@nerobins wrote:
does this deduction still hold true for 2024 taxes? If the cost is over the $2500, can you expense the 2500 and add the remainder to the basis?
You are adding on to a very old discussion that combines old and new laws and business and personal property, and you have not explained your situation.
For business property, you can usually choose to expense improvements under $2500. If the improvement is more than $2500, you must list it as an improvement for depreciation. You may not expense the first $2500 and depreciate the rest.
For personal property, there is no tax deduction for property improvements. Property improvements are added to the cost basis, and may reduce your capital gains when you sell. There is a tax credit of 30% on the cost of certain energy efficiency improvements. If you upgrade your panel box as part of installing some other energy efficient improvement (for example, a heat pump or solar system), and if the upgrade is at least 200 amps, then you can also claim a tax credit for the panel upgrade. This is a credit, not a deduction.
