I had a terrible power surge on December 31, 2025 that destroyed my systems and appliances in my house. Can l claim the repair expenses on my taxes?

[DoninGA]

Repairs and/or improvements on a personal residence, not used as a rental, are not deductible on a tax return.

The cost of any improvements can be added to the basis of the home when it is sold.

[MindyB]

You generally cannot deduct repair expenses for a personal power surge unless your home was located in a federally declared disaster area at the time. If your area was officially designated by FEMA (for example, due to a major winter storm or hurricane on December 31), you can claim the loss, but you must first subtract any insurance reimbursements, and a $500 floor. See: What if I have property that was lost or damaged (a casualty loss)?

If it was just a localized surge not tied to a federal disaster, the IRS does not allow a deduction for these personal expenses. However, you should check if the new appliances (such as a water heater) you bought qualify for energy-efficient tax credits, which could still save you up money regardless of where you live.  (See: What appliances qualify for energy tax credits?)