tax question?

Question

I would like to know if i can use my home provement receipts for tax purpurses. i get conflicting answers, some say yes and some say no. i just did a remodel of my kitchen and always painting and improving every room.

Answer 1

Yes - you can use your home improvement receipts for tax purposes.

But only as an adjustment to your "basis" or cost of your home.

The only home improvements that you can use to increase the basis of your home are those that are "affixed" to your home. The purchase of appliances
for your home are not home improvements. Since you remodeled your kitchen, all the costs associated with the remodel are an adjustment to the basis of the home.

When you sell your home, all of the improvements you have made are added to the purchase price. The difference between the adjusted sales price (after commission) and the original cost plus improvements will be either a gain or loss to you.

For a home, actually in tax lingo it is called a "personal residence" you may qualify for a $ 250,000 income exclusion if you file single or a $ 500,000 exclusion if you file jointly, if the sale resulted in a gain.

Answer 2

Everyone so far has missed it. The sales tax paid on the supplies/materials MAY be deductible as an itemized deduction if they are 1. Greater than the general sales tax deduction and 2. Greater than state taxes paid. (depending on the state, you may have no state taxes paid)

The above is correct about increasing your basis. However, gain is excluded of 250K if single and 500K if MFJ and lived in the home 2 of the past five years.

Answer 3

Home improvements may add to your basis but they are not deductible if your are referring to your personal residences. Keep the receipts for when you sell the house.

Answer 4

true but we didnt have as much baby boomers 100 years ago and a debt or many more doctors claim need social security..we have to pay somewhere...i think we should just close the loop holes the rich have especially the ones in hollywood...there is 1 cure for all this and that is indeed socialism EDIT:i dont know if u or the guy under me actually wrote these poems but they are good!

Answer 5

You can''t take any credits for home improvement however you can take a credit for qualified energy efficient items used to improve your home such as insulation materials, exterior windows(including skylights),exterior doors and coated meatal roof meeting Energy Star requirement.

Answer 6

Home improvements (but NOT repairs) increase the cost basis in your home. That will reduce your gain when you eventually sell your home.

Answer 7

Not deductible.

Certain items may qualify for a new energy credit but the credit is relatively small.