Do your homework on home improvement deductions for 2014 taxes
Do your homework on home improvement deductions for 2014 taxes
(firmenpresse) - Even the professional contractors who built your house or office building get confused about the home improvement expenses the IRS allows as deductible, so it’s no surprise Joe Taxpayer is often left scratching his head in bewilderment.
If you are planning to include home improvement deductions in your 2014 tax return, Traverse City tax specialist Frank Ellis recommends you start your homework now. If you wait until the last minute to prepare your return yourself, you could end up in a maze of trouble.
Ellis says areas where you may be allowed deductions include:
•Personal home improvement. IRS classifies all expenses related to maintenance and repair of personal property under personal, not business, expenditures. If you use part of your home for business, you may be able to get a home office deduction. Tax breaks usually apply to your home only when you are ready to sell it.
•Adjustable tax basis and taxable gains. The difference between the sale price of your property and your tax basis is the sum of all investments made by you on home improvement and related expenses.
•Home repairs. Keeping your home in proper shape by preventing deterioration, retaining functionality and paying for maintenance is classified as repairs which can fall into the category of daily business expenses. The most common repairs in this category are carpet and drape cleaning, maintaining vents and air ducts, fixing broken glass, and other repairs that restore the original functionality of your property.
•Home renovation. They usually aim at improving your home’s function beyond its original purpose and should affect the resale value of your house. They spread over the life of the property and fall into the process called depreciation and amortization.
•Energy home improvements. Energy tax credits can apply to existing homes, new construction and second homes, but not rental homes.
Obviously, many headaches can result from the time-consuming process of researching home improvement tax deductions. Frank Ellis suggests avoiding them by using online software such as TurboTax. TurboTax will scan your return many times before filing to be sure you will not miss any valuable tax credits or deductions.
Frank Ellis is a published author who has been writing tax and finance related articles for eight years and has written more than 700 articles for internet publications. He can be reached by phone 231-922-0938 or email frank(at)easyincometaxfilingonline.com. His website is www.easyincometaxfilingonline.com.
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Unternehmensinformation / Kurzprofil:
Datum: 22.02.2014 - 18:00 Uhr
Sprache: Deutsch
News-ID 327581
Anzahl Zeichen: 2729
contact information:
Contact person: Frank Ellis
Town:
USA
Phone: 231-922-0938
Kategorie:
Accounting, Audit and Tax
Typ of Press Release: bitte
type of sending: Veröffentlichung
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