Not everyone is comfortable or confident when talking about taxes. It’s understandable as it can be very confusing. Add to it all the recent changes made and it’s enough to make even someone tax-savvy questioning their knowledge. Find out if the kitchen remodeling you’re planning is deductible or if it’s just another myth like the ones we’ll tell you about here.
Myth # 1: Moving Expenses Are Deductible
Up until recently, a portion of your moving expenses could be deducted if you relocate for work. But it is only applicable if you move no less than 50 miles from your former home. With the new tax bill, however, you won’t be able to deduct any amount for your moving expenses – that is, unless you are an active member of the armed forces.
Myth # 2: Home Improvements Are Deductible
Unless your house is also a rental property, most home improvements are non-deductible. So no, the cost of your bathroom remodeling can’t be deducted.
There are some projects that you can deduct and those are the ones that are done for medical purposes. These may include building ramps, adding lifts, installing support bars, and more. Note that you would need to secure a note from your doctor proving that these projects are necessary.
You may be able to deduct such projects as cabinet resurfacing and repainting if you did them to sell your home. Those can be deducted as selling expenses but they have to be done within 90 days of the closing day.
Myth # 3: There Is No Mortgage Interest Deduction Anymore
This is not entirely true. If you purchased your home before the 15th of December 2017 you are still covered by old tax laws, so you can deduct up to $1 million from the interest on your loans. If you purchased your house after that date, the amount that can be deducted maxes out at $750,000.
Myth #4 No More Property Tax Deductions
Not true! There are some changes, however. Before, you could deduct property taxes as well as state and city taxes in their entirety. With the new tax plan, while these taxes remain deductible, you can only get a deduction of up to $10,000 per annum.
Myth # 5: Working From Home Means You Can Deduct a Home Office
Not many people know how this really works. To be able to get a deduction for a home office, there must be a specific area in the house that is solely used regularly for business and the primary site for said business.
That means, if you want this deduction, you should be willing to transform one of the rooms in your house into a dedicated work area. Also, note that only those who fall under the self-employed category can get this deduction.
These are just some of the tax myths that many homeowners believe. To be sure that you know everything you need to know regarding your taxes, read up and ask people who are professionals in such things.
Should you decide that you do need that home improvement project you have in mind, whether or not it’s deductible, give us a call at (772) 200-2625 or (561) 935-3915. DreamMaker Bath & Kitchen serves Jupiter, FL, and its neighboring areas.
