Buying a new house or a property is expensive, and you want to do as much as you possibly can to ensure that you can scrape up some money to invest in your new home. Even if you decide to buy a modular home, which is cheaper than a normal home, your expenses are still going to skyrocket, but there are ways in which you can reduce those costs, even if it’s a little. You can get both tax credits and tax refund for many aspects of your modular home, so keep reading to find out more.
There are many aspects of modular homes that can easily be tax refundable, such as the property taxes, which are entirely tax-deductible. And that’s not all, for those that had to take a mortgage loan in order to build the modular home, they will have to pay the interest per month along with the loan’s principle. Now here’s the fun part, if the total loan equals to less than $1 million, then it is entirely tax deductible.
That has to be one of the best parts about owning a modular home. Additionally, for those that took a mortgage that amounts to over $1 million, then the interest that is to be paid on the first $1 million is the only thing that is deductible. That said, it is still a win-win situation for many, as they’re still able to save quite a lot of money in interest.
On top of that, if you have taken a construction loan for your modular home, you will also be able to refund the interest of that loan, but only if the construction duration is less than 24 months.
You will be able to get tax credits if you decide to use renewable energy to operate the electricity and water of your new home. If you use solar panels, for instance, as much as 30% of the entire system’s cost can be written off, but that will only happen if the construction of the system reaches completion before the 1st of January, 2017. The same rules apply for the solar water heaters.
However, in order to qualify for the tax credits for solar energy systems, the sun must produce at least half of the energy used at your house. As for residential wind turbines, as long as they produce no more than 100 kilowatts of energy, they can also be written off at 30%. Geothermal heat pumps are no different either, and can get you 30% off for the total installation and system cost. These systems can be quite expensive, which is why this is great. However, you must use a pump that is approved by Energy Star in order to qualify for the tax credit.
You can also get a full 100% written off on your tax credits for moving your furniture a long distance, but your new home needs to be at a distance of at most 50 miles to your work place. For more details on tax refunds and credits, check out http://modularhomeowners.com/modular-home-tax-credits-you-cant-afford-to-miss/