When it comes to selling your house or opting for a home equity loan, the first question that would pop into your mind is usually; is kitchen remodeling tax deductible?
Before we jump into the answer, let us focus on the fact that kitchen remodeling in itself is considered one of the five largest purchases made by a person in their lifetime. So it is no secret that they would be ideally interested in knowing if a kitchen remodeling will result in a deduction of tax or not.
Since tax season is always around the corner, we understand that preparing beforehand is a good strategy, especially if you invest in a major kitchen renovation.
Repairs and Remodel in Kitchen Remodeling
Repairs are not tax-deductible, so if you have opted to get some major plumbing fix performed in your kitchen, unfortunately, it will not count as tax-deductible.
Whereas, if you are getting anything in your kitchen completely remodeled, yes, that would be tax-deductible. Remodeling the kitchen is like going for a major home renovation. That is why you can benefit from the tax deduction.
Remodeling a Kitchen of Your Residence or Workplace
The policy regarding tax deduction will also vary if you are opting for kitchen remodeling at your personal residence or at your workplace. This is important to understand because when it comes to your home renovation, the expense incurred in kitchen remodeling will not be tax-deductible.
However, if you have an office made in one of your house rooms, then it qualifies for a tax deduction which is one way of lowering your expenses if you can prove that you have a legitimate home-run business. Similarly, kitchen remodeled in workplaces easily qualify for a tax deduction as well.
Selling your House
You can easily qualify for the tax deduction when you opt to sell your house, which is great news for people looking to get their kitchens renovated anytime soon. The only clause that needs to be met is that the expense incurred in remodeling the kitchen has to be added to the new value of the house. It should also extend the house’s lifetime and enable you or the new buyer to use it in new ways.
Just make sure you keep a financial record of all the projects undertaken to renovate the kitchen, so when the time comes for a tax deduction, you can prove your case.
Kitchen remodeling is tax-deductible by keeping a close watch on these clauses and requirements. You can now start looking at different home improvement areas to claim your taxes and reduce your expenses.
We understand kitchen remodeling is a major investment made by anyone who decides to go for it, and we would like to make you aware of your rights and benefits as much as possible. So if you are looking to get more information on kitchen remodeling and tax deduction, please get in touch with us.