Both home owners and real estate investors are dying to find new, bigger, and better ways to improve their investments. In this case, we are specifically talking about property investments. This could be your personal home or even some of your investment real estate, the bottom line here today is all about tax breaks and saving money. Music to every one’s ears these days.
Our Government is very interested in stimulating this economy, therefore, there are some wonderful tax breaks and incentives out there to get you to spend money, put it into the hands of a business, have it trickle down to their employees, and they will give you some killer tax breaks as a result of doing this and improving your existing houses.
Specifically, there are 4 home upgrades that are worth the tax breaks offered that we want to share with you today. This piece was influenced by an MSN article here, which you can review for further information and ideas, but we are going to give you the crux of the matter here.
4 Tax Breaks to Consider
Here are the four home improvements that you should consider immediately in order to qualify for your tax breaks.
1. Adding Insulation
Believe it or not, adding insulation to your home can qualify you for a tax break and is a great idea. Insulation can save you as much as 20% on your energy bills, which is terrific, but it can really save you on your budget because this is the most inexpensive way to improve your home and still qualify for the tax breaks the Government is issuing to people. However, if your home is less than 5 years old, then it is more likely that you won’t need new insulation, but you could consider it.
We suggest hiring a professional to install your insulation, but if you want to go for it and be a do it yourself warrior, then you have our blessing considering you know what you are doing.
2. Replacing Windows and Doors
This tax breaks cap was raised from $200 to $1,500, which could be music to an homeowner or investor’s ears. Who couldn’t use this type of extra money? It could be yours with a few considerations. Your installments must have a label from the National Fenestration Rating Council with the U-factor rating on it that is no more than 0.30. This measures how well your improvement keeps heat from escaping the home. In addition, the label should have a list of the solar heat gain coefficient, or SHGC, of no more than 0.30 as well.
This improvement can be a bit costly as windows and doors are not very cheap, but very useful. As we are sure you are aware that the right windows and doors can help save another 20% on your heating bills as well this winter, which is always a welcomed site.
3. Installing Air Conditioners
The typical air conditioner will cost you about $2,000, which isn’t something to sneeze at, but they typically have a useful life of about 12 years, which can be a great investment. Like everything else, you will need an AC unit with specific standards in order to qualify for the tax break. And with the AC unit, you will need a seasonal energy efficiency ratio, or SEER (measures the efficiency of central air, of at least 16 and an energy efficiency rating, or EER, tracks how it operates once outdoor temperature reaches 95 degrees, of 13 at least.
If you are interested in finding out if your AC unit qualifies for this tax break, then visit CEE HVAC Directory.
4. Put on a New Roof
In my neighborhood, it seems like very one is adding a new roof these days. Guess they are taking advantage of the tax breaks, maybe we should get in on the act as well. You don’t have to create a green roof in order to qualify, although that would open you to additional tax breaks, but it is something that you might want to consider.
A new roof can run you anywhere between $5,000 to $10,000 depending on the size of your home and the type of roof that you are putting down. But after you hit the $5,000 cost, you would be eligible for the full $1,500 tax break from the Government. This is welcomed considering the cost of adding a new roof. However, if your roof is currently less than 15 years old, then you shouldn’t need a new one any time soon, but that should be determined on a case by case basis. Some roofs are leaking and need to be changed now, while others might last 20 years.
Nevertheless, if you are looking for some extra tax breaks this tax season, then don’t look any further than our list of four here. There are many more tax breaks out there to be taken advantage of, but when you have to make repairs to your home and investment properties anyway, this seems like a good idea and time to get them done, enjoy their benefits, and save a little extra money in the process.
