Home improvements tend to be costly. In order for most homeowners to fund home improvement projects with a reputable roofing company that will enhance the comfort and add to the functionality of their homes, they will need to borrow money one way or another.
Borrowing money, however, has its downsides, one of which is interest. Certain loans have high interest rates, and one of the ways homeowners can ultimately lessen the costs of improving their homes is to claim a tax deduction.
Does My Home Improvement Loan Qualify for a Tax Deduction?
Homeowners like you can deduct loan interest from a home improvement loan on your taxes, as roofing companies can attest. However, before you can claim the tax break, you’ll have to present proof that the loaned money was indeed used for projects that greatly improved your home’s comfort, function and overall value.
Here are some of the capital improvements that qualify you for a tax break:
Some of the home interior improvements that may qualify you for a tax deduction include adding or remodeling rooms, including kitchens and bathrooms; completely rewiring the home’s electrical connections; installing HVAC systems; and insulating all parts of the home.
These greatly improve the quality of your indoor living space while qualifying you for a tax break.
Improvements to your home’s exterior also allow you to file a claim on a tax deduction. These improvement projects include building a new swimming pool, paving your driveway and adding a new deck, porch or patio.
Homeowners that need to have their home’s siding and roofing replaced can also take advantage of a tax break. Tax deductions allow you to have your home repaired and improved without having to spend more than you are able to.
Important Things to Remember
Before taking out a loan and claiming a tax break, however, you have to keep in mind that the loaned money should never be used for routine maintenance and repairs.
More importantly, you should own the home used to secure the loan, and reside in it, so that you can be eligible for the tax break.
Make your home improvement loan count by calling one of the best roofing companies to work on your project. Call DryTech Roofing LLC, a top-rated roofing company, at (240) 491-5600 or fill out our online form for a free estimate. We work with homeowners in Maryland.