Deductions & credits

For federal purposes, the credit for home improvements expired at the end on 2016, with the exception of certain solar equipment.

Form 5695 Expiration

If you itemize, you'll be able to deduct sales tax paid on the construction materials.  Tax paid combines with the rest of your itemized deductions, to come up with a total to be subtracted from your adjusted gross income, leaving you with your taxable income.

That figure transfers over to your AR return, so it doesn't get reported separately; it's already excluded from your AR return.


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