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

Many home improvements and home upgrades can be counted towards reducing your income if you meet some special requirements. Sometimes you need to operate a business and serve customers in your home to be eligible for these credits, but there are other deductions you can use even if you do not work out of your house. The improvements you make to your house can qualify for income tax deductions or credits depending upon the cost of the project, the need for the home improvement and your overall income situation. Some people have heard about the new energy efficiency tax credits, but you should consider some of the expenses of other various home improvement projects too.

Tax deduction for landscaping - You probably won’t be able to deduct the entire amount, but rather, you would have to deduct part of the expense in proportion to how much your business and living areas share the same space. This is only one of the many possible deductions you can use if you really run your business out of your home. A while ago tax courts ruled that if you run your own business and serve clients regularly at your house you may be able to deduct some of your landscaping costs as a business expense because it makes your business more likely to succeed.

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 solid medical reason to use a pool. You should also know that the Internal Revenue Service considers a swimming pool and a spa to be the same thing. In one ruling a gentleman with decreased breathing capacity used a pool to exercise and increase his lung strength. Because he used the pool more than his family he was allowed to deduct part of the expenses as a medical expense. Financing a swimming pool for health reasons may also increase your chances of qualifying for a pool loan.Other health-related devices for the house such as ramps for wheelchairs might also be eligible for a deduction.

Tax deductions for new doors - Select Energy Star exterior doors that meet specific energy efficiency criteria are eligible for a tax credit of up to 30% of the cost of the door with a maximum tax credit amount of $1,500. If you’re going to put in new doors this year, make sure they meet the minimum requirements for this tax credit.

Not all home upgrades can be used for a home improvement tax credit, but with a little planning you can almost surely save some cash on your federal taxes and improve your home at the same time. The rules for income taxes are always changing, so it may be helpful to speak with a qualified tax professional about your home improvements to find out of you qualify for some of these special deductions. To be certain that you are deducting everything you can, you should take lots of notes, take a lot of photos and of course keep all your receipts for every possible home addition expense. If you are planning on finishing some home projects this year, you should really investigate the possible tax credits that might be available!