Home Improvements
Home improvements to your personal residence aren't deductible on your tax return, but they do increase your home's cost basis. Even though many home sales aren't taxed due to the home-sale exclusion, you should still track your basis because it can reduce taxable gain if your profit exceeds the exclusion or if the rules change in the future. Any real estate taxes or mortgage interest you paid during the year would go on the Itemized Deductions screen.
Home improvements that improve energy efficiency may be eligible for the energy efficiency credit (see Energy Efficiency Credit). Interest expense for loans made for home improvements usually qualify as a mortgage interest deduction (see Mortgage Interest). Home improvements for qualified medical reasons are deductible as a medical expense to the extent that the cost exceeds the increase in the value of your home from the improvement. Examples of home improvements for medical reasons are remodeling a bathroom to make it more accessible, installing an elevator, or constructing a swimming pool for arthritis treatment (see Medical Expenses).
The IRS allows you to deduct any repairs that you make on a rental property (see Rental Income).
Home improvements that improve energy efficiency may be eligible for the energy efficiency credit (see Energy Efficiency Credit). Interest expense for loans made for home improvements usually qualify as a mortgage interest deduction (see Mortgage Interest). Home improvements for qualified medical reasons are deductible as a medical expense to the extent that the cost exceeds the increase in the value of your home from the improvement. Examples of home improvements for medical reasons are remodeling a bathroom to make it more accessible, installing an elevator, or constructing a swimming pool for arthritis treatment (see Medical Expenses).
The IRS allows you to deduct any repairs that you make on a rental property (see Rental Income).
