I did a huge remodel of my home the last year. What can be claimed? We gutted 2 bathrooms and rebuilt them. Also new floors throughout. What can I claim?
New flooring throughout the house, new toilets, vanities, plumbing fixtures, shower, bath tub, lighting fixtures, new Windows throughout the house. I don't understand the message on the tax paid. 8.25%
01467
1 Replies
SeanE1
New Member
Jun 6, 2019 4:59:55 AM
Unless the home that was remodeled was a real estate property, none of the expenses would be deductible. The costs that were incurred would instead increase the basis of the home. An increase in basis actually lowers the amount of capital gain that is realized on the home when the home is eventually sold. You would compare the sales proceeds of the eventual sale with the adjusted basis to determine the gain and possible capital gains tax paid on the sale of the home.
If you took out a home equity loan to finance the remodel, the interest on the loan may be tax deductible. For more information on a home equity loan and its deductibility, see this Link: