Home Renovation Tax Breaks: Are You at Risk? [Video]

Home Renovation Tax Breaks: Are You at Risk?

Millions of Americans took advantage of generous tax breaks for home renovations in recent years. But now, some homeowners could face penalties if they didn’t complete all the necessary paperwork.

The lure of tax credits and deductions for home improvements has been strong. Programs like the popular Superbonus, which allowed homeowners to deduct up to 110% of renovation costs, spurred a wave of home upgrades.But as with any tax incentive, there are rules and regulations.

“I read about potential fines and penalties for people who renovated their homes,” one concerned homeowner wrote. “I renovated in 2020 and have been deducting 50% of the costs on my taxes. What risks am I facing now? I hear I need to do something with the local property office, but I’m not sure what.”

This homeowner’s concerns are valid. While many homeowners who followed the proper procedures are in the clear, some might perhaps be at risk.