With the new year, comes new focus on our spending, bills and taxes. Now is a good time to start using some of these tips and best practices:
- Home Office Deduction. Starting in 2013, the home office standard deduction of $5.00 per square foot (up to 300 square feet) is allowed if you itemize deductions. Keep in mind that you won't realize a home depreciation deduction for the years you use this option.
- Make Improvements to increase your home energy efficiency: Pay for energy-efficiency upgrades before December 31st to take advantage of a federal tax credit for projects installing insulation and energy-saving air conditioners.
-For home improvement projects, donate your discarded items: If you are able to salvage the fixtures, appliances and windows and doors and donate them to organizations like Habitat for Humanity. You will receive a tax credit.
-Cleaning out the Closets: When preparing for a move or renovation, make sure you gather all of your unwanted personal items and donate to organizations like Pickupsforbreastcancer.
Michelle Farber Ross