Can I deduct money spent on home improvements ($35,000)?

[jcander5603]

This money includes labor and material costs.

[DoninGA · Accepted solution]

The cost of improvements to your personal residence, not used as a rental or in a business, is not deductible on a tax return.  The cost of the improvements would be added to the basis of the home when it is sold.

[Carl]

Property improvements to your primary residence, 2nd home, vacation home or any other "personal use" real estate are not deductible on any tax return. They just add to your cost basis for the property. You will not deal with this on your tax return until one of three things happens in your life. (So keep all your paperwork.)

1) You convert the property from personal use to a rental or some other type of business use. (Such as claiming a home office for a business you own.)

2) You sell the property

3) You die.  Your heirs will need the information when they file your final 1040 tax return, and/or transfer your property into what will be your final estate, for disposition to your heirs.