Are home improvements, such as a waterfall/pond.... Tax Deductibile?
2006-10-01 20:58:12 · 8 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
Most are not deductible in the year you purchase (unless it's a business--i.e. rental property & those you expense or depreciate every year).
However this year there is an energy credit (small, for weatherproofing type improvements i.e. new windows). Or if something is medically necessary--& then it can usually be depreciated.
On your personal residence you can use improvements to offset gain when you sell--but it only matters if you have a gain in excess of $250K ($500K for a couple) because there's a one-time exemption up to that amount. And this would only come into play if you sold your house & didn't roll all the gain into a new house (i.e. the last house you sell).
2006-10-02 02:02:09 · answer #1 · answered by Dee 4 · 0⤊ 0⤋
No It's not however I hear there MAY BE an Energy saving credit from IRS coming to 2006 tax return, I'm not sure about the detail but I just install window and a burner with energy star so if it show up this year I'm going to look into it.
2006-10-02 01:25:04 · answer #2 · answered by Kenshin 5 · 0⤊ 0⤋
waterfall/pond are land improvements that are added to the basis of your home when you sell the property.
Home improvements are never tax deductible.
Home office expenses are only for those who actually have businesses in their home and meet the regulations for those deductions. Land improvments and maintenance can not be used as part of these deductions.
2006-10-02 07:30:06 · answer #3 · answered by dillon Y 3 · 1⤊ 0⤋
If this is your primary residence, sorry, no. They will reduce your capital gain (if any) when you sell the home.
There is one exclusion. Improvements that meet specifical medical requirements and ordered by a physician may be deductible as a medical expense.
If you have further questions, feel free to contact me via: http://www.slarson.com/contact or steve@slarson.com
Regards
Steve
2006-10-03 07:00:21 · answer #4 · answered by Anonymous · 0⤊ 0⤋
No. Well, yes but only if you have a qualified home office and then the improvement has to be depreciated over 15 years and at the home office rate. Otherwise its just an improvement to your home investment
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2006-10-02 04:01:59 · answer #6 · answered by stock_trade_expert 3 · 0⤊ 0⤋
no, but keep track of the cost of improvements to add to the basis of your house. You'll need that when you sell the house to compute the gain.
2006-10-02 02:07:38 · answer #7 · answered by porkchop 5 · 1⤊ 0⤋
no
if it is a rental property you own then yes or
if you took out a mortgage for home improvement
2006-10-01 21:08:44 · answer #8 · answered by buddhaboy 5 · 0⤊ 1⤋
This is your spending, not income.. of course not. To confirm, ask IRAS
2006-10-01 21:01:29 · answer #9 · answered by worrygirl 3 · 0⤊ 0⤋