What home improvements are tax deductible?

[Anonymous]

I know things like solar panels and some HVAC units provide a small tax credit, but is the actual cost of the unit and installation tax deductible? Dh recently took a buyout from his job and we've been bumped up a tax bracket. Charitable donation is at the top of the list but the house needs a bit of work so I'm considering new heat pump and possibly windows.

[Anonymous]

Better hurry, you only have 25 days to get it done!

[Anonymous]

We got a deduction for new windows last year.

[Anonymous]

Energy efficient Windows are a tax credit, not a deduction.
If you need any signicant home remodeling work done you can get a Heloc and deduct the interest.

[Anonymous]

Aren't you kinda late for that?

[Anonymous]

I say deduct first, worry later about whether it's within the "rules" or not.

[Anonymous]

Unless you operate your home as a rental business, you will not be able to deduct these as expenses. Some jurisdictions offer tax credits for stormwater or energy improvements, but those are very different from trying to claim home improvements as business expense.

[Anonymous]

Anonymous wrote:I say deduct first, worry later about whether it's within the "rules" or not.

As your tax advisor, I'd suggest you not do this.

[Anonymous]

Anonymous wrote:I say deduct first, worry later about whether it's within the "rules" or not.

Is that you Donald?

[Anonymous]

No home improvements are tax-deductible.

Some qualify for limited (small) tax credits.

Interest on loans used for improvements may be deductible, depending on whether or not you pay AMT.

Home improvements will increase the cost basis of your home, which may reduce what you owe when you sell someday (assuming you owe anything at all).

[Anonymous]

Anonymous wrote:No home improvements are tax-deductible.

Some qualify for limited (small) tax credits.

Interest on loans used for improvements may be deductible, depending on whether or not you pay AMT.

Home improvements will increase the cost basis of your home, which may reduce what you owe when you sell someday (assuming you owe anything at all).

It doesn't reduce what you owe.

If it raises the basis, it will change the gain or loss upon disposition. That's it.

[Anonymous]

You can deduct home expenses if you have a home office.

[Anonymous]

Anonymous wrote:

Anonymous wrote:No home improvements are tax-deductible.

Some qualify for limited (small) tax credits.

Interest on loans used for improvements may be deductible, depending on whether or not you pay AMT.

Home improvements will increase the cost basis of your home, which may reduce what you owe when you sell someday (assuming you owe anything at all).

It doesn't reduce what you owe.

If it raises the basis, it will change the gain or loss upon disposition. That's it.

NP here but I HATE it when people are excrutiatingly nitpicky for no reason. The PP was exactly right when s/he said "which may reduce what you owe when you sell someday (assuming you owe anything at all)".

[Anonymous]

Anonymous wrote:You can deduct home expenses if you have a home office.

Taking a deduction for a home office is nearly impossible and certainly not worth the fed flag. My wife's worded full time from home in a dedicated office for 5 years and we've never had it do anything for us.

[Anonymous]

*Red