topic Where do i enter seismic retrofit expense in Get your taxes done using TurboTax

Where do i enter seismic retrofit expense

cl080141 — Mon, 09 Mar 2026 06:16:50 GMT

where do I enter california seismic retrofit cost

Re: Where do i enter seismic retrofit expense

MaryK4 — Wed, 09 Feb 2022 21:28:54 GMT

You will enter as a depreciable asset. It is a betterment to the building structure and is treated as an improvement to the building. You must capitalize the amount paid. Just to clarify, are you entering for a rental property or home office?

If it is for your personal residence, you would not deduct but add to the basis of the home.

Re: Where do i enter seismic retrofit expense

cl080141 — Wed, 09 Feb 2022 21:36:37 GMT

I took this from the internet. I paid $6000 total for retrofit, but was refunded $3000.

Is earthquake retrofit tax deductible?

If your retrofit is completed on, or after, January 1, 2017, and before January 1, 2022, you may qualify for a credit on your taxes. ... If you do this, you can get credit for 30% of the qualified costs of your seismic retrofit.

Re: Where do i enter seismic retrofit expense

cl080141 — Wed, 09 Feb 2022 21:56:27 GMT

Yes, this is a personal residence. - own home

Re: Where do i enter seismic retrofit expense

cl080141 — Wed, 09 Feb 2022 22:02:58 GMT

Also, included in the cost of the retrofit was a $500 permit fee - would you be able to deduct that fee also??

Re: Where do i enter seismic retrofit expense

JohnW152 — Thu, 10 Feb 2022 14:13:58 GMT

This wasn’t a credit that was available on your federal or California state return, and there’s nothing for you to enter on your federal or state tax return.

Earthquake Brace + Bolt (EBB) was a grant program that provided eligible California homeowners up to $3,000 towards residential seismic retrofits.

As a grant program, it wasn’t a credit that a taxpayer could claim to offset tax.

The window for participation in the Earthquake Brace + Bolt program has closed. Please see the Brace + Bolt Program link in the state’s Earthquake Recovery site for more information.

As MaryK1101 suggests above, if these changes were made to your personal residence, you can add them to the basis of the home. Permit fees would be included.

Re: Where do i enter seismic retrofit expense

bonbon23 — Fri, 25 Feb 2022 18:32:24 GMT

Is there a credit in California for the retrofitting expense. It appears to me it is 30%. In that event, where does it get entered on the CA return? thank you

Re: Where do i enter seismic retrofit expense

cl080141 — Fri, 25 Feb 2022 19:19:57 GMT

Exactly - I couldn't get an accurate reply from Turbo Tax (person said to sign up for Turbo's expert help) - so contacted CA. Tax Bd. There is a special California form we need to use - Schedule 540A - and you need to fill it in from the top she said. (you can down load it from them) . I tried to find out if it was Federal tax credit, but couldn't get any info.

Re: Where do i enter seismic retrofit expense

cl080141 — Fri, 25 Feb 2022 19:21:28 GMT

See my latest reply please.

Re: Where do i enter seismic retrofit expense

DaveF1006 — Sat, 26 Feb 2022 00:52:08 GMT

@cl080141 Please read the following Turbo Tax post written by a staff of tax professionals. A Seismic retrofit is not eligible for a federal energy credit. It does not fit in with the energy classification criteria listed in the post.

There also not a state credit offered either. According to this unofficial source, you could have applied for a grant to receive $3000 grant through Earthquake Brace + Bolt (EBB), a program jointly administered by the California Earthquake Authority (CEA) and the California Governor’s Office of Emergency Services. The grants help offset the cost of seismic retrofits that brace the cripple walls of older homes, when present, and bolt houses to their foundations, making them less vulnerable to earthquake damage. Unfortunately, this offer was only valid from 10/27-12/01 2021 to apply for the grant.

As far as the advice about reporting on a Schedule 540, this is only if you received this grant from the State of California and you wanted to offset this income with a subtraction. If you did not receive a grant, there is nothing to report in this schedule.

About the best thing you can do is follow the tax advice offered by MaryK1101 and JohnW152 and add this as a basis to your home.

[ Edited 02/25/22|04:50 PM PST]

Re: Where do i enter seismic retrofit expense

cl080141 — Sat, 26 Feb 2022 02:33:28 GMT

I did receive a special grant from California - and, I had the retrofit done to my home. It cost me $6000 and I received a refund of $3000, last year. There was a bill passed in CA. that says we are also allowed a 30% tax credit - so I would assume that means 30% of the $3000 I had to pay = $900. I was told by a CA. tax rep that I need to fill out form 540A - from the top -she emphasized - in order to get that credit on my CA. return. As far as the Fed return, I was unable to reach someone at Fed tax.

Re: Where do i enter seismic retrofit expense

cl080141 — Sat, 26 Feb 2022 02:34:26 GMT

See my reply

Re: Where do i enter seismic retrofit expense

DawnC — Sat, 26 Feb 2022 03:21:37 GMT

Did you report the income from the grant? There is no federal or CA state tax deduction for seismic retrofits at this time. You should add the net cost of this project to the basis of the property to lower any gains when you sell it.

AB-234 Income taxes: credit: seismic retrofits - I believe this is the bill you are referring to and it has only been introduced, not passed into law.

Re: Where do i enter seismic retrofit expense

cl080141 — Sat, 26 Feb 2022 07:25:10 GMT

Bill Text - AB-428 Income taxes: credit: seismic retrofits. (ca.gov) What about this bill that was passed in 2015?

Doesn't it count?

The $3000 refund is not taxable according to what I have read.

Re: Where do i enter seismic retrofit expense

RobertB4444 — Tue, 01 Mar 2022 00:09:09 GMT

@cl080141 That bill was passed in 2015 and effected your 2016 taxes. There is no tax break in 2021 for residential seismic retrofits. However you can apply to receive a rebate on money you spent on that seismic retrofit from the California Earthquake Brace and Bolt program. That is where that $3000 comes into play and you are correct - since it is a reimbursement of money that you have spent it is not taxable.

Re: Where do i enter seismic retrofit expense

cl080141 — Tue, 01 Mar 2022 01:14:59 GMT

According to the bill -

This bill, for taxable years beginning on or after January 1, 2017, and before January 1, 2022, would allow a tax credit under both laws in an amount equal to 30% of the qualified costs paid or incurred by a qualified taxpayer for any seismic retrofit construction on a qualified building, as provided.

Re: Where do i enter seismic retrofit expense

RobertB4444 — Tue, 01 Mar 2022 02:18:41 GMT

@cl080141 Yes. A qualified building is not a residential home, however. That credit is for businesses, not individuals.

Re: Where do i enter seismic retrofit expense

cl080141 — Tue, 01 Mar 2022 04:01:05 GMT

The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws. Where does it qualify residential vs. corporate/business ? I checked with CA. tax and was told to submit a 540a form to claim the 30% -

Re: Where do i enter seismic retrofit expense

DMarkM1 — Tue, 01 Mar 2022 16:48:25 GMT

As stated earlier there is no seismic retrofit credit on the CA Form 540 or in the instructions. A form 540A is a short form version with limited income sources and limited deductions and credits. However the Form 540 has all the income sources and credits available in CA.

As noted earlier according to the instructions for the CA form 540: Financial Incentive for Seismic Improvement – Taxpayers can exclude from gross income any amount received as loan forgiveness, grant, credit, rebate, voucher, or other financial incentive issued by the California Residential Mitigation Program or the California Earthquake Authority to assist a residential property owner or occupant with expenses paid, or obligations incurred, for earthquake loss mitigation. Additional information can be found in the instructions for California Schedule CA (540).

If you received such a grant and it was included in your Federal Adjusted gross income for 2021 you can use a subtraction in your CA return. In your CA state interview continue to the page titled " Here's the income CA handles differently." Scroll to the bottom for topic "Other Adjustments to income."

Re: Where do i enter seismic retrofit expense

bonbon23 — Wed, 02 Mar 2022 19:01:15 GMT

Hi - because of COVID the work wasn't done until 2021. He is insisting that it's deductible for 2021. Thanks