In 2006, I took out a home equity loan and used the money for home improvements. **New insulation, siding, windows, & doors**. How much of this can I deduct on my taxes? Can I also claim the interest I paid on my home equity loan?
2007-01-25 01:10:17 · 3 answers · asked by christina c 2 in Business & Finance ➔ Taxes ➔ United States
you can deduct the interest if its a second mortgage loan. costs no but talk to power supply company to if there are tax breaks from them maybe even your city!
2007-01-25 01:18:51 · answer #1 · answered by mjoeg 2 · 0⤊ 0⤋
You are able to deduct up to 10% for the cost of the insulation, windows, doors, not sure on the siding. Also I think there is a max of up to 300 or 500 not sure. I also think it is a tax credit not deduction. You can't deduct the cost to install them. But you cen dedcut the interest on the home equity loan.
2007-01-25 03:27:10 · answer #2 · answered by todd s 2 · 0⤊ 0⤋
Yes, the interest is deductable.
The purchases are not deductable but "may" qualify for a energy credit. The credit is relatively small and is calculated on Form 5695.
http://www.irs.gov/pub/irs-pdf/f5695.pdf
2007-01-25 01:24:07 · answer #3 · answered by Wayne Z 7 · 0⤊ 0⤋