tax write off for home improvement to my condo?

Question

i bought my 1st place (1st time home buyer) in june which is a condo. my whole kitchen was redone with cabniets, tile, stove, sink, counter tops, painted and washer/dryer. can this be writen off? can the labor be writen off? what can be writen off with my morgage payments? anything to do with home improvements be writen off? co worker told me this can be.

Answer 1

Unless you are planning to live there less than 2 years OR you plan on selling for more than $250,000 profit (or half million of you are married), there's no need to keep any receipts. There's no tax deductions now or in the future for you. Enjoy your new home.

Tax Advisor

Answer 2

You need to keep track of the costs, and you need to keep your receipts (make a photocopy of your receipts because the originals tend to fade out with time)...

then when you sell your home you can claim the costs of all your improvements (not routine upkeep but just improvements)...

you do not have to pay taxes on the interest you pay on your mortgage...

use a good software program for your taxes and it will get all of your deductions.

Answer 3

Co-worker is wrong, if it's your personal home. If you owe any taxes when you sell it, which under current law you probably wouldn't if it is your main home for two years, you might be able to include some of the items, not all, as part of your basis in the property.

Answer 4

you can not write it off of your taxes when you own the home or condo. However when you sell the condo any improvements you will be able to add to your basis which will lower your gain on the sale and thus lower the amount of tax that youll have to pay.

Answer 5

The home improvements can be used to offset any capital gains you might have when you go to sell.

You should be able to deduct the interest you paid on your mortgage from your taxes.

Good luck!!!