| A home improvement deduction may fall under | | | | deduction based on individual circumstances and |
| any of several different topics, so it is important | | | | your family financial consultant or accountant can |
| to explore the situations that are right for you. | | | | help determine the rest. |
| For example, if a mortgage has been refinanced | | | | It is possible that a deduction may fall within |
| to pay for a project, the owner of the home | | | | several areas on the same form, whether some |
| may qualify for a legitimate deduction. Likewise, | | | | of it is written off under a refinanced mortgage, |
| deductions may be claimed if the home is being | | | | handicapped accessibility, or flood damage. It is |
| redesigned to make it handicapped accessible. | | | | better not to figure these out yourself, unless |
| A home tax deduction for medical or handicapped | | | | you have advanced knowledge of the tax laws |
| purposes may create a substantial tax savings, | | | | and/or are ready to be held personally |
| but only a qualified professional can best counsel | | | | accountable when a deduction is found to be |
| you regarding these situations. In addition, it may | | | | inconsistent with current laws. |
| also be possible to claim a deduction if you are | | | | You may call the IRS with additional questions |
| building or improving a home office inside, or | | | | regarding a deduction at 1-800-829-1040 for live |
| attached to the main residence. | | | | assistance, toll-free at 1-800-829-4933 for |
| Victims of Hurricane Katrina may qualify for a | | | | business assistance, and 1-800-829-4059 for TTD |
| special tax deduction but should consult the IRS | | | | assistance. |
| regarding the Katrina Emergency Tax Relief Act. | | | | Do not wait until the construction is over to |
| In brief, it increases the permitted qualified home | | | | determine whether you have a qualified home |
| improvement loans. Again, a tax specialist can help | | | | improvement tax deduction. Good record-keeping |
| determine if these victims can claim a special | | | | throughout the project will make it easier to |
| home improvement tax deduction based on their | | | | decide whether your deduction is legitimate, or if |
| individual situations. | | | | additional information and/or authorization is |
| Publications | | | | required. |
| There are a wide range of publications from the | | | | One Last Tip |
| IRS that should be consulted, in whole or in part, | | | | To some people this might sound like a no-brainer |
| before planning to claim a deduction. These include: | | | | but it's important and quite a few people think |
| Publication 936, Home Mortgage Interest | | | | that it doesn't apply to them. If you're going to |
| Deductions; Publication 502, Medical and Dental | | | | try and get a deduction for imporvements made |
| Expenses, which will discuss accessibility-related | | | | on your home please be sure that it's valid. Don't |
| situations of a home improvement tax deduction; | | | | try to get something out of the government by |
| Publication 530, Tax Information for First-Time | | | | lying or stretching the truth about costs involved |
| Homeowners; and Publication 554, Older | | | | or anything else to do with the deduction. Sooner |
| Americans' Tax Guide. All of these may address a | | | | or later you'll be found out. |