Tax Write-Offs That Are Available For Home Improvements

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.

Open house on 11/21/2020 at 59 Mill Street Dracut, MA 01826


Date: 11/21/2020 Time: 12:00 PM to 2:00 PM  
For Directions: feel free to contact me.  
For more information: click here for the full details  

Great opportunity to own a unit in the lovely Dallas Park 55+ Adult Community. It is rare to have a unit come on sale and more rare to have an end unit. Unit has been freshly painted and ready for just the right buyer. Living Room and Dining Room combination is an open concept with the kitchen and offers sliders to the deck where you can hear the babbling brook right from your deck. This complex offers an elevator, and underground parking. Location is excellent and walking distance to public transportation or a short drive to tax free NH. This complex is hidden away for privacy, yet close by to local eating establishments and shopping. Stop by our Open House, you won’t be disappointed.

Video Tour – Condo Home – Dracut, MA 01826 Real Estate – For Sale

Great opportunity to own a unit in the lovely Dallas Park 55+ Adult Community. It is rare to have a unit come on sale and more rare to have an end unit. Unit has been freshly painted and ready for just the right buyer. Living Room and Dining Room combination is an open concept with the kitchen and offers sliders to the deck where you can hear the babbling brook right from your deck. This complex offers an elevator, and underground parking. Location is excellent and walking distance to public transportation or a short drive to tax free NH. This complex is hidden away for privacy, yet close by to local eating establishments and shopping. Stop by our Open House, you won’t be disappointed.

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