In some cases, you can plan for a roof replacement, while other times the need for one springs up unexpectedly. When that happens, you may need to take out a loan to finance the expense of the project.
Fortunately, you may be able to deduct the amount of interest from a home loan from your taxes. However, there are some conditions to note. Read on as Northern Pacific Roofing, your trusted roofing contractor, explains these conditions:
1. The collateral of the home improvement loan must be your primary residence. This just means you have to own the home and reside in it. You must also be the borrower on the home improvement loan, and it must be secured by the property you’re improving.
2. You must use the proceeds to “substantially improve” the property that’s securing the loan. Here you must prove and show you actually spent the proceeds on home improvement before any tax deductions can be made.
Here are some common home improvement projects that are likely to be eligible for a tax deduction:
- Adding a room
- Replacing residential roofing
- Installing central air conditioning or a heating system
- Paving the driveway
- Completely rewiring the home
- Kitchen or a bathroom remodel
- Adding new siding
- Insulating the home
- Adding a deck, porch or patio
- Building a swimming pool
- Basement renovations
For your roofing concerns, invest in the services of a reputable roofing company. At Northern Pacific Roofing, we deal with different kinds of roofing projects. Call the hotline at (888) 919-8539 for a free, no-obligation estimate. We help residents of Petaluma, San Francisco and San Rafael, CA.