A kitchen remodel is probably the last thing on your mind as the holidays are in full swing, kids are home from school and you’re hustling to get gifts wrapped, family entertained and dinners cooked. However, December is your last month to snag some tax credits (and possibly write-offs) for 2016.
Every year, the IRS can change the rules when it comes to energy efficiency credits. You don’t want to miss out on the 2016 perks, especially when your kitchen is such a hot spot for benefits.
A kitchen remodel can include a bevy of energy efficiency upgrades, especially if you’re complementing new stone counters with Energy Star appliances. For 2016, the Residential Energy Efficiency Property Credit includes perks for solar electric items, solar water heaters, fuel cell property and geothermal heat pumps.
How Kitchen Remodels Help Your Financial Health
Is it savvy to upgrade to marble or granite countertops as part of your kitchen remodel? According to real estate brokers and KDVR news, “gourmet kitchens sell homes,” and stone countertops are one of the most in-demand aspects of a luxury kitchen.
If you want to improve your home’s value, or if you plan to sell in 2017, upgrading to stone counters can provide a decent ROI.
Prioritizing a kitchen remodel during December can also mean last-minute holiday deals. Plus, if you’re a small-business owner, freelancer or sole proprietor who works at least part-time from home, a portion of your kitchen remodel may qualify for a tax write-off. Check with your CPA to make sure you get as many tax benefits for 2016 as possible.
Home Renovation Credits
In addition to the energy efficiency tax credits, you might also be able to snag some tax benefits if you’re purchasing a home that you’d like to renovate. Buying in winter is a wise move, since it’s the offseason, and you can often get a better price at this time.
You can use your mortgage to make home improvements, including a kitchen renovation, as long as your acquisition costs include the cost of a renovation. Work with a buyer’s agent, and be sure your CPA knows about the interest for the kitchen renovation part of your mortgage, because that portion falls under “mortgage interest deduction.”
Finally, you can also deduct home and kitchen renovations deemed medically necessary. Common examples include building ramps to the doorstep or widening doors to allow wheelchair access. Other changes include lowering countertops, which can be upgraded to stone in the process. Again, have a reputable CPA in your corner, and take advantage of all the deductions — medically necessary or otherwise — that you may qualify for.
Ready to add a little more excitement to the holidays? Call Intermountain Stone & Marble for all your kitchen renovation wishes.