Jump to content

Tax deduction question - Home Improvements


Berto

Recommended Posts

Wondering if there are any tax gurus on here. I am faced with a dilemma.....are the home improvements I did to my house last year tax deductible?

 

It looks like the discussion is whether it was a repair or a legitimate improvement.

 

Some examples site repairing a patch in your roof vs replacing the entire roof.

 

 

My specific example is that I redid all the flooring in my house. Got rid of the old carpet and put in 1200 sq-ft of wood laminate and a bit of tile. Yes the carpet was old but I would consider it an improvement rather than a replacement.

 

I see arguments for that if it extends the 'longevity of your house'. My Laminate wood flooring has 20 yr warranty, where carpet would generally not last that long.

 

From an energy efficiency stand point could I at least target the insulation padding I used under the flooring? I was feeling like a boss and bought the premium insulation/padding.

Link to comment
Share on other sites

If it is a renovation for a home office it's deductible, but if you sell you'll have to pay taxes on the depreciated value.

 

Edit,

You have to have income associated with the home office. The value of the improvements can't be greater than the amount of the associated income.

Link to comment
Share on other sites

If it is a renovation for a home office it's deductible, but if you sell you'll have to pay taxes on the depreciated value.

 

Edit,

You have to have income associated with the home office. The value of the improvements can't be greater than the amount of the associated income.

 

+1 on the office part, that makes it a deduction.

 

If you're referring to the energy credits:

 

You cannot target the insulation/padding as an energy improvement. The padding you used probably has an R-Value of 3, maybe 4. The R-Value necessary for our regions Climate is R-38 to maximize efficiency as prescribed by the IRS using IECC's 2009 map. You couldn't fit that type of insulation in anything but an exterior wall or attic. Anyway, if you think of anything that does qualify it will be reported on form 5695 with a credit up to 10% of your cost excluding installation charges subject to a $500 maximum.

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

×
×
  • Create New...