More Dreaded Than Summer In Phoenix!

Whether we like it or not, April 15th is quickly approaching. Time to get those taxes done. Taxes aren’t our area of expertise, but did you know there are many deductions and credits you can take advantage of for being energy efficient?

There are a number of reasons to make your home more energy efficient, but one of the benefits is to deduct expenses and receive credits from energy efficiency upgrades. The IRS’ website states, “Residential energy property is any of the following.

- Certain electric heat pump water heaters; electric heat pumps; central air conditioners; natural gas propane, or oil water heater; and stoves that use biomass fuel.

- Qualified natural gas, propane, or oil furnaces; and qualified natural gas, propane, or oil hot water boilers.

- Certain advanced main air circulating fans used in natural gas, propane, or oil furnaces."

As far as energy efficient property credits, "you may be able to take a credit of 30% of your costs of qualified solar electric property, solar water heating property, fuel cell property, small wind energy property, and geothermal heat pump property. The credit amount for costs paid for qualified fuel cell property is limited to $500 for each one-half kilowatt of capacity of the property."

But not all tax deductions for residential property are strictly energy efficiency upgrades. There are other household expenses you can deduct from your taxes if you have relocated due to employment.

If you meet the requirements, these deductions can apply not only to expenses related to the actual moving of your household items and members, but you can deduct certain costs associated with disconnecting and connecting household utilities.

"There are often household expenses that many have no idea can be deducted from your taxes. Take the time to go over your previous year tax records to see if you missed anything. You may find there are a number of things you missed that you could also be deducting this year." http://www.wahm.com/articles/tips-for-the-wahm-how-to-deduct-household-expenses-from-your-taxes.html

Please consult with a tax pro and don't say you did your taxes strictly based on what we found. We're experts in other areas, not taxes. But if you missed out on tax credits and deductions because you haven't made energy efficiency upgrades to your residential property, we are the pros to talk to! Give us a call.