My husbands aunt, deeded a home to us, but it will not be officially in our name until her passing, however we have already renovated the home and moved into it. (it is on her property). Can we deduct any of the money we spent on fixing this house up. The papers leaving the house and land to my husband have been notorized and copies have been given to the remaining members of the family. Looking over the reciepts, we figure we have spent around ten thousand dollars on it so far.
2007-01-02 13:18:47 · 6 answers · asked by nonnie 2 in Business & Finance ➔ Taxes ➔ United States
No, you can't. Even if the house was in your name you couldn't, but keep the receipts. You might be able to use those receipts towards the cost basis if you decide to sell the house.
The only "fixing up" expenses that can be claimed on tax is changes to the house that are for medical reasons, such as widen doorways or making a bathroom handicap friendly.
2007-01-02 13:37:40 · answer #1 · answered by chelle8079 2 · 1⤊ 0⤋
The ownership of the home is not the issue here. Renovation costs of your personal residence are not tax deductible whether you own the home or not.
You should keep records of the costs however, in case you convert the house to business use. Then you will be able to recover these costs through business depreciation.
2007-01-02 14:57:05 · answer #2 · answered by ninasgramma 7 · 1⤊ 0⤋
Nope. If the home is not in your name and not your primary residence that it has no tax implications for you. The only tax basis this money spent MIGHT have is as a gift, and even then since it isn't a charitable gift, the money would not change your tax situation (if you earned the money and paid taxes on it when it was earned, you owe those taxes, etc).
2007-01-02 13:39:12 · answer #3 · answered by non_apologetic_american 4 · 0⤊ 0⤋
Personal property improvements are not a 'write-off' for taxes.
Interest, property taxes and other items associated with it MIGHT, but looking at your situation I'd say that it is not a current right off.
However, save those receipts! In the future, they might come in handy if you ever sell or need them.
2007-01-02 13:36:09 · answer #4 · answered by Molly 6 · 0⤊ 0⤋
You need to talk to a tax lawyer for your particular city and state. The laws vary a lot from state to state.
But, with the house in her name and on her property, I would say no.
2007-01-02 13:26:51 · answer #5 · answered by Anonymous · 0⤊ 0⤋
No you can't.
2007-01-02 13:31:47 · answer #6 · answered by nagant39@sbcglobal.net 2 · 1⤊ 0⤋