I am planing to remodel my kitchen, can I deduct the cost from my taxes this year?

Answer 1

You canot deduct the expenses for maintaining or improving the home that you live in - in any year. You will add the cost to the 'basis' of the home (meaning what you paid for it), so that when you sell the house you will reduce any taxable income you may incur. Most people do not incur taxable income when they sell the home that they live in, but if you sell it for more than $250,000 than you bought it for, you could. So, keep track of what you pay to improve or maintain your home until you sell it, just in case.

Answer 2

You cannot deduct the cost of the kitchen remodel from your income this year. However, you will not pay income tax on the increase in value from the remodelling when you sell your house.

This is because the cost of the remodel is added to your total cost of the house, and is excluded from taxes when you sell your house.

In addition, if you take out a loan to remodel your kitchen, you can deduct the interest on that loan as mortgage interest on Schedule A. This deductibility of interest on a home equity loan is limited to the interest on $100,000.

Answer 3

No, that is not deductible on a personal residence. Keep records of your expenditures though as it will increase your cost basis and therefore reduce any gain on sale. Some of that gain could be taxable when you sell and if so that will reduce your tax bill when you sell.

Answer 4

No you can't. You might be able to add it to your basis in the house, so if you owe taxes when you sell, it might help you there, but it's NOT a deduction. It's your new kitchen, and is a personal expense, not one the taxpayers will subsidize.

Answer 5

Not unless the home is a rental or you use the kitchen portion of your personal residence for business. To the degree that the new kitchen adds value to the home you can adjust the basis which will impact your gain when you sell.

Answer 6

No, you cannot this year or next.