Question: Website that lists income Tax Deductions?
My wife and I put alot of money into our house and I know home improvements can be deducted but there are quite a few other things that we spend money on that we’re not sure if they count. For example, we paid a contractor to come and cut down some old, 1/2 dead trees next to the house. We’re sure this increased the value of our home, but not sure if that’s classified as “home improvement”… Maintenance is another question-what about servicing the furnace & water heater? Stuff like that… So if anyone knows of a website that’ll answer these questions, please let me know. Thanx!
Answer: No, actually, improvements to your residence can NOT be deducted. You can add the cost to your basis, so when you sell if you owe any tax on the sale, that will lessen the tax.
Maintance, like servicing the items you mention, no, not deductible, not added to basis.
There can be a gray area on what’s an improvement and what’s maintenance. Having the trees cut down would lean toward maintenance but you might convince an auditor it was an improvement.
As far as Itemized Deductions, the only deductible items are mortgage interest (under some cirdumstances including PMI) and real estate taxes. The last few years there has been a credit available, called the Residential Energy Credit, for certain items – some examples are replacement windows and doors, and insulation..
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