I've started my taxes and can seem to find where I can put my cost for home improvement.
2007-03-23 20:12:07 · 7 answers · asked by meggdragon 1 in Business & Finance ➔ Taxes ➔ United States
There are a few home improvements that would be eligible for a residential energy credit, such as new windows, doors and insulation. See http://www.irs.gov/newsroom/article/0,,id=154657,00.html
for more information.
Other than these items, your costs for home improvements are not deductible. If they are improvements and not repairs, you can add them to the basis of your home and save on taxes when you sell it if any are due.
2007-03-24 02:51:26 · answer #1 · answered by Judy 7 · 0⤊ 0⤋
Nowwhere. Home improvements are not tax deductible. They increase the "basis", or purchase price of your home.
However, if you rent out any part of your home, the improvements you make can be depreciated over 27 & 1/2 years, but only to the extent that the improvements were for rental purposes.
2007-03-24 13:16:32 · answer #2 · answered by bold4bs 4 · 0⤊ 0⤋
You can't find the place to put it because there isn't one. You cannot deduct home improvements.
You need to keep accurate records of those expenditures though, as you will use them to adjust your cost basis in the home when you eventually sell. They will increase the cost basis and reduce the gain on the sale. If any of the gain is taxable, the improvements will reduce the tax on the gain.
2007-03-24 07:48:29 · answer #3 · answered by Bostonian In MO 7 · 1⤊ 0⤋
You cannot deduct home improvements. The cost of the improvements just gets added to the cost basis of your home.
2007-03-24 03:20:53 · answer #4 · answered by tma 6 · 1⤊ 0⤋
Go to the IRS web site and check the section that outlines changes made late in 2006. Certain ENERGY EFFICIENT improvements are deductible in 2006 and 2007, for instance energy-efficient replacement windows, and an energy efficient hot water heater. The list is quite specific. No paint, tile, etc.
2007-03-24 13:11:56 · answer #5 · answered by Just Mee 2 · 0⤊ 0⤋
I tried that as well. The only way you can claim it is if you used a loan to purchase the improvements. Then it is only the interest which can be deducted. Sorry, but that is the way they wrote the tax code.
2007-03-24 03:15:32 · answer #6 · answered by ? 4 · 0⤊ 1⤋
If you reside in the house you are wanting to claim home improvements you can't. you can only write off improvements to income property. or business's
2007-03-24 03:24:23 · answer #7 · answered by jthessen 2 · 0⤊ 1⤋