Now that I own a home, what kind of home purchases are tax deductable?

Question

I would imagine home improvement stuff like paint to paint your house, but what about appliances and furniture, or anything else for your home??

Answer 1

Only your mortgage instrest is tax deductable.

If you use a portion of your home for business purposes, you may be able to take a home office deduction whether you are self-employed or an employee. Expenses that you may be able to deduct for business use of the home may include the business portion of real estate taxes, mortgage interest, rent, utilities, insurance, depreciation, painting and repairs.
You can claim this deduction for the business use of a part of your home only if you use that part of your home regularly and exclusively:

* As your principal place of business for any trade or business
* As a place to meet or deal with your patients, clients or customers in the normal course of your trade or business

Generally, the amount you can deduct depends on the percentage of your home that you used for business. Your deduction will be limited if your gross income from your business is less than your total business expenses.

If you use a separate structure not attached to your home for an exclusive and regular part of your business, you can deduct expenses related to it.

If you are self-employed, use Form 8829 to figure your home office deduction and report those deductions on line 30 of Schedule C, Form 1040. There are special rules for qualified daycare providers and for persons storing business inventory or product samples.

If you are an employee, you have additional requirements to meet. The regular and exclusive business use must be for the convenience of your employer.

Answer 2

The only thing deductible is the interest that you pay on your mortgage. If you spend any money to IMPROVE your house, you should keep that in a file. Remodeling, landscaping, etc. When you sell your house, you can add that amount to the cost of your house to increase the basis. Thus when you finally cash out at some point in your future, your basis will go up and prevent you from paying a large tax on the gain that you have from the sale of your house. None of the other things that you mentioned are deductible.

Answer 3

Home repairs / maintenance are NOT deductible. the only thing that will be deductible will be your mortgage interest and real estate taxes. Your Home Owners insurance isn't even deductible. The furniture etc is 100% personal. Sorry to be the bearer of bad news.

Answer 4

None. The interest on your mortgage and your property taxes are deductible, but that is it.

Save the receipts on your improvements. Some of them can get added in to your cost basis. When you sell, assuming you sell at a profit, you pay a capital gains tax on the difference between the net sales price (after brokerage fees) and your cost basis. So raising your cost basis is good for tax purposes.

Under current law, the first $250,000 ($500,000 for married filing jointly) is exempt from capital gains from the sale of your home. There is a two year holding period for the home to qualify.

Answer 5

The only way I know of to get a deduction for appliances and furniture are if they are "prescribed" by a doctor as necessary for your operation within the home. Like a whirlpool, sauna, lifts, etc.

Answer 6

nothing except mortgage interest and property tax are deductible. While the government would love for your house to look a nice color, they don't want to give you money to do it.

The only way I know of is if you own a home business and have a specific room dedicated to your office. Then you can deduct part of some of your bills (home repairs, utility bills, etc...)

Answer 7

Don't know about furniture, but I would think major appliances would be tax deductable, as well as windows, and whatever you do for landscaping