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posted Apr 1, 2025 11:36:28 AM

Replace a furnace for my home

I replaced my old furnace in my home in 2024. Is the cost of the furnace deductible? (I live in my home, it is not a rental.)

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1 Replies
Expert Alumni
Apr 1, 2025 11:41:00 AM

No.  Personal expenses are not deductible. 

 

However, it is possible, depending on the new furnace that you are eligible for the Home Improvement Energy Efficiency Credit.  You can enter the information under home in the Deductions and Credits section. 

The Home Improvement Energy Efficient Credit is a non-refundable credit

  • Worth up to 30% of costs with a maximum credit $2,000 for
    • Air source heat pumps
    • Heat Pump Water Heaters
    • Biomass Stoves or Boilers
  • Worth up to 30% of qualifying costs for a maximum combined total of $1,200 for the following:
  • You can combine the $2,000 credit with the $1,200 credit for a total of $3,200
  • This credit is a use it or lose it credit.  If you do have enough tax liability in the year you buy and install the item, you will not be able to carry the credit forward.
  • NOT available for new construction.