Home Repairs Tax-Deductible?
zombie boy 2000
Posts: 6,641
I guess the title of the thread says it all...
Are home repairs tax-deductible?
Between replacing the roof, water heater, and finishing the hardwood floors all in the last two months, it would be nice to know that I'm getting a lil' cheddar back from the US Gov.
Are home repairs tax-deductible?
Between replacing the roof, water heater, and finishing the hardwood floors all in the last two months, it would be nice to know that I'm getting a lil' cheddar back from the US Gov.
I never had it like this where I grew up. But I send my kids here because the fact is you go to one of the best schools in the country: Rushmore. Now, for some of you it doesn't matter. You were born rich and you're going to stay rich. But here's my advice to the rest of you: Take dead aim on the rich boys. Get them in the crosshairs and take them down. Just remember, they can buy anything but they can't buy backbone. Don't let them forget it. Thank you.Herman Blume - Rushmore
Post edited by zombie boy 2000 on
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I'm pretty sure they're not.
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You would think... but for some reason I seem to remember reading somewhere that they were. Maybe on a some list put out by HR Block reminding you of all the obscure tax write-offs that only they would know about and would put into use.
Or maybe it was all a wonderful, wonderful dream.I never had it like this where I grew up. But I send my kids here because the fact is you go to one of the best schools in the country: Rushmore. Now, for some of you it doesn't matter. You were born rich and you're going to stay rich. But here's my advice to the rest of you: Take dead aim on the rich boys. Get them in the crosshairs and take them down. Just remember, they can buy anything but they can't buy backbone. Don't let them forget it. Thank you.Herman Blume - Rushmore -
If you took out a home equity loan to pay for the repairs, it should be deductible. Otherwise, I think you're out of luck.
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Home repairs are not deductible, but they probably raise the value of your house when you sell..
and home improvements are deductible under certain conditions...Pioneer Elite VSX-53, Polk RT800i fronts, Polk CS400i center, FX500i surround, Velodyne sub -
Though I think they're pretty self-explanatory, please give me an example of both.I never had it like this where I grew up. But I send my kids here because the fact is you go to one of the best schools in the country: Rushmore. Now, for some of you it doesn't matter. You were born rich and you're going to stay rich. But here's my advice to the rest of you: Take dead aim on the rich boys. Get them in the crosshairs and take them down. Just remember, they can buy anything but they can't buy backbone. Don't let them forget it. Thank you.Herman Blume - Rushmore
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As I recalled from my previous accountant's life, I believed in both cases above you can use those, under certain conditions, to adjust your cost basis, when you sell your house. Home improvements for sure (keep those receipts), home repairs (which you can argue that they improved the house). Net net, it reduces the amount of your gain, when you sell the house.I am sorry, I have no opinion on the matter. I am sure you do. So, don't mind me, I just want to talk audio and pie.
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Your new water heater is likely tax deductible if it was installed this year. This year and next year energy saving home improvements are tax deductible.
Not sure about anything else, but I would like to know, I've done a lot of work too.Sony KDL-40V2500 HDTV, Rotel RSX-1067 Receiver, Sony BDP-S550 Blu-ray, Slim Devices Squeezebox, Polk RTi6, CSi3 & R15, DIY sub with Atlas 15 -
FWIW-
Home repairs/improvements aren't tax-deductible. They do lower your homes' "basis" when you sell it though, meaning you can deduct the costs of any improvements to lower your profit margin when you sell.
> Price house sold for - initial cost+improvements = capital gain
However, married couples who sell their primary residence are tax-exempt
for up to $500,000 in gains, so they won't be paying any taxes on up to that amount of profit anyway, so it may be overkill to save all those records, other
than for warranty purposes.
I believe home improvements are deductible only in cases where you use part of your home for business, but I would ask an accountant about that first!
Also, at least in NY, capital improvements to your home, such as a new roof,
heating/AC system, etc. are exempt from any state sales tax, so make sure
any contractor you hire doesn't try to add sales tax to an estimate. Again, check with your state/local gov't. offices first.
Just to be sure, I will ask someone when I go into work tonight!
Sorry, polkatese... I pretty much echoed your input.So, are you willing to put forth a little effort or are you happy sitting in your skeptical poo pile?
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Thanks guys...
good info here.I never had it like this where I grew up. But I send my kids here because the fact is you go to one of the best schools in the country: Rushmore. Now, for some of you it doesn't matter. You were born rich and you're going to stay rich. But here's my advice to the rest of you: Take dead aim on the rich boys. Get them in the crosshairs and take them down. Just remember, they can buy anything but they can't buy backbone. Don't let them forget it. Thank you.Herman Blume - Rushmore -
zombie boy 2000 wrote:Thanks guys...
good info here.
agreed. i'm in the process of ripping up my kitchen, so this is valuable to me as well. -
I just called my mom who this year replaced the roof on the house and also installed a new septic system. She said that the roof was not tax deductable but the septic system definately was.
I am not sure what distinguishes the two but maybe someone else can explain it. -
Home improvements ARE NOT tax deductible. Home improvements may be used to increase the BASIS of your home. IE: the amount your home costs. When you sell your home the increased value may be subject to taxes. That amount is determined by deducting the basis from the sales price. Lets say you bought the home for $100,000 and spent $50,000 to improve the house (adding a room, a pool, landscaping is an improvement - replacing or repairing stuff already there is not). You then sell the house for $200,000. Your basis is now $150,000 and only $50,000 is considered as a gain. There are ways to defer this amount and there is also a lifetime exemption amount.
Home improvements increase the basis of the home.
Home repair does not increase the basis unless your somehow improve the property. Replacing worn out carpet does not count as an improvement. Replacing worn out carpet with a hardwood floor may count as an improvement for the value over and above what it would have cost for the carpet.
When you borrow the money to improve the home the interest is tax deductible regardless of the amount. There are usually limitations to home equity loan interest deductibility. It is a maximum of the interest of $100,000 or the equity in your home (equity = fair market value less the balance of the purchase money debt on the home). The interest on home equity loans that meet these criteria is tax deductible regardless of the use of the funds. As I said, if the loan was to improve the home then the $100,000 limit does not apply. There are some imitation once the value of the home reaches $1,000,000 or greater."Just because youre offended doesnt mean youre right." - Ricky Gervais
"For those who believe, no proof is necessary. For those who don't believe, no proof is possible." - Stuart Chase
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Late to the party again. Others have got it right before I posted."Just because youre offended doesnt mean youre right." - Ricky Gervais
"For those who believe, no proof is necessary. For those who don't believe, no proof is possible." - Stuart Chase
"Consistency requires you to be as ignorant today as you were a year ago." - Bernard Berenson -
polrbehr wrote:FWIW-
Home repairs/improvements aren't tax-deductible. They do lower your homes' "basis" when you sell it though, meaning you can deduct the costs of any improvements to lower your profit margin when you sell.
The idea is right but it actually increases the basis. Basis = the cost. It lowers the gain."Just because youre offended doesnt mean youre right." - Ricky Gervais
"For those who believe, no proof is necessary. For those who don't believe, no proof is possible." - Stuart Chase
"Consistency requires you to be as ignorant today as you were a year ago." - Bernard Berenson -
This doesn't apply to me, but I'm curious - do the same rules apply if you own a rental property? IE you rent out a three-story house or something?If you will it, dude, it is no dream.
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I'd like to think of it as "fashionably late" Shackdaddy:D
Great info as well... thanks!I never had it like this where I grew up. But I send my kids here because the fact is you go to one of the best schools in the country: Rushmore. Now, for some of you it doesn't matter. You were born rich and you're going to stay rich. But here's my advice to the rest of you: Take dead aim on the rich boys. Get them in the crosshairs and take them down. Just remember, they can buy anything but they can't buy backbone. Don't let them forget it. Thank you.Herman Blume - Rushmore -
bobman1235 wrote:This doesn't apply to me, but I'm curious - do the same rules apply if you own a rental property? IE you rent out a three-story house or something?
Whole different set of rules. Repairs are expenses against income of the rental property. You have still have basis but there is also depreciation issues."Just because youre offended doesnt mean youre right." - Ricky Gervais
"For those who believe, no proof is necessary. For those who don't believe, no proof is possible." - Stuart Chase
"Consistency requires you to be as ignorant today as you were a year ago." - Bernard Berenson -
for rental property, yes, it is deductlible. it goes on the prifit and loss schedule for said rental property under repairs. along with the prop taxes, untilities, nearly everything. its a seperate schedule, just like if you had a business (non corp)Living Room 2 Channel -
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Energy saving home improvements, such as insulation, are tax deductible.tryrrthg wrote:Your new water heater is likely tax deductible if it was installed this year. This year and next year energy saving home improvements are tax deductible.
Not sure about anything else, but I would like to know, I've done a lot of work too. -
shack wrote:The idea is right but it actually increases the basis. Basis = the cost. It lowers the gain.
You are right, of course. I was typing too fast / not thinking enough, take your pick!
So, are you willing to put forth a little effort or are you happy sitting in your skeptical poo pile?
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