I have a $4,000 bill for plumbing repair on my primary residence. This was not covered by insurance, but the repair was necessary to make the home habitable. THANKS!!
2007-01-07 10:42:49 · 8 answers · asked by Sammy Da Bull 3 in Business & Finance ➔ Taxes ➔ United States
If the repair was due to a sudden casualty, such as vandalism or an accident, you can deduct the amount that exceeds 10% of your adjusted gross income for that year, less $100. If the repair does not cover all the damage caused by say frozen pipes that exploded and spoiled your floors and walls then your loss is more than $4000 . If your adjusted gross income is, say $30,000 you would have a deduction of $900.plus any other damage, even if it could not be repaired.
If the repair was due to gradual deterioration and you do not use your home for business, you can't deduct it, If it makes a permanent improvement such as adding new fixtures, you can at least add it to the cost basis of the home.
2007-01-07 14:16:29 · answer #1 · answered by Kate 1 · 1⤊ 0⤋
Primary residence repair bill for $4000 uncovered by insurance. Unless you are renting a portion of your house or use a portion of your house with a home office deduction, I do not see any way for you to deduct any portion of this amount from your taxes.
The only options I can see are casualty loss (if it was sudden and unexpected and then it must exceed 10% of your AGI) as itemized deduction or keep these receipts so that your basis in the home is increased so that later on when you sell it, gain of up to $4000 paid for repairs is not taxed.
2007-01-07 11:10:27 · answer #2 · answered by MousePotato 2 · 1⤊ 0⤋
Repairs, unfortunately, don't add to the basis of your home. Additions and improvements do. I'm assuming that your home had operational plumbing before the incident - if you had been living with just outdoor facilities and then put in plumbing, then it could add to the basis.
You might be able to make a case for the costs as a casualty loss. See an CPA if you want to try.
2007-01-07 11:23:49 · answer #3 · answered by Judy 7 · 0⤊ 0⤋
The only options I can see are casualty loss as itemized deduction or keep these receipts so that your basis in the home is increased so that later on when you sell it, gain of up to $4000 paid for repairs is not taxed.
2015-10-09 03:02:17 · answer #4 · answered by islandwide 1 · 0⤊ 0⤋
No you cannot deduct the expense, unless you are taking a home office expense deduction then a potion of it can be. Otherwise it would be added to the basis of your home as a capital improvement. If you live in your home for at least two years you can exclude the gain from being taxed when you sell the home. But if you don't live their two years this expense will increase the basis of your homeand either add to the loss when you sell it or decrease the gain.
2007-01-07 10:51:21 · answer #5 · answered by The Answer Man 2 · 0⤊ 0⤋
you're in a position to take a casualty loss deduction for the loss in case you itemize. From the completed value of the loss, deduct any coverage reimbursement, then deduct $a hundred and then deduct 10% of your AGI. regardless of maintains to be, if something, is what you may deduct.
2016-10-30 07:00:11 · answer #6 · answered by gripp 4 · 0⤊ 0⤋
If it is a rental, then it is deductible as a business expense but I don't recall seeing that option on the regular 1040 long form . . .
Here is their site . . . have a look at the forms
http://www.irs.gov/individuals/index.html
hmmm, maybe on Schedule A , under line 19 ?
Page 6 of the instructions , tried to copy / paste but no fly
Go to the site & click on the instructions for schedule A, then go to page 6.
2007-01-07 10:53:14 · answer #7 · answered by kate 7 · 0⤊ 1⤋
you can deduct the expence if you have a home based business.
2007-01-07 10:46:26 · answer #8 · answered by Anonymous · 0⤊ 0⤋