system
- Adding a fireplace
- Landscaping, grass,trees,shrubs
- Adding a swimming pool
- Fences and gates
- Retaining walls
- Sidewalks
- Paving or blacktop drive
- Assessments for curbs,sewer, water
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- Adding an out building
- Decks, terraces, or patio
- Additional land
- Laundry chute
- Attaching wall mirrors
- TV antenna & wiring
- Fire alarm system
- Burglar alarm system
- Outdoor lighting
- Adding a shower door, towel racks, medicine cabinet ect in bath.
- Installing a kitchen dishwasher, sinks, garbage disposal or a range hood, over the stove
microwave.
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