rjs
Level 15
Level 15

Investors & landlords

I assume you are talking about your own primary residence. The cost of improvements to your home is not deductible on your tax return. When you sell your home you will add the cost of the improvements to the amount you originally paid for the home before you calculate your profit on the sale. Adding the cost of the improvements to the original cost will reduce the amount of profit. If any of the profit is taxable, reducing the profit will reduce the amount of tax that you have to pay on the sale.