Updating your roof may qualify you for a tax rebate.
With the rising costs of supplies and labor, homeowners often look for ways to subsidize the cost of renovations and repairs. A tax credit from the federal government is a great way to help subsidize these costs. For example, in 2010, the government offered a tax credit of $1,500 for roof repairs. It is important to understand that tax credit qualifications, payouts and restrictions change yearly so it is important to complete research before planning your roofing repairs. Does this Spark an idea?
Instructions
1. Speak with your contractor regarding the changes you plan to make to your roof. Often they will know the current tax breaks available to homeowners and what qualifications you must meet to qualify for the tax credit. If your contractor does not know, consult with your tax adviser. They receive documents from the government each year outlining tax incentives and rebates. As a third alternative for finding out what rebates are available to you, research the Energy Star website.
2. Request an itemized description of the materials used to repair or replace tour roof, the cost for each item and an itemized cost of labor from your contractor. You need this information to know how much you spend and how much you can claim on your tax forms. Often, government rebates have a cap. For example, you can deduct 10 percent of the material costs but not the labor costs.
3. File tax form "IRS Form 5695" and fill in the necessary boxes with your claimed tax credit. Again, make sure you follow the outlined requirements for the tax credit to ensure you do not have any issues with an audit. As a note, the tax form 5695 could change. Always consult your tax adviser to ensure you obtain the correct form.
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