No matter how you slice it, home renovation is not cheap. Expect to shell out more than a pretty penny. However, are you aware of government programs for home remodeling? These programs relieve some of the financial burden in the form of a tax credit.

Three Government Programs for Remodeling a Home

1. Home Office Deductions

If you work out of your home, then you may qualify for a home office deduction. You must have a legitimate and verifiable business and use a portion of the home as a work office.

Do you use a spare bedroom as your office? If you hire a renovator to install a built-in bookshelf, for example, you can depreciate the cost as a business expense.

2. Renting Out Your Home

If you rent a portion of the home to a tenant, then you can depreciate the interior remodeling cost as a rental expense. This only applies to any portion of the home rented out. If the home has separate living quarters for the tenant, then you only receive cost exemptions for renovations to that particular area. A safety and mobility remodeling for a disabled tenant, on the other hand, will certainly qualify.

3. Sell Your Home

Remodel your home before putting it on the market. Let’s say, for example, that the house was valued at $200,000 at the time of purchase. You spend $50,000 on a kitchen renovation before selling for $300,000. That is a $50,000 gain, and you only pay taxes on that amount. To qualify, you have to have lived in the home for at least two years.

We’ll Handle the Remodeling

Contact DreamMaker of Greenville if you’re remodeling for any of the above reasons. We’re not financial experts on government programs for remodeling a home, so speak with a tax expert to learn more.

Home Renovations for Tax Exempt Benefits

Serving homes and businesses in Greenville and Greer, Mauldin, Simpsonville, Fountain Inn, Taylors, Travelers Rest, Easley, Piedmont and Spartanburg.