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At Renewal by Andersen of New Jersey & New York Metro replacement windows and patio doors, we understand that buying a home is one of the most important investments our friends and neighbors make. Whether you’re choosing to update your home windows out of necessity, you want to get rid of drafts, or you’re looking for a way to improve your home’s appearance, we’re here to help.
We’re in the final quarter of the year and many of you are already thinking about the upcoming tax season. If you aren’t, maybe you should. Accountants often recommend you take a look at your taxes four to six weeks before the calendar year ends to see if you can reduce your tax burden by making changes in your investment portfolio, donating to charitable organizations or restructuring other assets so you can claim tax credits. While we aren’t tax experts and we don’t offer financial advice, we wanted to take this opportunity to explain how home improvement projects, and specifically replacement window installation, may impact your 2015 tax return.
Borrowing for Home Improvements in New Jersey & New York
Whether you’re planning to replace one or two damaged or broken windows, or you want to replace every window in your home, financing options abound today. Interest rates are still low, and financial institutions (banks, credit unions and mortgage lenders) are offering a plethora of loan products you may access to upgrade your New Jersey or Metropolitan New York home.
Here are three popular options that might work for your family, depending on your circumstances and improvement vision.
1. If you’re buying a home and you want to replace windows and patio doors to improve energy efficiency, you might consider a “purchase and renovate loan.” These loans typically only have one application, one monthly payment, one closing and one fee package, so they can save you money on the extras.
2. If you are thinking about refinancing your home to access equity, but you have a low home equity balance, a “refinance and rehabilitate” loan may be a great option.
3. If you’re looking for tax incentives, interest on home equity lines of credit may be tax deductible. IRS Publication 936 provides information about allowable interest deductions for mortgage and home equity loans, but the updated version isn’t normally available until just before the new tax season begins. You can review the current rules and then ask your tax accountant if current or anticipated revisions will influence your eligibility and tax benefits.
Planning and Budgeting for 2016: Repair, Replace & Renovate
Shifting investments and assets at the close of the year can significantly impact your tax liability. But, planning for the new year is equally as important. Congress is always revising and tweaking the tax code, but your income and expenses don’t necessarily change drastically just because the calendar announces a new 12-month period.
A review during the last quarter of the year may reveal you aren’t paying enough taxes during the year, which means you have to write a check on April 15th. On the other hand, you may be having too much withheld from your paycheck every week (looking for a big refund when you file). While a big refund is fun to get, the IRS holds your money interest free during the year. While savings account interest rates aren’t very high right now, you could be using that money to install new windows and patio doors that could save you between 10 and 20 percent on your heating and air conditioning bills (depending on the condition of your current windows and home’s overall structural integrity). Wouldn’t you rather have access to your money when you need it instead of waiting until tax season?
Want to learn more about your home improvement project and ways you can save money by installing replacement windows and patio doors? You don’t have to file your 1040 for another few months, but you only have a few weeks to make adjustments that could lower your 2015 tax burden.
We can’t help you review your finances, but we’d love to tell you about our beautiful, high-performance window styles that allow you to save money on utility bills and increase the resale value of your home. Give us a call toll free at (866) 609-5033 and ask about our financing program or fill in the short form on this page and we’ll give you a call to answer your questions about replacement windows and patio door options for your New Jersey or Metropolitan New York home.
Learn Everything You Need to Know BEFORE Buying Replacement Windows