Open TurboTax

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
Announcements
Your taxes, your way. Get expert help or do it yourself. >> Get started
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

cancel
Showing results for 
Search instead for 
Did you mean: 
benjamin-sipe
New Member

I can write off taxes for large purchases. Does that include the contractors who put on our patio last year?

 
1 Best answer

Accepted Solutions
DawnC0
Intuit Alumni

I can write off taxes for large purchases. Does that include the contractors who put on our patio last year?

If you are referring to your personal residence , 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

Sales tax on home construction or renovation is deductible if your state, county, or locality imposes a sales tax on home sales or renovations. You must purchase the materials and pay the tax, or when the contractor is your agent under the contract and must follow your directions on construction decisions, it will be as if you purchased the items and paid the sales tax. The tax rate must be the same as the general sales tax rate and you must itemize deductions.


View solution in original post

4 Replies
DawnC0
Intuit Alumni

I can write off taxes for large purchases. Does that include the contractors who put on our patio last year?

If you are referring to your personal residence , 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

Sales tax on home construction or renovation is deductible if your state, county, or locality imposes a sales tax on home sales or renovations. You must purchase the materials and pay the tax, or when the contractor is your agent under the contract and must follow your directions on construction decisions, it will be as if you purchased the items and paid the sales tax. The tax rate must be the same as the general sales tax rate and you must itemize deductions.


benjamin-sipe
New Member

I can write off taxes for large purchases. Does that include the contractors who put on our patio last year?

I meant writing off the sales tax. When I purchased a car I was able to write off the sales tax. Can I write off specially the sales tax for the contractor work, the materials or both?
DawnC0
Intuit Alumni

I can write off taxes for large purchases. Does that include the contractors who put on our patio last year?

You can deduct sales tax on building materials and your contractor services IF those taxes are specifically listed and if they are charged at the same rate as general sales tax.
benjamin-sipe
New Member

I can write off taxes for large purchases. Does that include the contractors who put on our patio last year?

Thanks, that's exactly what I needed to know!

About Community

Learn about taxes, budgeting, saving, borrowing, reducing debt, investing, and planning for retirement.

3.48m
Members

2.61m
Discussions

Manage cookies
v