Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
cancel
Showing results for 
Search instead for 
Did you mean: 
faye270
New Member

Do I get a tax break for a cash purchase of a home and the improvements made to that home

 
1 Reply
Marketstar
Level 7

Do I get a tax break for a cash purchase of a home and the improvements made to that home

There are no immediate tax breaks for buying a home (such as a homebuyer credit) for cash but keep in mind that you are allowed a deduction for all property tax paid.

Home improvements would not be deductible unless they are qualified energy efficient

If you make improvements which increase your home’s market value and/or extend its useful life, you can add to the cost basis of your home, which may reduce the capital gain when you sell your property.

In addition, you may be able to deduct the sales tax paid for building materials for a major improvement to the home if you itemize deductions and choose the sales tax deduction over state income taxes paid.

See Home Improvements And Your Taxes

Dynamic AdsDynamic Ads
Privacy Settings
v