Many homeowners are used to using the interest they pay on their mortgage as a tax deduction, but there are actually a lot of different home improvement projects which may also make you eligible for a tax deduction, depending on the overall cost of the project and the circumstances surrounding it. Yes, you can usually deduct the amount of interest you pay on your mortgage or home equity loans, but there are also a multitude of home expenses and repairs you can use to lower your taxes if you meet certain criteria.

Many home improvements and home remodeling projects can be counted towards lowering your income if you meet some special requirements. Sometimes you need to run a business or meet clients in a part of your house to qualify for these deduction, but there are other deductions you can use even if you do not work out of your home. The changes you make to your house can be eligible for income tax deductions or credits depending upon the cost of the project, the reason for the home improvement and your overall income situation. A lot of people have heard about the new energy efficiency tax deductions, but you might want to also consider some of the expenses of other different home improvement projects too.

Tax deduction for landscaping – In the past tax courts ruled that if you run your own business and meet customers regularly at your house you may be able to deduct some of your lawn care bills as a business expense because it makes your business more viable. You probably won’t be able to subtract the entire amount, but rather, you would have to deduct part of the cost in proportion to how much your business and home share the same space. This is just one of the many possible deductions you can take if you truly operate your business from your home.

Pool tax deduction – Tax laws state that in some cases a portion of the expenses to put in a pool can be deducted from your taxes if there is a valid medical reason to use a pool. In one ruling a gentleman with decreased lung capacity used a swimming pool to exercise and increase his breathing strength. Because he used the swimming pool more than his family he was allowed to deduct part of the costs as a medical expense. You should also know that the Internal Revenue Service considers a pool and a spa to be the same sort of medical device. Other health-related devices for the home such as elevators for wheelchairs may also be eligible for a deduction. These deductions are important to keep in mind when you are applying for a swimming pool loan because they can change how much you can afford.

Tax credits for new windows – If you’re planning to upgrade and replace your home’s old windows with new energy efficient ones, now is the time to do it. There are now tax creditsin place for the 30% of the cost of eligible windows, up to a set amount of money for the next two years. Don’t forget that the windows themselves are approved for the tax credit but the labor required to install them is not eligible.

If you’re planning on finishing some home improvements this year, you should really investigate the possible tax credits that might be available! Not all home improvements qualify for tax credits, but with a little planning you can almost surely save some cash on your federal taxes and upgrade your home at the same time. The rules for income taxes are always changing, so it might be beneficial to speak with a qualified tax professional about your home improvements to find out of you qualify for some of these special credits. To be sure that you are deducting everything you can, you should take lots of notes, take plenty of photos and of course organize all your receipts for every possible home improvement expense.

Those are just some of the possible ways your home improvement expenses can save you money on your income taxes. If you really want all the details, then be sure to read our full guide to home improvement tax credits.