All Month  Village Mall  Danville, IL

Feb. 11^th-13^th   Gordyville   Gifford, IL

Feb. 12^th-13^th   Effingham Home Builders Show   Effingham, IL

Feb. 25^th-27^th    Decatur Home Builders Show  Decatur, IL

Once again we will be at the village Mall Danville, Il stop out today while your doing that after Christmas shopping and sign up for you free no obligation in home estimate. With such amazing savings in 2011 why wait when you could be enjoying your new windows, siding, roof or even a sun room right away!

Generally, there are three ways a home improvement might benefit you financially come tax time. You may be eligible for some sort of income tax relief if:

• Your home improvements are being performed for medical reasons
• Your home improvements include certain energy-efficient upgrades to your home
• You are going to be using a home equity loan or home equity line of credit to actually pay for your home improvements

Before we get into those three scenarios, let’s discuss the basics of how home improvements work with taxes in the United States.

Home Repair vs. Home Improvement

First, it’s important to remember that there is a difference between home repair and home improvements, especially from an income tax perspective. Simply fixing things that are broken or worn out around your home are generally considered “home repairs” and generally do not count towards any sort of tax deduction or tax credit. However, if you replace something that is worn or broken with something new (such as more energy efficient windows or doors), then that may be seen as a home upgrade or home improvement and contribute to your tax refund.

The good news is that if you need to perform a home repair at the same time or in the same area of your home as the home improvement, then you may be able deduction the cost of the home repair on your taxes. The difference between a repair and an improvement on your home is not always cut and dry so your specific situation may dictate exactly how you can count certain home projects on your taxes.

Home Improvement Tax Deduction vs. Home Improvement Tax Credit

It’s also important to remember that there are different ways to increase your income tax refund with home improvement projects. In some cases you may be eligible for a tax deduction and in other cases you may be eligible for a tax credit. The difference could be substantial.

A tax deduction lowers your “taxable income” amount while a tax credit takes a set amount right off the taxes you owe. So If you make $30,000 per year and you get a $1,000 tax deduction then the government is really only taxing you on $29,000. The amount you get back from a tax deduction depends on your income tax bracket. If you’re in the 30% income tax bracket then a $1,000 tax deduction means you’d “get back” about 30% of that money in a tax refund. In this case it would be about $300.

If you get a $1,000 tax credit then are are still being taxed on $30,000 but you get to take $1,000 off the amount you owe the government (if you are getting a tax refund then you might get an extra $1,000 back!).

If you have an account or use any sort of income tax software to do your taxes, you shouldn’t have to worry too much. They can take care of the math and some of the tax software programs will even look at a couple different scenarios and pick out the one that is most beneficial to you.

Home Improvements for Medical Reasons

If you or someone living in your home has a medical condition that warrants a home remodelling or home improvement, then the cost of that project may be able to count towards a tax deduction. You will most likely need a doctor to write a letter stating what improvements are needed to your home for medical conditions and why, you will need to itemize the your deductions and keep track of the work being done with a breakdown of costs and the project will have to be 7.5% or more than your annual adjusted gross earnings for that year.

Here are some of the medical conditions that often require home improvements or upgrades to a home that could be tax deductible:

Home Improvements for Wheelchairs: People suddenly needing a wheelchair must often perform extensive work on their home to make it more livable. Some home improvement projects that could qualify for tax deductions in this case are adding elevators, widening doorways, adding wheelchair ramps, lowering kitchen cabinets, installing bathroom handrails and even lowering light switches.

Home Improvements for Allergies or Breathing Problems: People with breathing issues are often told by doctors to improve their home’s air filtration system, install central air-conditioning and remove and replace any drywall that may be damp and moldy.

Home Improvements for Other Physical Ailments: Other ailments or injuries requiring physical rehabilitation could also warrant specific tax deductible home improvements such as hot water spas, therapeutic swimming pools or other additions to a home to accommodate special medical equipment.

IRS Publication 502 has more detailed information about exactly what may and may not qualify for a medical home improvement tax deduction.

Home Improvements to Increase Energy Efficiency

Home improvements and upgrades to increase your home’s energy efficiency are numerous and constantly changing. It’s actually difficult to keep track of all the rebates and tax incentives you may be eligible for because there are federal regulations, state regulations and even separate utility rebates available in some cases.

In 2008 there were a number of energy efficient upgrades that were no longer eligible for tax credits or deductions (they were part of the 2005 Energy Policy Act), but many of those items are once again eligible for tax credits in 2009 and 2010 due to the new American Recovery and Reinvestment Tax Act of 2009. There are lots of different options, but now tax credits are available for 30% of the cost of certain energy efficient upgrades, up to $1,500! That means that if you spend $3,000 in qualified energy efficient home improvements, you get a tax credit of about $1,000 (30% of $3,000). This is a big improvement over the previous energy efficient home improvement tax credits available in the past.

Some examples of energy efficient home improvements for existing homes that could impact your 2009 and 2010 income taxes:

• New energy-efficient windows and doors
• Adding new insulation
• Upgrading to a metal or asphalt roof (Metal and Asphalt)
• Upgrading to a more energy efficient air conditioning or heating system
• Newer non-solar water heaters
• Purchasing a biomass stove

Other home improvements that are eligible for tax credits for new and existing homes that extend into 2016 are:

• Geothermal heat pumps
• Installing solar water heaters
• Installing solar panels
• Installing wind energy systems or fuel cells

Northfield Square Mall-Bourbonnais, IL

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A Baby Boomer Lifestyle Expo

Holiday Inn in Urbana.

The baby boom generation includes those born from 1946 to 1964, or roughly those between the ages of 46 and 64. But the expo is open to everyone, regardless of age.

Pana Heritage Days

Pana, Il

With so many events going on during Pana’s Heritage Days make sure to stop by our booth for additional savings!!!

The Monticello Main Street May Home & Garden Market

Monticello, Il

When thinking about improving your home inside and out, the The Monticello Main Street Home & Garden Market is the place to be!
Come visit our booth for some great specials on all your home improvement needs!

The Steam Corner Antique Power Show

Veedersburg, IN

Stop in and visit our booth at the Flea Market with so many home improvement options available, let us show you how to make you home improvement project worry free!!