deductions in multiple ways. You can use a home improvement loan to finance the cost of improvements on your primary or secondary home which will then likely qualify you for mortgage interest deductions. The interest on a home improvement loan is deductible in full, up to a sum of $100,000 in debt. Be sure to keep track of home improvement costs. When you sell the property, if the selling price of your home is more than you spent to procure it, the extra amount will be considered taxable income. You can add the improvement cost to the value of your property to reduce the amount of this taxable income. This can help you save money in taxes following the sale. • Home office deduction. If you are self-employed and work from home, the amount of space in your home that’s dedicated towards business activities is tax deductible. This deduction will include loan interest, insurance payments, utilities, repairs, and more. However, with the TCJA going into effect for 2018 - 2025, people who are not filing as self-employed are ineligible for the deduction. There are other specific guidelines for taking advantage of this deduction, so check with your professional tax preparer before filing. • Home energy tax credits. The IRS continues to incentivize homeowners who invest in eco-friendly home improvements. Homeowners can claim the Energy Efficient Home Improvement Credit, which applies to upgrades like exterior doors, windows, insulation, and HVAC systems. From 2023 through 2032, this credit allows for 30% of the total improvement cost annually, up to a maximum of $1,200 each year. Additionally, the
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