tax deductible?

Question

We need to change our carpet floor to hardwood floor, due to our daughter's allergy to the dust and other stuff in the carpet. Will the cost of this renovation is tax deductible? Thanks! -Betty

Answer 1

Improvements are NOT tax deductible.

Mortage interest and home equity interest is GENERALLY tax deductible.

The primary purpose must be medical Care.

If a capital expenditure for medical care also constitutes a permanent improvement or betterment of the taxpayers property, then the expenditure is deductible only to the extent that it exceeds the increase in the property's value.

It is all facts taken into account and you need not only the doctor's note but the value of the property before and after the improvement (cousin Bob's value does not count)

Answer 2

According to the IRS website, you can indeed deduct capital expenses for equipment or improvements to your home needed for medical care (see Publication 502).

Even if you don't take out a loan, it is possible that the improvement may be deductible on Schedule A of your tax return. If you can't itemize, then medical deductions won't do you any good anyway.

As to those answers discussing rental properties, that is really a different question. Since this would be considered a medical deduction, it goes on the Schedule A, not the Schedule E (where the rental goes). The IRS, being fun and quirky, has different rules for different forms and situations.

And yes, if you take out a mortgage to replace the floors, the interest is tax deductible. However, it would be deductible no matter what improvements you made to your home.

Answer 3

I think the only chance you have is to get a doctor to recommend changing the carpet, in which case it would be deductible as a medical expense. The medical expense would still be subject a 7.5% limitation of your adjusted gross income, which likely means you are going to be phased out of the deduction.

Someone posted that you could take a home equity loan out and replace the carpet. The interest you pay on the home equity loan, assuming your interest for the year is less than 1.1 million including the home equity loan, is tax deductible.

Answer 4

Betty, it is highly unlikely that the IRS will consider replacing a carpet as a valid medical expense.

However, if you can get your daughter's doctor to write a letter saying that the replacement is necessary to treat the allergy, you may have a good shot at trying to claim it.

In my own personal example, I was able to claim the purchase of an air cleaner on my taxes, as my doctor had written a note saying the device was needed for me to preserve health.

Of course, the amount of money involved with an air cleaner is nothing in comparison with a carpet replacement.

Best course of action would be to consult with a tax professional.

Answer 5

Making improvements to the home is not tax deductible. If the improvement is considered to add value to the home, then the basis of your home should be increased by this amount. This is important, as if you ever decide to rent the home, you will be able to base your depreciation on this increased basis value. Make sure that you keep your receipts to support your value.

Answer 6

Only the interest from the loan is tax deductible and not the whole loan sorry. If you don't need a loan, then No it is not tax deductable.

Answer 7

Yes, if you take a loan out for any home impovement it is always tax dedutable!!! Also any time u put your money back into your house it is tax deductible!

Answer 8

i own a duplex and the only thing that's tax deductible is the improvements done to the tenant side . if i paint my house ,i can only claim half the cost.

Answer 9

Yes, if it is advised by her doctor.

Answer 10

nope