As you get ready for midyear tax planning, keep these lesser-known tax breaks in mind.
Residential energy credit. You can claim a 10% energy credit for qualified improvements (up to a lifetime maximum of $500) when you improve your home with insulation, windows, and certain types of roofing. This credit is presently set to expire after 2016.
Commercial building energy deduction. The above-the-line deduction for energy efficiency improvements to lighting, heating, cooling, ventilation, and hot water systems in your commercial building is currently available through December 31, 2016.
Straight-line depreciation for certain qualified assets. The 15-year straight-line depreciation deduction for qualified leasehold, restaurant, and retail improvements is now permanent.
Contact us for more suggestions for reducing your 2016 federal income tax bill