I hate to bear the bad news, and I don’t know how to break it to you.
While there are multiple tax benefits to owning a home, a home inspection deduction is not one of them. Throughout the escrow process, there are other expenses as well, such as credit reports, appraisals and closing costs. And while these expenses add up to the overall cost of the home, you cannot derive any tax benefits from them, unless it’s an investment property.
Are home inspections tax-deductible for businesses?
If you are buying a property to use it for rental income, the cost of home inspections will be tax-deductible. Therefore, when you buy an investment property, you must keep a record of the cost that you incur throughout the buying process. And when it comes to filing returns, you will be exempted from paying tax on these deductibles. A penny saved is a penny earned.
What tax benefits are homeowners entitled to?
Buying a new home is a significant investment. Even under the best circumstances, it seems like a huge money pit. As a buyer, you have several overheads to pay, and one of them is the closing cost. The closing cost has various tax-deductible and non-deductible components and is split between the buyer and the seller. The tax-deductible components are mortgage interest and the property tax paid. You can enjoy quite decent tax savings here.
Although homeowners don’t get to derive any tax benefits from the home inspection, that doesn’t make it any less important. A home inspection service starts at $200, which is a nominal amount as compared to hundreds of thousands of dollars you spend on buying a home. Also, when the detailed inspection report comes through, you can negotiate the price based on various issues outlined by the inspector. This is where you could save more than any tax exemption.
If you are planning to buy a property, let Alpha Building Inspections provide comprehensive inspection service to guide you towards an informed buying decision and save a great deal of money along the way.
Are Home Inspections Tax Deductible
