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deduction

Can you deduct home improvements on you 2025 tax return anywhere other then as a medical expense deduction?

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MindyB
Employee Tax Expert

deduction

It depends.  There are a few ways you may be able to save on your taxes.

 

  • Energy Efficiency Tax Credits- Instead of a deduction (which reduces taxable income), these are credits, which subtract directly from the taxes you owe. See this article for a summary of the amounts available: Energy Efficient Home Improvement Credit (EEHIC)
  • Home office deduction- If you are self-employed, you can take advantage of including the expenses on your Schedule C. You'd need to allocate the expense if it was not a direct improvement to the office only, and depreciate rather than expense if it's a major improvement. See: Where do I enter the home office deduction for my business?
  • If you cannot deduct it, keep records of the amount you spend.  It will increase your cost basis which'll reduce your capital gain if you have one when you sell above the primary residence exclusion.

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