Homeowner Tax Breaks

You may be feeling a little left out if you are not a first time home buyer, since you don't qualify for the $8,000 tax credit. Luckily, there are lots of other ways you can get money back from the IRS if you already own a home, or are selling your present house and moving into another one. If you are looking to make your home more energy efficient, or more desirable to eco-conscious buyers, this is your year to make some big upgrades! Congress lifted a $3000 cap on a 30% tax credit for geothermal heat pumps. Since they usually cost about $20,000, it makes it very desirable to get one installed now. Solar hot water systems are also eligible for 30% tax credits, and they can cost between $6,000 and $10,000. While those might seem like extreme measures for many, upgrading windows, doors, and roofs are a part of normal maintenance and cosmetic improvements to any home. Just as in 2007, this year you can get a 30% tax credit for up $5,000, as long as you can prove that your improvements are meant to last more than five years. Whether you make a big investment in changing how your home works, or just replacing a worn out roof or tired front door, the government is trying to make it worth your while. Your home, either new to you or where your family has lived for many years, is the most valuable asset you have, so taking care of it is taking care of yourself and your loved ones. First time home buyers, don't feel neglected, you can also take advantage of these credits on top of your special $8000 on the home you purchase this year!