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Level 2
posted Dec 21, 2022 11:07:08 AM

How do I write-of a ST-124 certificate of capital improvement expense on my TAX RETURN

We purchased the house in July. Did repairs -capital improvement of $10,000.  It is our primary home. How can we deduct these costs? 

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1 Best answer
Level 15
Dec 21, 2022 2:05:20 PM
8 Replies
Level 15
Dec 21, 2022 11:34:29 AM

You don't ... a capital improvements on a personal residence is added to the cost basis.  There is nothing to deduct on an income tax return. 

Level 2
Dec 21, 2022 11:38:13 AM

So, I have to wait to sell the house ?

Level 2
Dec 21, 2022 11:39:09 AM

so i have to wait until I sell the house for it to be useful ?

Level 15
Dec 21, 2022 12:26:10 PM


@joblak1 wrote:

so i have to wait until I sell the house for it to be useful ?


For it to be useful for reducing your tax, yes, the improvement only reduces your tax when you sell the house.

 

Level 15
Dec 21, 2022 12:40:55 PM

A ST-124 certificate of capital improvement expense is for an exemption from paying NY state sales tax on the building materials.  It has nothing to do with your fedearl or state income tax returns.

 

As others have said, all you do is add the project cost to your cost basis for any future sale. 

Level 15
Dec 21, 2022 1:57:23 PM

Are you using part of your house for a Home Office or for your business?   You can use the total of the house purchase plus the improvement to depreciate part of it.  

Level 2
Dec 21, 2022 2:00:25 PM

Yes, I have a home office. How would I do this?

Level 15
Dec 21, 2022 2:05:20 PM