{"id":15669,"date":"2017-03-01T14:32:01","date_gmt":"2017-03-01T20:32:01","guid":{"rendered":"https:\/\/resource-center.hrblock.com\/?p=15669"},"modified":"2020-04-22T14:15:21","modified_gmt":"2020-04-22T19:15:21","slug":"home-improvement-tax-benefits","status":"publish","type":"post","link":"https:\/\/hrbcomlnp.hrblock.com\/tax-center\/filing\/personal-tax-planning\/home-improvement-tax-benefits\/","title":{"rendered":"“Should I Make Home Improvements During Tax Season?”"},"content":{"rendered":"

Tax season is upon us, and if you\u2019re like most people, you\u2019re probably thinking hard about your financial situation. For a lot of taxpayers, your home<\/a> is your biggest investment\u2014and it can even secure a number of deductions if you play your cards right.<\/p>\n

As with most things in life, timing is everything. Coordinating a renovation to fall in line with tax season is key. You may not be able to claim (potentially) lucrative tax credits until next year, but you\u2019ll have plenty of time to get it all right\u2014gather tax documents and find the right tax preparation for you\u2014before tax time rolls back around again.<\/p>\n

Here\u2019s the skinny on tax-minded home improvement planning:<\/p>\n

1 – You Can Deduct the Cost of Certain Energy Improvements<\/h2>\n

Thinking about going solar? The Residential Energy Efficient Property Credit<\/a> could pay out up to 30% of the costs to purchase and install qualified energy equipment, like solar panels and solar hot water heaters. When you claim this credit on your taxes, the IRS deducts that 30% from your final tax liability\u2014in other words, the amount you owe to the federal government once you calculate your net gain and deductions. Is your tax liability for the year less than 30% of your system costs? You can roll the remaining credit over to use for next year.<\/p>\n

Since you\u2019re prepping your 2016 taxes now, you won\u2019t be able to claim these deductions until next January on your\u00a02017 tax return. That\u00a0means almost a full year before those home improvement credits could come home to roost.<\/p>\n

2 – Making Home Renovations During Tax Time Gives You Time to Plan Ahead<\/h2>\n

Instructors tell interior design students that \u201ceverything takes three times as long as you think it will.\u201d You may have the quickest contractor on the block, but vendor delays, permitting snags, and even your own decision process can all slow home improvements down. It\u2019s never a bad idea to allow for extra time to work out all the kinks. After all, home improvements aren\u2019t exactly reversible, and if you\u2019re planning on taking deductions<\/a> for next year, you want to have all the time you need.<\/p>\n

Take the time to gather at least three to five different quotes for your project, to check your contractor\u2019s reputation and references, and to talk at length with the worker you hire about what you really want from your project and what you\u2019re willing to spend.<\/p>\n

As a bonus, this allows for time to plan your improvement around contractor off seasons, so you may save a little bit of money. For instance, you can schedule an AC replacement for the early fall, when everyone is dreaming up their Halloween costumes, thinking of fall, and not worrying about their HVAC<\/a> equipment. You\u2019ll have your pick of the litter in terms of contractors!<\/p>\n

3 – Plan to Make Improvements After Your Home Is Assessed for Property Taxes<\/h2>\n

If you\u2019re anything like most people, you don\u2019t have the money to waste paying extra taxes. Scheduling your home renovations appropriately can save you money on your property taxes\u2014for this year, at least. Contact your local assessor\u2019s office to find out when valuations occur so you can plan your project for afterwards. A large renovation\u2014such as refinishing a basement or upgrading a bathroom\u2014can improve your home valuation. Anything that increases your home\u2019s living space means it\u2019s worth more. In some cases, even adding a covered deck or nice shed could trigger a reassessment.<\/p>\n

Because local property assessors typically work on their own schedules, get in touch with their office directly to find out when your property assessment is scheduled. Then, schedule your new kitchen revamp for afterwards. After all, why pay extra when you don\u2019t have to!<\/p>\n","protected":false},"excerpt":{"rendered":"

Tax season is upon us, and if you\u2019re like most people, you\u2019re probably thinking hard about your financial situation. For a lot of taxpayers, your home is your biggest investment\u2014and it can even secure a number of deductions if you play your cards right. As with most things in life, timing is everything. Coordinating a […]<\/p>\n","protected":false},"author":418,"featured_media":26152,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[39,125],"tags":[],"class_list":["post-15669","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-personal-tax-planning","category-filing"],"acf":[],"yoast_head":"Home Improvement Tax Benefits | H&R Block<\/title>\n<meta name=\"description\" content=\"From the Residential Energy Efficient Property Credit to property tax increases after a remodel, become a savvy home improvement tax guru with H&R Block.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/hrbcomlnp.hrblock.com\/tax-center\/filing\/personal-tax-planning\/home-improvement-tax-benefits\/\" \/>\n<meta property=\"og:locale\" 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