What Home Remodeling Projects Are Tax Deductible?

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There is no doubt that home remodeling projects add value to your Fresno or Clovis home — not only to the property value, but also to your life. However, home remodeling projects can be pricey, so getting a tax deduction would be nice. J & J Quality Construction is a top-rated home contractor in the Fresno and Clovis areas. Below, we’ll go over some home improvement projects that are tax deductible. Get a free quote today!

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image of a solar panel

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Energy-Efficient Home Renovations

Many homeowners are aware of the tax credit they receive when they install solar panels on their homes. In addition, you may receive a tax credit for purchasing and installing a solar water heater, using wind turbines for power for your home, and replacing your doors or windows with ones that meet Energy Star requirements.

Image of a handle in a bathtub

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Medical Care Home Improvements

Many seniors renovate their home so that they can age in place. Many of these home renovations can be tax deductible. The stipulation is that its main purpose has to be to care for you, your spouse, or a dependent. Some of these home improvement projects include installing a wheelchair ramp, widening your home’s hallways and door to accommodate a wheelchair, and installing bars in the bathroom, such as in your shower or near your toilet.

Image of a home office and laptop

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Home Office Renovations

The caveat here is that you have to be self-employed or run your business out of your own home to receive tax deduction for home office renovations. With the plethora of workers now working from home due to COVID-19, you may see this altered in the tax laws in the future.

A picture of a nice finished basement

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Capital Improvements

If you are investing in home renovations in order to resale your home, many of these can be tax deductible. However, you can only take these tax deductions when you sell your home, so it’s important to keep track of these. Common capital improvements to your home include finishing your basement or building a home addition.

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