Hello - I recently purchased my first home and want to make sure I can project my overall tax burden ahead of time. I plan to do itemized deductions this year since it will be higher than the standard deductions. Things in particular that I know can impact my tax burden/deductions that I can use some help understanding in advance of next year's tax season include:
- Energy Efficient Renovations - I believe there are tax credits or deductions for making energy efficient renovations, what do I need to hold onto/document for tax season and what are the available deductions?
- Additional Renter - I am moving into the house as my primary residence, but will be renting out the second bedroom. I've read conflicting reports about what expenses I can deduct for a home being partially rented and can use guidance. For context, I am doing major renovations throughout the home (including floors, windows, A/C, etc.) in the common areas and in the renter guest bedroom.
- General Renovations/Repairs - I'm also not certain how to best factor in deductions vs. capitalization for the updates I'm making to the home and how that impacts this year's tax burden as well as future capital gains taxes when I eventually sell my home. Some renovations are cosmetic, but many (broken windows, replacing floors with cracks/issues) fall more into the repair category.
I appreciate your help!
