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Eligible deductions
I installed a new air condition system that is energy efficient. Can I claim so kind of deduction?
Also, I refinanced my home, are there any expenses I can claim?
MarilynGAnswer
Alumni - Intuit
January 27, 2022
For this credit, the IRS distinguishes between two kinds of upgrades.
The second category is "residential energy property costs." It includes:
- Electric heat pumps
- Electric heat pump water heaters
- Central air conditioning systems
- Natural gas, propane or oil water heaters
- Stoves that use biomass fuel
- Natural gas, propane or oil furnaces
- Natural gas, propane or oil hot water boilers
- Advanced circulating fans for natural gas, propane or oil furnaces
You can claim a tax credit for 10% of the cost of qualified energy efficiency improvements and 100% of residential energy property costs. This credit is worth a maximum of $500 for all years combined, from 2006 to its expiration.
When refinancing a mortgage to get a lower interest rate or obtain more favorable loan terms, you're really just taking out a new loan and using the money to pay off your existing home loan.
In general, the same tax deductions are available when you're refinancing a mortgage as when you're taking out a mortgage to buy a home.
Click this link for a detailed article on what refinancing costs you can or cannot deduct.
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