can i deduct the cost to finish the basement in my home?

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can i deduct the cost to finish the basement in my home?

2007-02-10 12:23:34 · 3 answers · asked by needtaxhelp 1 in Business & Finance ➔ Taxes ➔ United States

3 answers

No. How does you having a nice basement benefit the government?

It increases the cost basis of your home though, so you pay taxes on less profit when you sell your home.

2007-02-10 12:27:44 · answer #1 · answered by Lisa A 7 · 0⤊ 0⤋

You can't deduct it now, but when you sell the home, you can add it to your basis to determine your gain. If you owe any taxes on the sale, these costs would reduce them.

2007-02-10 22:27:25 · answer #2 · answered by Judy 7 · 0⤊ 0⤋

Yes, when you sell the home and not before.

2007-02-10 20:26:41 · answer #3 · answered by Anonymous · 0⤊ 2⤋