The end of the year is approaching. That means tax season is closer than you think. Did you know your Prescott bathroom remodel may be tax-deductible? Here are some things to keep in mind as you plan and complete this important home renovation.
What Makes a Home Bathroom Remodel Tax Deductible?
The key factor in whether a home bathroom remodel is tax-deductible is whether or not it is a medical expense. According to Geico Living, this could include “the cost of installing entrance or exit ramps, modifying bathrooms, lowering cabinets, widening doors and hallways, and adding handrails, among others, are home improvements that can be deducted as medical expenses”.
If you or someone you live with has a medical diagnosis that impacts mobility, you probably need to modify your home to make full use of it. Pre-built homes tend not to be accessible for mobility equipment, and especially not the bathrooms. If you need to widen bathroom doorways, install grab bars, or custom-build a shower you can safely use, bathroom remodeling expenses that allow for that may be tax-deductible.
Aesthetic selections and preferences won’t fall in the deductible category, but any deductions will help alleviate the overall expense of making your home safer and more livable. Generally, these are the criteria for tax-deductible bathroom modifications:
- Remodels made for a medical purpose may qualify as medical expenses if the required criteria are met.
- ADA-compliant improvements include adding grab bars, installing walk-in tubs, adding handrails, widening doors, and installing exit ramps.
- A doctor must prescribe the modifications as medically necessary.
- The deduction applies only if your unreimbursed medical expenses exceed 7.5% of your Adjusted Gross Income (AGI).
- Only the cost beyond any increase in home value is tax-deductible.
Note: None of this information is meant to be used as or to replace legal, tax, or financial advice. We’re sharing this for informational purposes only. If you have more detailed questions, we suggest consulting with a legal expert, a tax professional, or both.
What About Energy Efficiency?
There are a number of improvements to home energy efficiency that may qualify for tax credits. In order to know if you qualify, it’s important to check with the IRS (or ask your tax professional to do so).
They have detailed information about what kinds of energy-efficient upgrades are eligible for tax credits, what brands to look for (if upgrading appliances or fixtures), and more. Regardless of whether they’re eligible for the credit, these improvements are a great investment in our area, where it’s important to be water-wise. EnergyStar models are a good starting point.
Your Source for Safe, Affordable Bathroom Upgrades
No matter their mobility needs, everyone deserves a more beautiful bathroom. Our home renovation experts love personalizing each Prescott bathroom remodel project to homeowners’ needs and preferences. If you need bathroom upgrades to improve accessibility, we’d be happy to help. We can install grab bars, customize tubs and showers, widen doorways, and more. Contact our team today to get your questions answered and your project scheduled.