Your house not only protects you from the elements but it can also provide some unexpected tax deductions in many cases. There is still time to complete a few things which can lower the amount you pay for income taxes this year. The tail end of the year brings often holiday cheer but it can also be a great time for some last-minute money saving.

Here are a few great ways to use your house to reduce your taxes:

You will almost definitely need to work with your doctor to be sure medical home improvements are eligible for tax reductions before you start any project. Medical related home additions: Your home must be a place where you can stay healthy. If a family member in your house needs a wheelchair then you may be able to upgrade your home and the expenses may be fully deductible.

Improving your home’s energy efficiency: Making your home more energy efficient can save you some serious cash! The national government is promoting energy saving home upgrades with a lot of different tax incentives. Upgrading to energy efficient doors, windows or water heaters may all qualify for special tax credits.

Home loan interest paid: If you’re looking to purchase a new house then you may be eligible for the extended home buyer’s tax program. For many homeowners the yearly interest that is paid on a mortgage is tax deductible. Even the interest paid on a HELOC could be tax deductible in certain situations.

Before you start any home upgrades for tax reasons you should consult with a qualified tax accountant. You can probably take advantage of these tax deductions all through the year. You’ll need to keep accurate records and not lose any receipts or important paperwork.

Looking for more easy ways to save money with your house? You can read about more home remodeling tax deductions and even learn how to do some easy home improvement projects on your own!

This entry was posted on Sunday, February 28th, 2010 at 3:28 am and is filed under Finance.