I have made some home improvements to my primary residence. Can I deduct these from my income taxes. I was told I can but have not been able to find much on it. Is this possible and in there a limit?
I have built deck, poured driveway and remodeled bathroom. Are any or all of these possible deductions?
Thanks
Disclaimer: I am not a cpa this is just my opinion.
Ok, I believe that if it is your primary residence you can not deduct the improvements, however I am pretty sure you can add them to the cost basis of your home. So if you paid $100,000 for the home and put 10,000 in improvements then your new basis for when you sell the home is $110,000.
If it is an investment property I am almost certain you can depreciate all of the repairs over so many years.
Check with a cpa to be sure. I just wanted to give you a general idea of how i think it works.
I hope it helps.
Ramona is correct. These are all “capital improvements”. They are added to the cost basis of the property and could, potentially, reduce your capital gains when you sell…
Ramona is also correct on here assessment of these items on a rental property.
Keith
Thanks for the responses.
usual disclaimer- iam not a cpa nor do I practice low. according to my cpa here here in florida, we can deduct the sales tax. That means each and everytime you go to home depot/loweses or whereever, keep track of your receipts. It really adds up!!! It may be the same in your state, check with your cpa.
steve