I completely renovated my home major improvements in every room. I paid for it cash out of pocket. Can I deduct any of the expenses?

[Carl]

No. Property improvements to your primary residence or 2nd home are never reported or deductible on any tax return. All it does is add to your cost basis of the property and it doesn't get reported on any tax return until the tax year one of three things happens in your life.

1) You sell the property

2) You convert the property to a rental or other business use.

3) You die.

[HelenC12]

On your personal residence, the answer is usually no, although you might qualify for certain kinds of energy-related home improvements.

Home improvements may come into play when you sell your home because they're included in your home's adjusted cost basis. The bigger your basis, the smaller your capital gain, and that means less tax if your home sale profit exceeds $250,000 ($500,000 if you're filing jointly). Read more about the tax implications of home sales.

To qualify as a tax deduction, the home improvement must:

• Add materially to the value of your home; or
• Prolong your home's useful life significantly; or
• Adapt your home to new uses

For most people, home improvements—even major ones—won't help their taxes after the home is sold. Nevertheless, it's always a good idea to keep track of what you paid in home improvements over the years, not just for potential tax savings, but also to help justify your selling price.

Related Information:

• Can I claim energy-efficient appliances or energy-saving home improvements?
• Are home repairs or maintenance costs deductible?
• Is the money I made from a home sale taxable?

Source: TurboTax FAQ