| People who are considering doing some home | | | | your home repairs in your home improvement |
| improvement will be intereseted to know that | | | | deduction. A clause in the act states that if |
| the money you spend in order to complete your | | | | an area of the house in need of repair is in |
| project is eligible for tax deduction. It is | | | | the same area in which remodeling is taking |
| very important to know exactly what you are | | | | place, the project undertaker is allowed to |
| doing in your home improvement process, | | | | claim teh entire project as an improvement. |
| however, as home improvement is different | | | | Basically, if you are remodeling the kitchen, |
| from home repair. In the case of the tax | | | | remember to fix the leaks in the roof and |
| deduction, home imporvement will qualify for | | | | then claim the repair as part of the |
| the reduced rate, but home repair will not. | | | | improvement. |
| It is imperative to know the difference | | | | |
| between what constitutes repair and | | | | Timing is definitely a factor when it comes |
| improvement. | | | | to home improvement. The best time to do some |
| | | | upgrades to your home will be when interst |
| SImply put, home improvement is an addition | | | | rates are low. The lower rates mean that in |
| that will add to the appearance and the | | | | the long run, the person using a loan to |
| quality of your house. Items that fall under | | | | finance their improvemets will be able to |
| this category include things like kitchen | | | | spend less money. Refinancing is one way that |
| remodeling, adding a fence to your yard, | | | | many people secure the money to spend on |
| adding a swimming pool, extending a wing on | | | | their project. Loans secured in this way can |
| your house and including a new room or two, | | | | be deducted in the same year as the refinance |
| building a garge, adding a porch or deck, | | | | as points. If the proceeds of the refinancing |
| installing new insulation, or upgrading | | | | are not used to improve a house, then points |
| heating and cooling systems. All of these | | | | towards the improvement can be deducted over |
| upgrades are considered to be capital | | | | the life of the loan. If a project only uses |
| expenses. | | | | a part of the loan that was taken out, then |
| | | | the deduction is considered proportional, |
| Home repair, on the other hand, is in a | | | | with the remainder being taken off over the |
| different category. Home repair is a project | | | | life of the mortgage. It is important to keep |
| that is undertaken in order to prevent the | | | | in mind that the points which are not taken |
| decay of your property. It does not add value | | | | off by the time the loan expires are usually |
| to the house, instead it prevents the value | | | | deductible according to the percent rate in |
| from going down. This includes things like | | | | the final year. |
| repairing holes in the walls or broken | | | | |
| windows. These repairs correct a problem, and | | | | Improving your home, in the end, will always |
| therefore are not considered eligible for tax | | | | add value. It is important in terms of saving |
| benefits. | | | | some extra money that the home owner is aware |
| | | | of what can be deducted and what cannot. |
| Ther is a way, however, that you can include | | | | |