Can i deduct major repairs that were necessary-exp. collapsed sewer drain, and improvements, new kitchen?
We brought a house and made lots of improvements, new tile floor, painting, new kitchen, new kitchen appliances, are any of these tax write offs?
what about a sewer drain that collapsed that was necesary to fix, happened the first month we moved in, total was about 2,500 for repair. Can we claim any of these?
No, expenses on your home are not deductible.
Improvements and capital expenses increase your cost basis in the house. You should keep record of such expenses. You will need it when you sell the house.
April 27th, 2010 at 5:41 pm
You cannot claim deductions on repairs/improvements to the house you live in. This only works on rental/investment properties. For example, if you had another house that you were renting out then you’d claim all the repairs on your taxes. However, if your improvements have to do with settting up a home business (e.g. you bought a desk and a computer for home business) then you can write that off as business expense. There may be other avenues to go about it and since I am not an accountant, I suggest you check with H&R Block or other tax accountants. Good luck
References :
April 27th, 2010 at 6:20 pm
No, expenses on your home are not deductible.
Improvements and capital expenses increase your cost basis in the house. You should keep record of such expenses. You will need it when you sell the house.
References :
http://taxipay.blogspot.com/2009/04/whats-new-for-2009.html
April 27th, 2010 at 6:57 pm
No, you cannot deduct those items. Major repairs and capital improvements are used to increase your basis in the property. That reduces your gain at sale time and any capital gains tax, if any is due when you sell.
Minor repairs (painting, etc.) or appliances have no tax impact at all unless this is an investment property. For your principal residence they do nothing for you.
References :
April 27th, 2010 at 7:47 pm
No.
No deduction for any of that in the current year.
References :
April 27th, 2010 at 8:33 pm
Maybe.
The normal repairs are not deductible and they do not add to basis. Capital improvements (increase the value, prolong the life, or adapt to a different use) do add to basis, but are not currently deductible.
If the sewer drain collapsed because of a casualty, you may have an allowable casualty loss after subtracting $100 and 10% of your AGI, if you itemize deductions. The collapse must have been from an identifiable event (flood, earthquake, storm, etc.). If the collapse was from ongoing deterioration, no deduction.
References :