Eligible deductions

Forum|Forum|4 years ago
January 27, 2022
1 reply
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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?

Best answer by MarilynG

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.

MarilynGAnswer

Level 15

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

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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