Hi,
I am a home owner and rent out two rooms in my house while also living in the house. In 2024, I invested money into several large home projects. I've read a bit about the law on getting tax breaks from home improvements versus replacements as a landlord, but am unsure where I draw the line between the two categories. Could you provide input on which of the following projects would qualify me for a tax break?
Also: I'm wondering if ONLY the projects that occurred during the exact months I was renting my house out would count for tax breaks under this law, or if I could count any project completed in the same calendar year, especially if they were completed immediately prior to renter move-in (i.e, in preparation for renters).
1. Changing out ~30 year old carpet for luxury vinyl floors (the carpet was arguably a health hazard - there were piles of dirt under the carpet, areas where an animal had soiled it, etc when it was pulled up)
2. My 23-year-old furnace/ac was changed out for a heat pump/back-up furnace/ac (the company that did this replacement told me that my furnace/ac were both at the end of their life based on how old they were - I'm sure I could get documentation for this, if needed for an audit)
3. I had a spot repair of my sewer pipe where there was significant cracking - this was rated as critical per my inspection report
4. Installation of radon mitigation system (radon of 15.6 was significantly over the US-approved cutoff of <4)
5. I grounded multiple outlets, light switches, and lights that were initially not grounded
6. I added new siding on one side of my house and sealed this off as well - also rated as critical per my inspection report due to possibly permeation by the elements/weather
7. I installed security cameras
8. I removed dead grass in my front yard and replaced this with drought-resistant plants for water conservation. I also upgraded the existing sprinkler system to drip irrigation to support this change.
Thanks!
