Remodeling Your Home Can Boost Its Value

About Me

Remodeling Your Home Can Boost Its Value

While my wife and I loved our home at first, after a few years, we started craving a change in scenery. We thought about remodeling it to see if that would give us the change we were looking for, but we worried that if we were still bored of our home after the remodeling project, we would have just "wasted" our money before putting it on the market. That mentality changed when we learned that some home remodeling projects can boost the value of your home greatly and even help it sell more quickly after it is put onto the market! We soon had our kitchen upgraded and a few other changes to our home and found out that it really was the change we were craving. I learned a lot about home renovations during the remodeling process, so I decided to create a blog to share my tips on!

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Water Heater And Furnace Service And Tax Credits: How You Can Claim Your Energy Credit

If you had any type of furnace service this year that required a furnace or water heater replacement, you may qualify for a tax credit. There are some restrictions, however. Only certain types of furnaces and water heaters qualify. 

Furnace Replacements and Conversions for Which You Can Claim the Tax Credit

Geothermal furnaces count, as do boilers and energy-efficient furnaces that run on natural gas or oil. If your old furnace was electric and you made the switch to any one of these more earth-friendly options, you can claim a credit for it on your taxes. Just be sure to supply your tax prep agent with the receipt from the contractor and make sure the receipt shows an itemized list of the furnace conversion services or furnace replacement.

Water Heater Replacements

If you replaced your old water heater with a gas- or propane-lit unit, you may be able to claim this tax credit too. In addition to gas and propane tank replacements, tankless water heaters are counted, so long as they have the "energy star" stamp of approval for energy efficiency. Because tankless water heaters often involve a bigger plumbing conversion process, some of the repairs and replacement services may count towards the tax credit as well.

When You File Your Taxes for the Year

When you file your taxes for the year, you will need to take the receipts for your replacement water heater and/or furnace, as well as any itemized information for the services rendered by the contractor to your tax prep agent. You will also need to itemize your taxes or you may not be able to claim this credit. If you have never itemized before, do not worry; it is not nearly as complicated as it sounds unless you own and operate several small businesses and have assets innumerable (which most people do not).

When it gets to the part where your furnace and/or water heater information is entered, your tax prep agent will enter the necessary numbers, and the software he or she uses will calculate the total credit based on the energy-saving upgrades you made. If your HVAC contractor did not give you an itemized receipt, then you will need to go back to him or her to get that, as it shows what work was done specifically and what the charges for those services were. The itemized bill helps determine which part of your expenses for these conversions or replacements are eligible for the credit.

For more help, contact a service like Mechanical Energy Systems.