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Returning Member
posted Jan 26, 2022 4:09:45 PM

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?

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1 Best answer
Employee Tax Expert
Jan 26, 2022 4:30:49 PM

 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.

1 Replies
Employee Tax Expert
Jan 26, 2022 4:30:49 PM

 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.