Installing Replacement Windows in Your Long Island Home Now Help You Save on Taxes in April?

It’s November, and many of our Renewal by Andersen of Long Island replacement windows and patio doors customers are thinking ahead to the holiday season. The last quarter of the year is a busy, fun-filled, exciting time for most of us. Parents throughout Long Island may be scrambling to make child care arrangements for the kids during the winter break from school. Some of you are probably browsing decorating magazines and online design websites to get a few ideas about updating your interior décor with a festive flair.

But, have you thought about how installing replacement windows now, before 2015 fades into the annals of history, would impact your taxes? Probably not. Most people don’t associate tax season with this time of year, but perhaps you should. Below are a couple of reasons why.

Investing in Home Improvements as a Financial Strategy

If you’re planning on selling your home anytime soon, deciding whether to repair loose shingles versus replacing the whole roof or installing replacement windows and patio doors to improve both the appearance and energy efficiency, this is a good time to get your project planning started. Certain home improvements, like updating home windows and adding a mudroom aren’t direct deductions on your yearly tax return, but if you keep your receipts, you’ll be able to reduce your tax liability when you sell your home. New rules for 2015 don’t give a complete list of eligible capital investment improvements, however ENERGY STAR labeled appliances and most upgrades (not including repairs like painting your walls and replacing a damaged window pane) will affect your tax basis and could cut your taxable profit when you sell your house.

Financing Replacement Windows for Tax Benefits

How you choose to pay for your new replacement windows or patio doors may also significantly impact your tax liability. IRS Publication 936 explains the rules about deducting mortgage, home equity and home improving loan interest. We recommend you talk to your accountant or tax advisor about the best loan product for your situation. Banks and credit unions often provide free access for their customers to independent financial consultants that can help you structure a loan package to your advantage. Even though the cost of replacing your aging, drafty windows isn’t fully deductible, the interest you pay on a loan may be. It is definitely worth looking into while you still have a few weeks before the end of the year.

While most homeowners this time of year are thinking about seasonal parties, hitting the ski slopes during school break and spending time gathered around the holiday table with friends and family, the last few weeks of the year provide ample opportunities to save money on your taxes.

Here are three tips to help you get the most from your tax-cutting efforts this year.

1. If you’d rather support a favorite charity than write a check to Uncle Sam, do it before December 31st rolls around.
2. Talk to your tax advisor or personal banker about loan products and new IRS rules for 2015.
3. Track your expenses. Set up a digital or paper file system to track your expenses and keep up with receipts. It’s a good idea to keep every receipt (or scan a copy into your digital file) to track you deductibles. It’s always better to have too many than not enough. Record the improvement, products/services purchased, and the date of the activity.

People who operate a small business or rent out a portion of their home may be able to depreciate a portion of their upgrade costs and/or interest on home improvement loans, too. If you can carve out some time to sit down with your financial advisor between now and the end of the year, you may find other tax saving opportunities you never knew about.

Renewal by Andersen of Long Island Replacement Windows & Tax Benefits

Saving on your taxes isn’t the only, or even the primary, reason to consider scheduling an appointment with one of our professional replacement window consultants. Aging windows that leak air and moisture don’t just look bad, they cost you money in the form of higher heating and air conditioning bills and lost property value. It would be a pleasure to show you our portfolio of home improvement products to enhance the energy efficiency and beauty in your Long Island home.

Pre-Season To-Do List:
• Plan your holiday decorations
• Talk to financial advisor about tax deductions
• Call (866) 609-5033 (or fill in the short form on this page) to schedule a free in-home replacement window or patio door consultation

 

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