The variance in the answers you got to this question should tell you that you need to ask the IRS or an accountant, or somebody who really knows, not rely on Yahoo Answers for tax advice.
2007-01-09 14:37:11
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answer #1
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answered by Judy 7
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A new roof is a repair, the air conditioning is an improvement that adds to the cost value of your house so that when you ultimately sell it, you calculate the gain or loss based on the stepped up value to determine how much (if any) of the gain is taxable. If you put in additional insulation, then there may be a tax credit available in the year that the insulation was installed. If you borrowed money to pay for these, the interest on the loan would be tax deductible.
2007-01-09 08:46:53
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answer #2
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answered by n2js 2
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Regular improvements to your home are not tax-deductible.
But you may be thinking about the Energy Act credits that were recently enacted. The credit that applies to a roof or new A/C on your main home is called the "Nonbusiness Energy Property Credit."
This credit is 10% of the cost of the improvements up to a maximum of $500 for all improvements (not each improvement). A metal roof, or a high efficiency A/C system, are examples of qualified improvements.
The credit is in effect for 2006 and 2007. You claim the credit using Form 5695.
Link to Form 5695
http://www.irs.gov/pub/irs-pdf/f5695.pdf
2007-01-10 01:57:09
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answer #3
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answered by ninasgramma 7
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Yes on the roof, A/C unit need to be energy efficient of course to be deductible. But pretty much any home improvement can be tax deductible. Look on irs.gov for complete list.
Substantial improvement. An improvement is substantial if it:
Adds to the value of your home,
Prolongs your home's useful life, or
Adapts your home to new uses.
Repairs that maintain your home in good condition, such as repainting your home, are not substantial improvements. However, if you paint your home as part of a renovation that substantially improves your qualified home, you can include the painting costs in the cost of the improvements.
2007-01-09 08:16:36
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answer #4
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answered by F.A.Q. 4
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If it is your personal residence, home improvements are NOT currently deductible. Rather, they will increase your basis in the residence in determining your gain when you sell the house. If the A/C units are Energy Star compliant, there may potentially be some energy saving credits you can apply for.
If the home improvements are on a rental property you own, then you can depreciate the cost of the improvements over the life of the rental. For residential rentals, home improvements would be depreciated over 27.5 years. For non-residential rentals, home improvements are depreciated over 39 years.
2007-01-09 08:28:34
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answer #5
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answered by jseah114 6
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they increase the basis of your property value. when you sell you compare the selling price to the new (adjusted) basis. the difference is a profit (probably capital gain). you don't have to pay if the gain is less than $500,000.
2007-01-09 08:33:05
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answer #6
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answered by Ovrtaxed 4
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only if your a landlord or you've just moved into a home and you itemize your taxes.
2007-01-09 08:17:02
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answer #7
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answered by MKM 3
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