Can I take home remodeling costs as a tax deduction?
Sep.08, 2010 in
Repair Tips
I did extensive work to my home I live in this summer..roof, windows, plumbing are they tax deductable?
5 Comments on “Can I take home remodeling costs as a tax deduction?”
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September 8th, 2010 at 6:55 pm
Do you have an office in your home or are you renting the house or a portion? The roof would be a substantilal improvment and cannot be deducted. You have to depreciate the roof, plumbing and may be the windows over time. The IRS is not specific, but I would say that it applies to the windows, especially if they are storm windows or energy efficient windows. You have to capitalize the cost. That means depreciate over a period of time as if the improvement were separate property.
If you do not have a home office nor rent the house or a portion thereof out, you only have one option. You would have to get some one to rent out a pay a large deposit. You could then make a portion of the large deposit income for last year. You have to report all the income, but you would get the deduction. That’s all I think of, unless you are a victim of hurricane Katrina. That’s a long story.
September 8th, 2010 at 6:55 pm
That would be wonderful if true.
You cannot deduct remodeling costs. If you installed any qualifying energy items, you may be eligible for an energy credit.
But that’s about it.
September 8th, 2010 at 6:55 pm
Not generally…
Unless part of the work qualifies as an energy credit.
Unless you use part of your home exclusively for business, then part of the cost can be depreciated…
Unless you rent out part of your home and it would be considered a business…
Save your receipts and add up the cost of the remodel because you can use it to add to the cost basis of your house. If you have a $50,000 house that won’t make any difference. But if you have a $500,000 house may kick you into a taxable house sale, then those costs will help you…
September 8th, 2010 at 6:55 pm
Generally, you cannot deduct home repairs or home improvements on your tax return in the current tax year.
Home improvements add to the value of your home, prolong its useful life, or adapt it to new uses. You add the cost of home improvements to the tax basis of your property.
However, you may be eligible for two credits. The non-business energy property credit and the residential energy efficient property credit if you made energy efficient improvements to your home. Particularly the roof and the windows "may" qualify.
See page 248 of IRS Publication 17 to see if you qualify.
September 8th, 2010 at 6:55 pm
all the above are on it as far as if its energy efficacy ….
also i am assuming you are itemizing meaning you can also put in the tax of your home building materials…. hopefully putting your state tax paid higher, so you wont have to put your state earned tax down …. resulting in having to account for your state tax refund next year as income