Entries in Turbo Tax?

Question

We bought a house in 2006. Where can I enter upgrades that we did after we bought the house, like homeimprovements. Is there a place in Turbo Tax to do that?

Answer 1

The improvements are not deductible, so you won't need to enter them. These amounts will only come in to play if and when you sell the house. The improvements will add to the "cost basis" of the home and will decrease the net amount of any gain you may realize. A capital gain on a personal residence isn't taxable anymore anyway (up to $500,000 I think). You can still decuct 1st and second mortgage interest if the total of the loans equals or is less than your cost basis.

Answer 2

No government, state or federal, is going to fund improvements to your house, such as a pool, by allowing you to deduct them from your income. Sales tax on them; maybe. The actual costs; NO WAY!

If you are looking to deduct these improvements, you asked the same question on another BB and got the correct answers. What is causing you think you will get a different answer here?

Or is this more of a how to use the software question? I am assuming TT asked if you bought a house and you entered the data. Are you now trying to add the additions to your house's basis for the improvements you made after the initial purchase? If so most of us have yet to buy TT so you may have to ask in say February.

Answer 3

Reginel6, I was thinking that if you made improvements on your house that increased the value of it, they would be tax deductible! I'm not sure, but call H & R Block, and they will be able to answer that question gladly, and free! And if you follow the Turbo Tax program, I think it shows where the home improvements go, and it will automatically use them or leave them out!

Answer 4

If you are using the house a your primary residence, are you sure "improvements" tax deducatble? I don't think so.