You can't deduct any costs for improving your personal residence unless you are using part of your home for business. Any costs of improvements to your home can be added to your home's basis for the purpose of calculating any gain or loss when you sell the home.
For 2022, the available tax credits for energy-saving devices and improvements include the Energy Efficient Home Improvement Credit (EEHIC). An insulated garage door may qualify for the credit.
The revamped credit offers a maximum value of $1,200 per year from 2023 through 2032 and can go toward investments like qualified energy efficiency improvements made to domestic residences. Such examples include qualified exterior windows, doors and skylights, and building envelope components.
Separately, under a different $2,000 per year limit, the credit covers the equipment cost and installation of new energy-intensive appliances like heat pumps and heat pump water heaters, biomass stoves and boilers.
Lastly, as part of the $1,200 credit maximum per year, it can cover up to $150 per year for the cost of performing a home energy audit to identify areas of energy efficiency improvement in your home.
The following energy-efficient home improvements are included among those eligible for the Energy Efficient Home Improvement Credit:
- Building envelope components satisfying the energy efficiency requirements in Q1 under the Energy Efficiency Requirements section:
- exterior doors (30% of costs up to $250 per door, up to a total of $500)
See this IRS article and this one for more information.
See this TurboTax article for additional information. Enter these items under Deductions & Credits in the Home Energy Credits section:
- Select Yes to the question about making energy-saving improvements
- Click Continue
- Answer the questions about your living arrangement and home
- Continue until you see the entry screen for the item that applies.
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